re: Rental Property Financing – Real World Question/Options

My recommendation is to s!ow your roll a bit. Your plan is pretty aggressive for someone new to it.

Being in construction and owning properties are 2 different things. I have had rentals for 20 years, although never as many as the numbers you mention, and there is a learning curve. I had about a dozen units a few years ago, and am slowly selling them now. You will likely make less than you think. Unexpected/unaccounted for expenses occur. For me, having ample liquid assets is key to preventing stress from the expenses. Numerous times, I have replaced an HVAC system or spent large amounts on plumbing and septic systems. HVAC can run $10k or more. A new roof is expensive. Insurance, taxes, loss of rent between renters can be expensive in addition to maintenance costs.

Also, make sure you understand how to capture all expenses for taxes. For example, unless buy company vehicles, you can deduct gas expenses for your personal vehicles. You can do this thru gas receipts or a mileage log where you log trips. This includes any trip to Walmart, Lowes, the bank, and even to restaurants that are business related. An informed tax accountant is your friend. Good luck.