So my wife and I have 4 rental properties. I’m 38, she’s 31. I’ll give a quick breakdown that pertains to my question. The payments I mention are just mortgage, taxes, and insurance, nothing else.
Residence: Single Family 4/2.5: 30 year fixed: 3.75% / $195k owed - payment: $1180 a month
Rental 1: Single Family 3/2.5: 30 year fixed: 4.75%/ $65k owed - payment: $460 a month / monthly rent: $900
Rental 2: Single Family 3/2: 30 year fixed: 5.00% / $42k owed - Payment: $411 a month / monthly rent: $820
Rental 3: Single Family 3/1.5: 30 year fixed: 4.375% / $43k owed - Payment $365 a month / monthly rent: $800
Rental 4: Triplex - all 2/1: 30 year: 5.25% fixed until 10/17, then ARM / $93k owed - payment $700 a month / Monthly rent total: $1375
I try to keep a $20k rental safety net to draw on for expenses and vacancies, which I then replace and bring flush again with the next months rent. I don’t currently have my properties in an LLC, but I do have a $1.3 million umbrella liability policy which covers each property. I do plan on eventually putting them in an LLC.
I’ve acquired all these properties over the last 3 1/2 years. I’m still very interested in continuing to purchase more rental properties as time goes on. But banks are not interested in helping me continue on with another rental until we pay at least one of the properties off or increase our income, which is currently around $130k not figuring rental income (job income most likely will not increase much). On the last purchase I had to do some convincing to get into the triplex with a smaller bank’s in-house loan.
Now this next year, as long as everything goes alright, we will be paying off both our vehicles and the remainder of our student loans, which will free up around $1500 a month. I was considering adding that money to monthly rent income and putting it all towards a property until it’s paid. Rent income on a perfect month would be around $1900 plus the $1500 would put us at $3400 a month to pay extra towards a property, on a good month of course. Then we’d purchase another property and repeat the process. This is a relatively slow way to go about it, which is why I’m coming to the forum. Is there a better way to go about this in a quicker manner because there are some great deals out there that pop up from time to time and currently I have to let them pass on by. Thanks.