Real Estate Investor · Reno, NV · Member since 2016 · 71 posts · 67 votes
How much capital would you need to raise to make a reasonable investment and make $200k a year. I not taking about getting some miracle deal or something out of the ordinary. Just a average or slightly above average investment that could be found in today’s world.
Real Estate Coach · Joplin, MO · Member since 2017 · 13 posts · 65 votes
5y
Our investment company makes $250k on each $50k we have invested in current holdings each year. We make a consistent average of 400% return on each dollar invested in real estate. BUT we only buy title defected properties, and spend an average of 10% of appraisal. Once you learn to cure title defects and strip liens, there’s an unlimited amount of properties to buy. Don’t run from title issues, educate yourself on curing techniques.
Rental Property Investor · Camas, WA · Member since 2020 · 284 posts · 202 votes
5y
@Tj M.
You've received a very diverse group of answers. But the variance seems to be how much risk you are willing to take on and if you can develop your own value add. Whether that's STR, LTR, flipping, investing in stocks, dividend or otherwise.
The ideal question I started to ask myself and my wife is:
What can we do to reach the income level we require to impact our lives and the lives of others?
Then back up from there to how to build each block of that income.
There are limitless strategies. If you just wanted a simple proforma you could look at some of the turnkey providers from different markets. Or as others pointed out historical stock returns.
Rental Property Investor · Mooresville, NC · Member since 2016 · 19 posts · 15 votes
5y
Our cabins are located in the Pigeon Forge area. We had a bunch of cancellations in March, but I was able to rebook at lower rates. Since mid April I have been raising the rates after any cancellations and we have had +90% occupancy. Prices have appreciated significantly since we bought just two years ago, so your initial investment will be higher. Avery Carl runs The Short Term Shop real estate agency if you are interested in the area.
Real Estate Agent · Sisters, OR · Member since 2014 · 1k+ posts · 1k+ votes
5y
In my area for a buy and hold guy such as myself 6%-7% is a realistic COC number. So that would come out to about 3 million or so. I would find the asset class and location your comfortable with find the COC% and just do the math. I will tell you it is a little depressing.
The most important thing to emphasize is the longer you own real estate the better it does. So it might take 3.3 to get you that today but if you invested 1 million 7 years ago you be very close if not already making 200k.