Rental Property Investor · Baton Rouge, LA · Member since 2018 · 151 posts · 13 votes
So. I have been investing in properties for about 3 years now. I have a house that I bought back in 2015 and still owe 80% on (will not sell). It is rented for $1650/month (could probably increase it if need be). Have a condo worth around 95k, with a two year contract for 850/month. Fully payed off, have another unit also worth around 95k, fully payed off but vacant at the moment. Additionally, I have 60k to invest. I would like to find a multi family complex maybe 4-6 units (MAYBE MORE) to buy and rent out.
The question is, is it recommended to sell what I have and buy cash, (assuming that I can find a multi family complex under $250k) or should I take out a loan?
Is it even possible to find a complex for that price?
The other option is to do a combination of both. Sell what I have and take out a loan and buy something with more units.
Long term goal is the same as all of us here. Financial freedom!!
Investor · Fort Wayne, IN · Member since 2013 · 152 posts · 126 votes
8y
I am definitely for passive income over flipping income. I also like the idea of leveraging money with the equity in a property rather than selling that property. If I were in your shoes I'd get some sort of portfolio or commercial loan on some of the properties you own while continuing to rent them out and allow your tenants to pay back the note
Investor · Lexington, SC · Member since 2018 · 779 posts · 501 votes
8y
My recommendation would be to refinance all of your current properties to pull out as much equity as possible. This will allow you to re-invest that equity into more properties and allow your portfolio to continue to grow. Even if you used that equity to pour into a larger passive multifamily syndication this would make more money for you then the smaller 5-6% that it might cost for the mortgage.