How to Structure Financial and Portfolio Goals?

Question

Hi everyone,I’m currently reading Start with Strategy and trying to map out my approach, but I’d love practical advice on how to properly structure my financial and real estate portfolio goals. I’m unsure what a realistic target would be and how to balance equity, leverage, and cash flow. My cash flow goal was way off once I starting playing around with numbers in the the financial forecaster excel sheet that comes with the Start with Strategy book.

I learn best with examples so throwing out examples of numbers of what a bad goal would look like vs. a good one, or even very basic ways to calculate projected returns would be really helpful for me. Curious to see how everyone else is doing it!

Any insights, experiences, or resources would be greatly appreciated!

Thanks in advance!

Kerlous Tadres · Answer

Hey @Michelle Shahid, I’d keep it simple at first. For me, aiming for around $250 a door and 10–12% cash-on-cash was a great starting point. Underwrite a bunch of real deals, stress test them a little, and buy the one that still makes sense. Your goals get clearer once you actually own something and see how it performs.

Elealeh Fulmaran · Answer

You’re on the right track—testing goals in a forecaster is exactly how you find reality gaps. Two quick tips: set targets from your life math first (how much monthly freedom you need and by when), then back into a simple portfolio mix and leverage plan that hits that number with conservative DSCR and vacancy assumptions.

What’s your monthly freedom target and timeline, and how much risk with leverage feels acceptable to you right now?

Benjamin Aaker · Answer

I recommend you start with retirement and work backward. Retirement is more of a vision, for what you want to be doing and how you want to live at that time. Then consider what it takes to enjoy that lifestyle. That will be more on the lines of income and expenses. Then consider what yearly accomplishments you will need to get you there. This will get you to a goal for instance of purchasing 1 property per year. That's not a great goal because you don't want pressure to purchase bad properties, so determine how many potential properties you need to underwrite to get one purchased. Your annual goal would then be to underwrite 100 properties, for instance.

How to Structure Financial and Portfolio Goals?

Most Popular Reply