All Forum Posts by: Bradley Benson

Good afternoon Bigger Pockets,

I am seeking advice on the best strategy to scale my rental portfolio.

In the last 2 years I have completed a 10-31 exchange of an out-of-state property and sold an out of state property that my late father deeded down to me a year and half ago.

The 10-31 property is paid off and coming up on its first year of being rented and the tenants renewing for another year. Speaking with our qualified intermediary, they encourage no transfer to an LLC or sale until after 2 years to not raise any red flags.

I currently hold the proceeds of roguhly $130k from the inherited property. My brother in law and I did put an offer down a townhome but the deal fell through. He comes to the table with $70k. 

In 2026 my mother who lives nearby, will be moving into a independent care facility. Her home is valued at roughly $400k with no mortgage. Upon discussion with my family, property manager, and real estate agent, we find that renting for $2400-$2600 is not the best strategy. Along with high property taxes we have here in SC and maintenance cost, we have decided to list he property once vacant. 

With $130k in proceeds from a recent sale, $70k from my brother in law, and a potential sale price of $400k, I'm looking at what the best strategy is for scaling with this available cash. 

Our 10-31 property is a townhome and we are seeing more and more townhomes be built in the area. Generally, we can find a 3bd/2.5bath townhome for $210-$240k that can rent for $2k/month (not 1%, but close). We're open to a multi family but there's not a lot of inventory and they go quick. 

I'm not looking for a blueprint or playbook on what to do here. I have learned over the last couple of years that leveraging is key and making sure the deal makes sense. Property taxes are high here in SC, specifically our local counties, with this being the largest expense outside of major maintenance or repairs. 

Would you look for 2 to 3 single family homes? 2 to 3 new build townhomes? Or would you say multi family is the way to go and just be patient. Or am I looking in the wrong direction?

Lastly, what would you look to borrow on each property or all together along with the available cash to give the best opportunity? Would to aim to leverage anything on the 10-31 property?

Any guidance or advice is greatly appreciated. 

@Patrick Roberts thanks for your reply. We have equity in our primary home but have not taken out a HELOC, so this would be a new line for addressing the balance. What are the chances a lender would call or cancel the line?

I don't see where we would loose the line. However, I do not see our family staying in our current home long term. When I talked to my realtor he had some hesitation on using the HELOC and it tying us to our current home.

@Ghassan Jabali I appreciate your reply. To clarify, the prior property in the 10-31 is fully paid off. The new investment property is higher in cost by $40k. I'm trying to be strategic in decisions as I'm trying to grown my investment portfolio. However, overthinking could get the best of me at time.

Currently have an outstanding rental property balance of $40k, via 10-31 exchange (prior property paid off). I'm trying to decide on using accessible cash or taking out a HELOC on our primary home to payoff the rental.
 
HELOC would be a fixed rate of 6-7% on a  10-year term. 

My thoughts...taking out the cash can potentially hinder future opportunities such as a house flip that I could use the cash on. The HELOC could be utilized more wisely in other potential investment situations.

Any other suggestions?

@Drew Sygit I appreciate that, great way to look at it!

@James Wilcox 👍

@Lauren Robins thank you!

I know there are different threads on property management programs, however I am looking for suggestions on a platform that also offer banking with a HYSA. From the research I've done, brick and mortar or even online banks don't offer HYSA for businesses/LLC. Correct me if I'm wrong!

I have been looking at Baselane and Stessa due to other reccomendations as a solid property investor service with a fairly decent HYSA percentage (as of April 2025). Do any of you advise against mixing rental property banking with management programs? Is a HYSA not a make or break?

Some other programs I looked at are Tenant Cloud, Avail, Rent Redi. Is there any other ones to consider at this time? I see a lot of mention of Quickbooks but from what I've seen is that it does not translate easily for a property investor. 

I have 2 rental properties that are local to me and hope to add in the future. 

Any input is greatly appreciated. Thank you

Hello Bigger Pockets community! I am new to the forum. I recently completed a 10-31 exchange and purchased a new townhome in Lexington, SC. Prior to making this purchase I briefly reached out to a few attorneys to ask about assistance with drafting a lease (not much luck). I was then directed by a close realtor friend on a property management company who could provide 2 types of services, 1) Marketing only (list, screening, onboarding, and lease signing) that is owner managed or 2) Fully managed property. I went with option 1 and it turned out great, they were able to secure a tenant within 30 days of listing and the tenants have been great. The cost is a full months rent. I have no regrets on utilizing this service to start out but I have come to find that there is some great full service platforms (Stessa, Tenant Cloud, Avail, BASELANE, etc) that provide the same services but at a fraction of the cost. Also, I plan to use one of these platforms and don't want to duplicate a utility. 

I live local to the rental property and don't see the need for full blown property management at this point. I'm looking to maximize the return. 

Are the online investor friendly platforms, like the ones I mentioned above, easy to list properties for rent and screen tenants? Do you trust the lease agreements they provide (I understand lease language can vary and should be reviewed), but is one better the other?

Lastly, do you reccomend me doing this as much on my own while utilizing an investor friendly management program?

I appreciate any input. Thank you.