Scaling Investment Property Portfolio

[Bradley Benson]

Good afternoon Bigger Pockets,

I am seeking advice on the best strategy to scale my rental portfolio.

In the last 2 years I have completed a 10-31 exchange of an out-of-state property and sold an out of state property that my late father deeded down to me a year and half ago.

The 10-31 property is paid off and coming up on its first year of being rented and the tenants renewing for another year. Speaking with our qualified intermediary, they encourage no transfer to an LLC or sale until after 2 years to not raise any red flags.

I currently hold the proceeds of roguhly $130k from the inherited property. My brother in law and I did put an offer down a townhome but the deal fell through. He comes to the table with $70k. 

In 2026 my mother who lives nearby, will be moving into a independent care facility. Her home is valued at roughly $400k with no mortgage. Upon discussion with my family, property manager, and real estate agent, we find that renting for $2400-$2600 is not the best strategy. Along with high property taxes we have here in SC and maintenance cost, we have decided to list he property once vacant. 

With $130k in proceeds from a recent sale, $70k from my brother in law, and a potential sale price of $400k, I'm looking at what the best strategy is for scaling with this available cash. 

Our 10-31 property is a townhome and we are seeing more and more townhomes be built in the area. Generally, we can find a 3bd/2.5bath townhome for $210-$240k that can rent for $2k/month (not 1%, but close). We're open to a multi family but there's not a lot of inventory and they go quick. 

I'm not looking for a blueprint or playbook on what to do here. I have learned over the last couple of years that leveraging is key and making sure the deal makes sense. Property taxes are high here in SC, specifically our local counties, with this being the largest expense outside of major maintenance or repairs. 

Would you look for 2 to 3 single family homes? 2 to 3 new build townhomes? Or would you say multi family is the way to go and just be patient. Or am I looking in the wrong direction?

Lastly, what would you look to borrow on each property or all together along with the available cash to give the best opportunity? Would to aim to leverage anything on the 10-31 property?

Any guidance or advice is greatly appreciated.