Accidental investor with 20 units

[Amar P.]

Hello, I got into rental real estate somewhat accidentally. I purchased a couple of duplexes from a relative who was looking to exit and was willing to finance my first deal at 3.5 percent. At the time, I did not fully appreciate how strong that opportunity was.

Fast forward to today, I now own eight townhomes and a 12 unit property. This has been a side business for me. Most of the properties are currently managed by a property management company at around 10 percent. All of the units are in solid locations. I am based in the Greencastle/Chambersburg area, not Philadelphia, but had to select Philly on this platform due to limited location options.

Over time, I have learned a great deal through experience. I recently refinanced the 12 unit from a private lender to a bank at 6.1 percent. I was able to pull out about 85 percent of my original purchase price, and the property appraised at $1.3 million.

At this point, I am focused on two things:

1. I am actively looking for another multi unit property within my area or potentially within a  50-100 mile radius, as I have capital ready to deploy. For those who have done this successfully, what has worked for you in actually finding deals in the current market? Most of what I read focuses on strategy or ideal scenarios, which feels very different from today’s reality.
2. If I do not find a deal in the next couple of months, I am considering paying down at least 50 percent of the loan to reduce interest costs. Most of my townhomes are already paid off, except for three that are at 3.5 percent, which I plan to keep as is, along with the 12 unit. I would also consider refinancing if rates improve from the current 6.1 percent.

My goal is to connect with local group(s), learn from others, and share insights. I am not interested in paid courses or seminars, just practical, real world perspectives.

If anyone is active in the Harrisburg, Carlisle, or Greencastle area, I would appreciate any recommendations on groups, meetups, or networks to plug into.

AP

[Christian Hwang]

You’ve built a solid base, especially from a start that sounds more accidental than planned.

On the deal side, the part I keep coming back to is your 50–100 mile radius. What made you land on that range?

I only ask because sometimes expanding the search feels productive, but it can also pull you away from the local advantage you already have.

And if the right deal doesn’t show up, paying down a 6.1% loan doesn’t seem like a bad outcome either. That’s a pretty solid guaranteed return in this environment.

Curious what’s driving the radius for you more — better deal flow, diversification, or just wanting to stay close enough to manage?