Starting to Write My Plan

[Nan Wilson]

I'm not sure that I'm going about this in a useful way. I've heard lots of advice that I need to write out my plan. Is this the idea....

by 12-31-2018 i will be receiving $50,000/year in cash flow from real-estate investments

how i'll get there:
october 2013 purchase our house/9810 for $235k, $50k down, 5%interest, 30 yr amortize, 5year balloon
rent out one BR as BandB, or permanent roomer. put his income into llc?
by 12/31/2013 purchase condo for dad and yvonne, 2br, up to $150K, min $30k down (from aunt nan's estate)
real-estate license in texas?
by 12/31/2014, get conventional loan on 9810, take equity and purchase 3/2 sfr for rental, or small mfh in lower mid range

by 12/31/2015 purchase move out of 9810, and rent for minimum $1500/month

[Tom Sylvester]

@Nan Wilson - First off, it is good that you are thinking about a plan. Too often people get started without one and it is much more difficult. It is good that you have your goal ($50,000/year in cashflow) and a date (12/31/18).

From that, I would suggest working backwards.

How much in cashflow for the following?

12/31/17
12/31/16
12/31/15
12/31/14
12/31/13

Something like this (Your numbers may be different):

12/31/17 - $40,000
12/31/16 - $30,000
12/31/15 - $20.000
12/31/14 - $10,000
12/31/13 - Plan defined and looking for first property.

Once you have that, you now have measureable targets that align with your final goal. Now draft a plan for how to get there.

$10,000 in cashflow year 1 required $833/month in cashflow (after mortgage, insurance, taxes, maintenance, etc). Does that look like 1 single family home in your area that will cashflow $833/month? A duplex with each unit cashflowing $416/month? A 4 plex with each unit cash flowing $208/month?

By continuing this process, you will have created a guide that leads to your goal. I like to put these into mindmaps (search for it on google).

Good luck.