BiggerPockets

Hello, is this a realistic 3-5 year goal with SFH rentals? Please share your opinions and strategies. Thank you.

The only way to make this money is to work smart and hard, 40 pluse hours a week. Ask your self. Are you Commited to working the hours and a program that will get you there day in and day out ?Also are of integrity and an honest with people person? Will you make eonugh phone calls each day to make 2 offers everyday? Are you willing to help other s do the same.?
If you can say yes to each question, then yes.

It is possible. But as Bryan said there are certain variables. Now you do not need to have $20 million in cash. You could do it with much less starting capital. But also there needs to be the supply in the market your looking at, or would you be going to multiple markets? Also would you be self managing or hiring property management company? ( this would significantly lower your cashflow but if you find a good company would allow you to purely focus on acquisitions )

You can certainly start with less, but you will need about $20M in equity roughly to get that kind of cash flow. At the very least you will need $10M or so if you want to manage rentals in da hood with closer to 10% yields.

Greg - if you are netting $90K a month. Then you could easily buy 2 homes per month cash that rent for, say, $800 month. That's $1,600/month additional each month, over 60 months that would be $96,000 gross cash flow per month.

Now of course there are many other factors, like other expenses, vacancies, etc, but your target is really not far off given your current monthly profit.

Of course I do not know your monthly lifestyle either so that may trim things down a bit if you have extreme monthly bills and a high end lifestyle.

I agree with you Bryan.

Agreed. I think the plan may be to keep flipping and buying rentals. Then leveraging the rentals to buy more rentals meanwhile, flipping to buy more properties. lol..

Yes, how I love to feel greedy.. sigh..

He is talking about flipping I am not.

This is what I am finding.

Example. Buy duplex for 40k with 10k rehab. Total cost 50k

Refi after it is tenanted ( appraisal comes back around $100k ) I do all commercial loans so my LTV is 70% which mean roughly I will pull out $67k ( 3k closing costs ) which is an increase of my original cash by 17k.

He said cash flow, he did not indicate specifically profit.
I looked at it like this:
$1,000,000 / 12 months = 83,334 per month in cash flow.
3 bedroom SFHs in my area are running around 40-50k and rent 1100-1200/m
So, 83,334 / 1150= 73 (rounded up)
73 * 40 = 2,920,000
73 * 50 = 3,650,000

At least between there if you're look at my amounts as far as paying cash.