16 long term rentals at 33% ltv, need guidance

16 long term rentals at 33% ltv, need guidance

Flipper/Rehabber · Orange, CA · Member since 2012 · 68 posts · 63 votes

Hello everybody,

I currently own 12 rentals out of state average purchase price is approximately 65,000 each average income is $950 a month per property

I also have four long-term rentals in California combined value of approximately 1.5 million with loans of approximately 580,000 average rents is approximately $1900 per house

My ultimate goal in. The next 10 years is the own 100 rentals And live off of the positive cash flow

My question is what is the best way to scale my portfolio reasonably over the next 10 years

For the past 10 years I have just been doing the BRRRR strategy, Would it make sense to just do this team strategy on a little larger scale?

For example what is it comfortable LTV to maintain over all of the properties and how much liquid cash should I have per property put away in case of vacancies repairs and unforeseen circumstances?

What are the most ideal lending relationships I need to create and can anybody point me in the direction of someone who has grown a similar portfolio in a similar timeframe?

The homes that I ike to buy right now gross 16 to 20% per month and net approximately 11%

I have always shied away from too much leverage because I was really hit hard in 2008 through 2010 and I still remember those dark days

Any advice or feedback would be greatly appreciated

Thanks

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  • Kerry Noble JrPro Member
    Investor · Indianapolis, IN · Member since 2018 · 2k+ posts · 1k+ votes
    4y

    Does your portfolio have to be single family? can it be multifamily?

    couple things that come to mind is the stacking method. so you have 12 out of state compound that and add 12 more in 2023.....in 2024 you will have 24 total, compound that and buy 24 in 2024.....youll have a total of 48. 

    and another thought would be to find a larger apartment building possibly in your out of state market and then 1031 into it. 

    idk your out of state market but lets say you come across 50-70 units. 1031 your portfolio into that deal and youre more than halfway there. 

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