100 Doors in 5 Years!
Hello All!
I'm hoping to dip into the collective wisdom of BP and get some input on my high-level REI plan, below. Any and all comments, suggestions, and clue-by-four-ing much appreciated!
WHAT
Goal: To own 100 rental units each cash-flowing min $100/mo within five years.
WHEN
2018 = 100 doors
201x = ???
2014 = 3 doors
WHY
- Why? To provide passive income, make full-time work optional, and escape the cubicle.
- Why? To gain financial independence and the freedom to live life on my own terms.
- Why? To be fully dedicated to my family, have time for hobbies and other endeavors, and contribute to the world in a positive way.
- Why? To live a happy life!
HOW
I have no idea how I will go from zero experience to 100 doors in 5 years. However I do know that without a specific stretch goal, simply dabbling in this new field will not get me to where I want to be. This thread therefore serves the triple purpose of committing my thoughts to paper, soliciting feedback from those more experienced, and putting me on the spot in front of the community to commit to my goal - and deliver!
A few rough ideas on strategy:
- I intend to keep my day job for at least the next 5 years. My wife and I make a decent income which should allow us to purchase 3-4 properties a year, as well as re-invest all cash-flow into mortgage payoff and new properties.
- Since I currently live abroad and will have to invest long-distance regardless of location, I have the flexibility to pick my target market based only on the macro trends, financial issues (tax etc.), deals availability, and the quality of the local team I'm able to pull together. This will be the subject of another post.
- Putting together the right team will be a major focus. Agent, inspection, lender, PM, etc.
- Financing will be the other major focus. I want to maximize the first 4 loans that I should be able to get conventionally. Preferably do these with a bank that also does portfolio lending to build a relationship there. Then focus on portfolio loans, private money, and seller financing.
- Deal flow would initially be off MLS, agent, turnkey provider. But branching out quickly into direct marketing, once I've worked out the mechanics and have a solid process for financing and management.
- To maximize the return on time invested, aiming to focus on multi-family properties (2/3/4 units) to allow me to reach my goal with less total transactions (less loans, less overhead, etc). Possibly 1031 to a larger commercial-sized apartment complex in the future.
Well, there it is at a high level. Thanks for reading this far, and if you have any words of wisdom to share, I would be eternally grateful.
Looking forward to connecting with the many great people here, and to the challenges ahead!
-Dmitri (100D/5Y)