Is seems that the market is great right now for investors to buy, fix and rent. My goal is to have 20 SFH rentals free and clear in 15 yrs or less. By the way the market is now, I’m tempted to “throw balls to the wall” and buy as many as I can within 12 months. Probably not a good idea, so what would be the best strategy to reach my goal, a blueprint if you will? I’m in the middle of selling my primary residence, then rent for a couple years too.
Thx!
This is a good time to buy and hold in a lot of areas. I would suggest developing a written plan with YOUR criteria for purchasing the properties. Your plan should describe exactly how much you will pay for the properties and the minimum cash flow you will accept, using a cash flow analysis with Real World Numbers. Buying the right properties will help you meet your goal. Buying the wrong properties will be a disaster.
Mike
Thanks! I have a pretty good idea, but it’s not concrete. I want to keep my range between 20-80K or so. Once I put it all on paper EXACTLY what I want to do, then it should crystallize in my head.
Another question. I saw somewhere on here that if someone has excellent credit, they could literally buy as many properties as they can handle.
Can you buy like this using conv. loans or were they talking about HMLs or other non-conv loans?
Mike,
I’ve been getting confused on what exactly buying a property 70% below the market means NUMBER wise. I understand that buying below the market would be buying a house appraised for $100K for $80K. So 70% would be… buying an $100K house for $70K? I think I’m correct but I must be sure.
Serio,
You are absolutely correct, buying a house at 70% of market value would mean buying a $100K house for $70K. However, I only buy when my cost (meaning purchase price and rehab costs) is 70% or less of the market value.
Mike