Updated almost 12 years ago on . Most recent reply
New Year plan and introduction
Hello everyone,
My name is Ben. I've been a long time lurker and have finally decided to start investing in real estate. I've been reading about the 2 percent and 50 percent rule and researched on different locations for properties that cash flow. Unfortunately, I live in a city that is not so great for that so I am going to be an out of state investor.
My goals for the next few years is to acquire as many properties as I can that cash flows of at least 300 a month. My goal is to create passive wealth of at least 6,000 a month gross which should be roughly 20 properties. Currently, I live in a condo that is paid off with no debt. My net take home is $10,000 a month. From my research, I've seen properties in a few cities that generate rent that is 3 percent of the selling cost and these properties go from anywhere between 20k - 50k. I'm looking for advice on what is the best way about building a RE empire. I know that there are risks in C grade neighborhoods but just like any investment, there are always risk so I am okay with that. I plan on getting a conventional loan and putting down 25 percent and buy a few properties every year. Any feedback would be great!
Would you suggest lower grade neighborhoods for higher cash flow, or better neighborhoods, higher quality tenants but less cash flow?
Cheers,
Ben