Scaling Struggle: What Size should we aim for and How should we try to get there?

Question

For the pro's here: I co-own 6 residential properties (7 doors) in a rust belt city, where housing prices are nothing like Tier1/2 US cities. It's been a big time commitment to manage mostly student rentals which turn over each year. Prices are lower but rents can bring good cashflow. I've been very DIY, using my real estate license to find and buy value-add and doing a lot of the renovation work, managing small crews, and have learned how to handle most aspects of the biz. After being exhausted with juggling my f/t job and the portfolio, I'm training a part-time (offshore) bookkeeper/VAdmin to assist with books and day-to-day management with Baselane. I'm working to find a couple handymen to handle repair issues. I want to automate and delegate as much as possible, to enable scaling up the portfolio to quit my f/t job.

What size (# doors, $/door, monthly NOI) got you to the point that you could quit your day job and have p/t or contractors handle most of the day-to-day work? Did you also move up as you grew to purchase larger units?

At what size did the cash flow alone allow you to quickly purchase an additional investment and really scale?

We've been targeting higher quality neighborhoods to ensure top quality tenants and after value-add (a LOT of sweat equity) are able to achieve $700-1k+ cash flow/mo per door, about $80k/year, my share $45k. My current f/t job is way above that, but could justify FIRE at $100k. I'm going to 1031E out of a non-performing property and that next purchase will add $2-3k/mo cash flow, getting to $70k/yr. A coupe more purchases should do it, so we're close, but I do worry about the additional management burden of getting there.

Ricardo R. · Answer

Hey Matthew,

You’re right at the stage where a lot of small investors hit the “time vs. scale” wall, so here’s what’s worked for me personally and others I have worked with in our management company (and what the numbers usually look like):

1. Cash Flow Threshold for Quitting the Day Job

• Most people I’ve seen make the leap when net cash flow hits 1.5–2× their living expenses.
• If your target is $100K/year, you want closer to $130–150K in net cash flow before quitting. This builds a buffer for vacancies, repairs, and market dips.

Most people I’ve seen make the leap when net cash flow hits 1.5–2× their living expenses.

If your target is $100K/year, you want closer to $130–150K in net cash flow before quitting. This builds a buffer for vacancies, repairs, and market dips.

2. Typical Portfolio Size

• With $700–1,000 per door, you’re already way above average. Many full-time investors I know are at 40–60 doors before replacing a $100K salary.
• The difference? Most of them only get $200–400 per door—your numbers are strong enough that you might need far fewer.

With $700–1,000 per door, you’re already way above average. Many full-time investors I know are at 40–60 doors before replacing a $100K salary.

The difference? Most of them only get $200–400 per door—your numbers are strong enough that you might need far fewer.

3. Scaling Without Burning Out

• Automate: Tools like Baselane, Buildium, or DoorLoop cut down on bookkeeping and tenant communication time.
• Delegate: A part-time VA for admin + a couple of reliable handymen often reduces 70–80% of the daily headaches.
• Systemize: Pre-set processes for tenant screening, rent collection, and maintenance requests mean you don’t get pulled in constantly.

Automate: Tools like Baselane, Buildium, or DoorLoop cut down on bookkeeping and tenant communication time.

Delegate: A part-time VA for admin + a couple of reliable handymen often reduces 70–80% of the daily headaches.

Systemize: Pre-set processes for tenant screening, rent collection, and maintenance requests mean you don’t get pulled in constantly.

4. Moving Into Larger Units

• Many investors shift to 8–20 unit small apartment buildings because one roof + one set of systems = less management chaos than 10 scattered houses.
• Economies of scale kick in fast: one lawncare contract, one plumber, one set of utilities.

Many investors shift to 8–20 unit small apartment buildings because one roof + one set of systems = less management chaos than 10 scattered houses.

Economies of scale kick in fast: one lawncare contract, one plumber, one set of utilities.

5. Buying the Next Property Faster

• A 1031 exchange into a bigger property is perfect timing—it consolidates management and boosts cash flow.
• Once you cross that $70K/year net mark, 1–2 more deals like the one you described could put you into full-time investor territory—especially if you move to fewer, bigger properties.

A 1031 exchange into a bigger property is perfect timing—it consolidates management and boosts cash flow.

Once you cross that $70K/year net mark, 1–2 more deals like the one you described could put you into full-time investor territory—especially if you move to fewer, bigger properties.

Bottom line:

• Build systems first, then scale.
• Bigger units often mean less chaos per dollar of cash flow.
• Full-time investing usually starts when income is well above living expenses so you can weather surprises without stress.
• I'll send you a DM if that's okay.

Build systems first, then scale.

Bigger units often mean less chaos per dollar of cash flow.

Full-time investing usually starts when income is well above living expenses so you can weather surprises without stress.

I'll send you a DM if that's okay.

Matthew Banks · Answer

Hey Ricardo R. thank you very much for your post. The info you provide is very helpful. A CF buffer above living expenses makes sense.

Ricardo R. · Answer

@Matthew Banks yeah for sure. CF is really the life blood so in any case no matter which path you go, protect it as much as you can can keep it on hand for life, future investments, rainny days, etc. I sent you a DM if you are able to assist that would be great but if not I understand and I hope this helps.

Scaling Struggle: What Size should we aim for and How should we try to get there?

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