Scaling up your Rental Portfolio

Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes

1y

@Amier Tutie You're in a great position! There's plenty of ways to pull equity but most cost you money. It depends on your long term goals with REI. You didn't say anything about selling but have you thought about a 1031 exchange or selling a dud property (if you have one) to capitalize on the next opportunity? Very few investors hold every property forever.

If you don't sell the better option is DSCR loans. The rates are great and it's based on the performance of the property. Not you personally. You can close a DSCR loan quick and seasoning is <3 months for most lenders I see.

I like the saying "just because you can doesn't mean you should". We sold a SFH two years ago with a 3% fixed rate. The future capex and potential for never ending "repairs" as a rental wasn't worth the cash-flow. We used the equity for a DP and bought a way newer property.

Think about your equity position vs. cash-flow. Maybe you choose to sell something and buy a duplex or tri? That can to get you to 10 doors way faster than buying SFH. That's basically where my wife and I are right now. We're aiming for duplexes, or flips for some quick money.

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Amier Tutie
OP
Rental Property Investor · OH · Member since 2023 · 4 posts · 7 votes
1y
Quote from @Jaron Walling:

@Amier Tutie You're in a great position! There's plenty of ways to pull equity but most cost you money. It depends on your long term goals with REI. You didn't say anything about selling but have you thought about a 1031 exchange or selling a dud property (if you have one) to capitalize on the next opportunity? Very few investors hold every property forever.

If you don't sell the better option is DSCR loans. The rates are great and it's based on the performance of the property. Not you personally. You can close a DSCR loan quick and seasoning is <3 months for most lenders I see.

I like the saying "just because you can doesn't mean you should". We sold a SFH two years ago with a 3% fixed rate. The future capex and potential for never ending "repairs" as a rental wasn't worth the cash-flow. We used the equity for a DP and bought a way newer property.

Think about your equity position vs. cash-flow. Maybe you choose to sell something and buy a duplex or tri? That can to get you to 10 doors way faster than buying SFH. That's basically where my wife and I are right now. We're aiming for duplexes, or flips for some quick money.

So we did think about selling, but we do not necessarily have any dud properties. Each one is cash flowing great, with relatively low mortgages/monthly payments, and we know the houses well enough where there are hardly any repairs needed (especially with the couple that we have lived in before and made into rentals).
We are trying to see if we can hold onto the 4 that we have and buy more to add to that portfolio. So right now it seems that DSCR Loans are the way to go.
Thank you for your insight, I appreciate it!
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Drago Stanimirovic

New to Real Estate · Miami, FL · Member since 2024 · 1k+ posts · 441 votes

1y

Hey Amier,

You're in a great spot, strong rentals, zero vacancies, and a solid flip about to clear your debt. Since your properties have low rates (3.5–4.5%), I'd avoid cash-out refis for now. Instead, consider a DSCR loan to tap into your equity without touching those low-rate loans. It's a smart way to scale using your rental income as the qualifier.

With $25K and the right lender, you could leverage up to 80% LTV on a new rental. That could easily get you into property #5 and keep you on track for 10 by age 30.

Let me know if you want help running numbers or seeing what you qualify for.

Drago

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Caleb Barney

Realtor · Strongsville, OH · Member since 2017 · 32 posts · 19 votes

1y

Hi Amier!
Congrats on the rentals and the sale!
I'm trying to make sure I understand this, but you're saying the money from your Strongsville sale will pay off the loans on your rental properties too, correct? (I'm reading this as paying off car loans, CC debt, and mortgage debt with the exception of the Fairview Park property)...

If that's the case, and you have interest rates at 3.5, 4, and 4.5%, instead of paying those off, just use the money from your Strongsville sale to buy another rental.

Is that a live-in-flip or standard flip? If it's just a standard flip, I agree with Jaron with considering a 1031 exchange.

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Joshua JanusBusiness Member

Realtor · Cleveland, OH · Member since 2021 · 1k+ posts · 1k+ votes

1y

Quote from @Amier Tutie:

Hello, so first time posting, always reading and listening. Here is my current layout.

I own 4 rental properties, all cash flowing great. Have not had any vacancies in the last 5 years, steady rent increases, all going too well haha.

