Most investors use a method called "The Stack," where they double their unit count with each move: start with a single-family home, move to a duplex, then a fourplex, then a 10-unit apartment.
Always factor a 10% property management fee into your math before you buy, even if you plan to manage it yourself initially. This ensures the deal still works when you eventually hand it off.
Decide if you want 10 houses in one city (easier to manage) or 10 houses across three states (protects against local economic downturns). 4. Transitioning to Professional Management
As your portfolio grows, talk to an attorney about holding properties in LLCs to insulate your personal assets from lawsuits.
You cannot personally manage 10+ properties without it becoming a full-time job.
Create a "playbook" for how you handle tenant screening, maintenance requests, and late rent. 5. Risk Mitigation
Once you hit your limit, you’ll need "Portfolio Lenders" (usually local community banks). They keep the loans on their own books rather than selling them to Fannie Mae, allowing for more flexible terms.
Buying Multiple - Rental Properties
Most investors use a method called "The Stack," where they double their unit count with each move: start with a single-family home, move to a duplex, then a fourplex, then a 10-unit apartment.
Always factor a 10% property management fee into your math before you buy, even if you plan to manage it yourself initially. This ensures the deal still works when you eventually hand it off. buying multiple rental properties
Decide if you want 10 houses in one city (easier to manage) or 10 houses across three states (protects against local economic downturns). 4. Transitioning to Professional Management Most investors use a method called "The Stack,"
As your portfolio grows, talk to an attorney about holding properties in LLCs to insulate your personal assets from lawsuits. Decide if you want 10 houses in one
You cannot personally manage 10+ properties without it becoming a full-time job.
Create a "playbook" for how you handle tenant screening, maintenance requests, and late rent. 5. Risk Mitigation
Once you hit your limit, you’ll need "Portfolio Lenders" (usually local community banks). They keep the loans on their own books rather than selling them to Fannie Mae, allowing for more flexible terms.