Updated over 2 years ago on . Most recent reply
What's my next step and how to scale?
I have 3 properties, I'd like to stay with multi-units but how do I scale?
1st property- Will cash out refi this year to payoff heloc & CC's, heloc will reset and will have access to capital again. Property will still cashflow.
2nd Property- FHA, will leave alone, as interest rate is high, only 50k equity, relatively new. Will need to spend 40k to rehab one of the units in 2025, as it is a commercial unit and leased until then. Other 2 units are renting nicely.
3rd Property- Cash flowing nicely, about 180k in equity, will pull out money at some time, will need about 35k to rehab one unit, other 2 are renting nicely.
With access again (once I refi) to my Heloc about 100K and equity of 180 K for property #3 minus 2 future rehabs stated above, it looks like I might have 200k.
What would you do to keep scaling, should I keep looking for deals on my own with limited capital or partner up?
Most Popular Reply
You are already on the path. Exponential growth seems to start slow but then all of a sudden skyrockets.
Take the magic penny example. The magic penny doubles ever day. Would you rather have $100,000 or have the magic penny for 30 days.
Here is what a magic penny does.
- After 1 day you have $0.02
- After 2 days you have $0.04
- After 10 days you have $10.24. At this point, I'm sure you are ready to give up and take the $100,000 or partner with someone who is also frustrated with their magic penny.
- After 15 days you have $327.68 which still seems a far cry from $100,000
- After 20 days you have $10,485.76 which is now getting interesting
- After 23 days you have $83,886.08 and are starting to see the light.
- After 30 days you have $10,737,418.24. Still want the $100,000? The hard part is carrying $10M in pennies to the bank, but I'm sure you could find a way.