We bought a house in Strongsville in 2023 and on track to have it sold in May 2025. Bought for 250K, contracted to sell for 429K. This house will pay off ALL of our debt. No more car loans, credit card debt, all of it except for the new mortgage on a house we bought in Fairview Park (to which we also got a great deal, needs flipped)

Some of my rentals I bought back in 2019, 2020, 2021, I am trying to figure out at what point is it worth it to cash out refi to buy more? I enjoy the cashflow from all of the rentals and the interest rates are low (3.5, 4, 4.5%) but trying to consider pulling equity out to buy another rental. With the sale of the house, we should have 25K leftover after everything has been paid. Not nearly enough to buy another rental with needing to show cash reserves for the rental properties.

Just want to know what would be a good direction to keep scaling as I plan on hitting 10 properties by the time I am 30 ( I am 27 now) so I want to make this ambitious goal a reality.

Any information, stories on how you did it, any feedback would be greatly appreciated.

Thank you!

Congrats on your success so far in your investing in Cleveland! That sounds like a great spot to be in.

If you have the right team in place (management, construction, financing etc.) look for deals where you can capture equity via the BRRRR method. Then flip every few to keep the machine moving. I've been doing this the last 3 years in Cleveland well over 100 times.

[email protected]614-502-5316 Podcast Guest on Show From DoorDasher to $1.5 MILLION in Real Estate (All at 22 Years Old!)

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Benjamin AakerPro Member

Rental Property Investor · Brandon, SD · Member since 2015 · 1k+ posts · 1k+ votes

1y

Good job getting started early. Have you considered moving into multifamily properties? The economy of scale is better.

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Dave FosterBusiness Member

Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes

1y

@Amier Tutie, If you're wanting to scale then I would suggest you find a different way to pay off your personal debt. Yes, that debt needs to be eliminated to give you ultimate flexibility. But if you use the proceeds from this sale to do that. You're leaving a down payment on the table that could be used to purchase that next property.

Just ball parking but you've probably got a $30K tax hit. If you do a 1031 exchange instead of just selling and paying off debt you'll get to keep that $30K and use it for your next real estate purchase.

If you simply sell the property youll pay the tax. and then you're talking abut using cash out refis to extend your portfolio. Do the opposite. Use the 1031 on this sale to buy another property. And do a cashout refi of something else to pay off that consumer debt.

Let the Govt do some of the work for you :). @Benjamin Aaker has been there and done it!!

The 1031 Investor5137 Reviews

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Benjamin AakerPro Member
Rental Property Investor · Brandon, SD · Member since 2015 · 1k+ posts · 1k+ votes
1y
Quote from @Dave Foster:

@Amier Tutie, If you're wanting to scale then I would suggest you find a different way to pay off your personal debt. Yes, that debt needs to be eliminated to give you ultimate flexibility. But if you use the proceeds from this sale to do that. You're leaving a down payment on the table that could be used to purchase that next property.

Just ball parking but you've probably got a $30K tax hit. If you do a 1031 exchange instead of just selling and paying off debt you'll get to keep that $30K and use it for your next real estate purchase.

If you simply sell the property youll pay the tax. and then you're talking abut using cash out refis to extend your portfolio. Do the opposite. Use the 1031 on this sale to buy another property. And do a cashout refi of something else to pay off that consumer debt.

Let the Govt do some of the work for you :). @Benjamin Aaker has been there and done it!!

Yes, sir, I have - moved from single family to multifamily and a big fan of the 1031 exchange. Thanks for your help with the 1031s @Dave Foster!

1 Reply

Melissa JusticeBusiness Member

Rental Property Investor · Phoenix, AZ · Member since 2024 · 518 posts · 1k+ votes

1y

Hey @Amier Tutie,

First off—huge congrats on what you’ve built so far. Zero vacancies in 5 years, steady rent increases, low interest rates, and a major flip that’s about to wipe out all your debt? That’s not luck—that’s smart investing and solid execution.

