Rental Property Investor · Utica, NY · Member since 2018 · 22 posts · 6 votes
I currently am house hacking a 2 unit. In addition to I just purchased a 4 unit. (Between the both I have about $50k in equity) Besides the two mortgages I am debt free. I am looking to GROW. Looking for advice from successful and experienced investors on where I should begin looking for my next move...
Residential Real Estate Broker · Aurora, IL · Member since 2017 · 96 posts · 45 votes
7y
I would continue the 4 unit strategy and utilize Fannie/Freddie financing at 30 year amortorization until you cap out. Then, look into commercial financing. Always try to use the BRRR method when you can!
Residential Real Estate Broker · Aurora, IL · Member since 2017 · 96 posts · 45 votes
7y
I would continue the 4 unit strategy and utilize Fannie/Freddie financing at 30 year amortorization until you cap out. Then, look into commercial financing. Always try to use the BRRR method when you can!
Ottawa, IL · Member since 2016 · 242 posts · 107 votes
7y
@Jake Diamond - Depends on so many things. I assume you can't purchase for the $50k equity alone right now. So I would personally look to see if there's ways to increase those without spending tons. Can you get another mortgage to acquire another property? I would be talking with a lender about that. Once you know financially what you have and can do, just keep running numbers and looking for those deals!
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
7y
@Jake Diamond sounds to me like you are shaking things up already. Don't get too ambitious in a high priced market; make sure anything you buy cash flows really well. The last owner is cashing in on the appreciation it may be a while before you can bank on prices rising very much any time soon. Not a good market to get too highly leveraged. Focus on what you have; study up, watch podcasts and only buy if it is a really good deal.
Real Estate Agent · Phoenix, AZ · Member since 2016 · 69 posts · 83 votes
7y
@Jake Diamond Congrats on your success so far! You have taken more action than most ever will.
Couple questions for you:
How active do you want to be in your investments? How much money do you want to make, and how quickly? Do you want to work with a team, or do you prefer the lone wolf approach?
The answers to these questions will help determine what types of products you might want to focus on.
Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes
7y
Hi Jake,
Honestly, $50k of equity is not enough to move to your next deal. I would focus on maximizing the returns on the two properties you own and work on saving up for your next deal. Everyone has a different opinion on how to invest but I am not going to cut my cash flow on my existing deals and leverage to get more debt.
My focus at this point is to increase my personal income and stack my cash so I can buy the next deal. Repeat this until you are happy and hit your goal. I am not going to risk years of hard work getting overly aggressive at the wrong time. You gotta know what inning we are in.