Updated about 7 years ago on . Most recent reply
Low Cash on Cash Return and Buying Additional Properties
I'm a new investor and have been analyzing lots of deals and absorbing as much information as possible. Some of the properties I have found look like good investments that have cap rates about 10% and the cash flow 500-1000 each month. However, the cash on cash return is generally around 4-5%. I have yet to find a home run deal that would provide me additional capital to reinvest in other deals. Therefore, my down payments would quickly deplete my liquid capital. How do seasoned investors overcome this and find additional capital to keep building their portfolio? I'm sure there are many answers to this question but I'm looking for those that do not require lots of outside investment. Are there any common strategies to continue to build your portfolio?