You’re in a strong position right now, and it's great that you're thinking ahead about when to leverage equity to continue scaling. Here are a few things to consider as you map out your next moves:

If the refi still cash flows well post-refinance
If the equity you pull can be deployed into a property with a higher ROI
If you’re targeting markets where appreciation + rent growth are trending upward
And you’re confident you can re-leverage without killing your monthly income

While $25K might not be enough to buy outright, it can still go far:

Use it for reserves to qualify for a DSCR or investor loan
Combine it with equity from a cash-out refi or HELOC to stack for a down payment (My company has HELOC resources that will offer lines of credit even on investment props!)
Look into new construction turnkey properties in the Midwest/Southeast with low entry points (~$20–30K down)

If your Fairview Park flip performs well, that might be your repeatable model:

Flip a house → pay off debt/build capital
Use that capital to BRRRR or acquire a turnkey with leverage
Repeat while keeping a balance between equity growth & cash flow

You’re only 27 and already 40% of the way to your 10-door goal. With your equity position and experience, hitting 10+ by 30 is absolutely within reach—especially if you stay disciplined with leverage,

target strong cash-flowing markets and build a power team in an investable market.

If you're not already, start lining up a DSCR lender, a market with entry points under $150K and a few off-market or turnkey deal sources.

You're doing amazing—keep your focus and scale smart. Happy to share more ideas or connections if you’re looking for lenders or markets that align with your next move.

Keep going, you're ahead of the curve. 🔥

Wishing you much success!

Best,

Melissa Justice, Investment Strategist at Rent to Retirement

[email protected]313-221-8718

1 Reply

Amier Tutie
OP
Rental Property Investor · OH · Member since 2023 · 4 posts · 7 votes
1y
Quote from @Melissa Justice:
Hey @Amier Tutie,

First off—huge congrats on what you’ve built so far. Zero vacancies in 5 years, steady rent increases, low interest rates, and a major flip that’s about to wipe out all your debt? That’s not luck—that’s smart investing and solid execution.

You’re in a strong position right now, and it's great that you're thinking ahead about when to leverage equity to continue scaling. Here are a few things to consider as you map out your next moves:

If the refi still cash flows well post-refinance

If the equity you pull can be deployed into a property with a higher ROI

If you’re targeting markets where appreciation + rent growth are trending upward

And you’re confident you can re-leverage without killing your monthly income

While $25K might not be enough to buy outright, it can still go far:

Use it for reserves to qualify for a DSCR or investor loan

Combine it with equity from a cash-out refi or HELOC to stack for a down payment (My company has HELOC resources that will offer lines of credit even on investment props!)

Look into new construction turnkey properties in the Midwest/Southeast with low entry points (~$20–30K down)

If your Fairview Park flip performs well, that might be your repeatable model:

Flip a house → pay off debt/build capital

Use that capital to BRRRR or acquire a turnkey with leverage

Repeat while keeping a balance between equity growth & cash flow

You’re only 27 and already 40% of the way to your 10-door goal. With your equity position and experience, hitting 10+ by 30 is absolutely within reach—especially if you stay disciplined with leverage,

target strong cash-flowing markets and build a power team in an investable market.

If you're not already, start lining up a DSCR lender, a market with entry points under $150K and a few off-market or turnkey deal sources.

You're doing amazing—keep your focus and scale smart. Happy to share more ideas or connections if you’re looking for lenders or markets that align with your next move.

Keep going, you're ahead of the curve. 🔥

Wishing you much success!

Best,

Melissa Justice, Investment Strategist at Rent to Retirement
Thank you! I appreciate the kind words and insight!
1 Reply

Kerlous TadresBusiness Member

Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes

1y

Hey Amier, congrats on your progress! To scale, consider a cash-out refinance on your existing rentals, as your current low interest rates (3.5%–4.5%) are great for pulling equity. Make sure any new property you buy will still generate positive cash flow after refinancing. With the $25K from the Strongsville sale, use it for a down payment or renovations on the Fairview Park house to flip it faster and buy more rentals. To reach 10 properties by 30, look into seller financing, partnerships, or value-add properties to boost equity quickly. Focus on cash-flowing and appreciating properties to build long-term wealth and meet your goal.

[email protected]614-490-1163

Kerlous Tadres | Reafco Real Estate539 Reviews

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Scaling up your Rental Portfolio

Scaling up your Rental Portfolio

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