Dr Newby looking to expand equity
I have been an accidental landlord for a while , took over a 600 acre farm in Kansas and have been leasing it out for about 20k/yr --no mortgage and about $1500 in taxes and $15/mo for water. Now live in Colorado Springs, and own a home here practicing as a surgeon. I have about 2 million in equity in real estate and 300k cash. I do not want to touch retirement saving of about 2 million in stocks. I am building a team for real estate investing--interviewing investment brokers, getting mortgage set up with my financial guy, interviewing contractors/handymen. I do not need cash flow at the moment, I would like to continue building equity and use for tax advantages of depreciating assets. The market is expensive here but softening substantially, I got 15% off asking of my private residence 1 yr prior for example and negotiated a 5.3% 15yr fixed for 700k on the property valued at 1.7 million (the rest was paid in cash). I really do not have the time, experience or desire to be a hands on landlord for inexpensive housing. Do you think it is better to manage multiple doors that I can do monthly rentals for medical professionals in at need areas ( think Pueblo, CO) or more log cabin/acreage for STR and monthly? Just not sure what makes the most sense in terms of a buybox. Tks
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One option to consider is placing your capital as an LP with an experienced GP/operator who has the team, deal flow, and management already in place. In this model:
You invest in a value-add property the GP acquires and improves.
Once stabilized, the GP refinances, returns your original investment, and you keep your equity stake.
You then reinvest your returned capital into the next deal.
After repeating this a few times, you could have equity in multiple larger properties with zero net capital invested.
This approach lets you benefit from tax advantages, cash flow, and appreciation across several quality assets without being a hands-on landlord. You just find the one trusted gp to deal with that has a team built and a proven system in place.