Rental Property Investor · Tupelo, MS · Member since 2018 · 132 posts · 61 votes
I've playing with a few calculators, as I prepare for the next potential downturn. I am a buy and hold investor with a portfolio getting close to 70 units. Is there a point that investors reach when buying for cash flow when they become too big to fail. It seems that if you are buying cash flowing properties that at some point there is so much operating income coming in that you at some point are generating enough money that as long as you do not take from the business income from the business. It seems at some point even when using high leverage that it becomes a game of staying power. You can borrow from peter to pay paul etc? What am I missing?
We're only 13 units in, so take this for what it's worth.
My guess is that when you're 70+ units in, the game is more about getting OUT on your terms, than risking an implosion. That's my read from the cheap seats. You, your banks, etc have a ton to lose by having you truly fail. That said, lots of high volume investors in my opinion have drank their own cool-aid over time and that $100k house may not be anywhere close to a $100k house anymore. Run out of time and no exit plan - that's what I wonder is the biggest risk in the world you're in. I'd be interested in your (and others') thoughts.