Looking for 1000$/month cashflow properties & creative financing

Looking for 1000$/month cashflow properties & creative financing

Developer · Newport, NJ · Member since 2019 · 50 posts · 43 votes

Hi everyone,

So 6 months ago I had close to 100,000$ saved including my 401K for real estate purchase. Out of this, close to 40000$ was cash and crypto. Over the past 2 months, my financial life became quite bad and I lost almost all of this cash. I still have 15,000$ but all of that is stuck in crypto which I may never get back. Fortunately I still kept investing in 401K and saved upto 70,000$ in it. 

I feel lucky that I got my life back on track and starting saving a lot again. However, it made me realize that I was so vulnerable depending on a job and it is something that I want to change aggressively over the past year or two. I decided my per month cashflow number which will be enough for me to leave a job.

My monthly cashflow number is 6000$ out of which 1000$ I achieved by investing in a rental arbitrage property. I now have to make 5000$ using real estate. I am looking for markets where I can make close to 1000$/month in cashflow and still be in budget. I know a lot of people use creative financing and buy properties with no or very less money down.


If there are people here who can help me out reach this goal by guiding me, it will be a huge favor. 

Thanks
 

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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3y
Quote from @Vivan Bhalla:

$1,000 cashflow per month (after all expenses and reserves) is uncommon. It's even more uncommon today with the high purchase prices and mortgage rates. Even in a favorable market like 2012 - 2018, $200 a month cashflow was more common.

To be honest, if I stumbled across a property that cashflowed even $500 a month, I would buy it. I certainly wouldn't hand it off to a stranger on the internet (no offense).

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  • Realtor · Chicago, IL · Member since 2019 · 274 posts · 191 votes
    3y

    Hi @Vivan Bhalla- I am all for an ambitious goal! Have you considered mid or short term rentals to help you to achieve it? Good luck!

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Vivan Bhalla:

    $1,000 cashflow per month (after all expenses and reserves) is uncommon. It's even more uncommon today with the high purchase prices and mortgage rates. Even in a favorable market like 2012 - 2018, $200 a month cashflow was more common.

    To be honest, if I stumbled across a property that cashflowed even $500 a month, I would buy it. I certainly wouldn't hand it off to a stranger on the internet (no offense).

    The DIY Landlord Book4.7248 Reviews
  • Contractor · Scottsdale, AZ · Member since 2010 · 2k+ posts · 3k+ votes
    3y

    So in summary, you have no cash to invest. Your first step is you need to start saving again.

    After you save up some cash, using leverage, you'll be lucky to find deals that cash flow $100 per month, let alone $1000 per month.

    My point isn't to discourage you. Just understand that somebody in your financial condition is going to need to put in a decade of hard work to reach $5000 per month in cash flow. 

  • Jaron WallingPro Member
    Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
    3y

    @Vivan Bhalla Love the energy man. REI is the slow grind and you'll be hard pressed to find/buy/create a deal that cash-flows $1000 per. We're in a cash-flow market and investors try to buy our stuff. We renovate and rent SFH and cash-flow roughly $150-250 per month. It's a good base hit. With leverage we don't predict anything better given our locations and these crazy prices.

    I started with $30k cash and market research. I then read 3 books on REI and rehabs (don't enjoy reading but I forced my self to try).

    "Building Wealth one house at a Time" - by John W. Schaub is good read. It's straight to the point, strategy, NUMBERS, and general metrics investors need to know before buying property. 

  • Developer · Newport, NJ · Member since 2019 · 50 posts · 43 votes
    3y
    Quote from @Olivia Radziszewski:

    Hi @Vivan Bhalla- I am all for an ambitious goal! Have you considered mid or short term rentals to help you to achieve it? Good luck!


    I believe the STR market is getting very saturated now. I tried one rental arbitrage in Los Angeles and it was not so good

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