Long Time Lurker — First Time Posting | Looking for Advice on Scaling

[Denise McIntire]

Hi everyone — long time lurking, first time posting. I’ve learned a lot from this community and now I’m at a point where I’m trying to figure out the best way to scale.

Location: South Texas — Rio Grande Valley (McAllen / Mission / Edinburg area)

Current Portfolio & Financial Position

Property #1 (Rental — Fully Paid Off)

• Zillow Zestimate: ~$250K
• Fully remodeled in a great neighborhood
• Currently renting for $1,850/month
• Insurance + Taxes: $582/month
• Tenant is moving out soon, so I have the option to move back in
• This was my first home, so I’m emotionally attached and would prefer not to sell

Property #2 (Rental — Low Interest Loan)

• Value: ~$220K
• Mortgage balance: ~$84K
• Interest rate: 2.75%
• Currently renting for $1,550/month
• 15-year loan (9 years remaining)
• Insurance + Taxes: $540/month
• Still cash flows even with a 15-year loan
• Very low maintenance property
• Because of the low rate, I prefer not to refinance

Property #3 (Primary Residence)

• Purchased 2 years ago
• Not rent-ready yet (outdated)
• Mortgage/Insurance + Taxes: $1,700 /month 
• Interest rate: 6.375
• Estimated $20K to update bathrooms
• I’m handy and doing upgrades myself to save money
• Expecting about 1 year to complete upgrades in my free time

Personal Financials

• 800+ credit score
• Stable W2 income
• Self-manage properties
• Do most repairs myself
• Limited cash currently for down payment

My Goal

I want to scale my portfolio, ideally into 2–4 unit multifamily, but the down payments feel difficult to save. At my current savings pace, it could take 4–5 years, and I’m wondering if that money might be better invested elsewhere in the meantime.

Questions I’m Considering

1. Should I use my paid-off property as collateral for a loan or HELOC?
2. Would it make sense to move back into the paid-off house to qualify for better financing?
3. Are there lenders that allow low-down or creative financing using existing equity?
4. Is fully financing a property ever a good idea, or too risky?
5. Should I stick with single-family homes or push toward small multifamily?
6. What are interest rates looking like right now for investors?

Additional Notes

• Realtors in my area are requiring loan preapproval before showing properties
• I'm open to either another SFH or small multifamily
• My priority is sustainable growth while minimizing risk

I’d really appreciate any advice from investors who have been in a similar situation. What would you do in my position?

Thanks in advance — excited to finally contribute to the community.

[Travis Timmons]

I get it. We are at 5 trying to add a few more over the next 5-7 years and then move into the stage of paying down debt. The spreadsheet says to lever up until you are done buying properties, but life does not exist on a spreadsheet. 

If I was in your spot, I'd get property #3 ready before doing anything else. And if you are willing (assuming a good inventory of 2-4 units), then move into a 2-4 unit house hack. Depending on the value of property #3 when you are done, sell it for a tax free gain since you lived there and reinvest or maybe refinance to pull some cash out for your next purchase. 

It's a grind and saving up a little bit month to month to get to a 20% down payment + closing and make ready costs feels impossible sometimes. Asset appreciation of index funds or properties has been the most effective way for us to get there.