Hello everyone! :)
I have a plan on what I‘d like to accomplish in the next 10 years and was hoping to get some valuable input from fellow BPers.
Goal: To earn 20k per month within ten years through multifamily ownership.
Why: To provide income making my 9-5 full-time work optional. Also, to gain financial independence and the freedom to live life on my own terms with more time for family, hobbies, adventures, and charity work.
How: Well I don't know exactly, but I've created a plan to hold myself accountable. I accomplish more when I write down my goals and the steps necessary to achieve them.
2015 - Renting, Saving, Learning
2017 - Buy Duplex, Triplex, Fourplex to house hack using FHA 203k loan (Using 30k saved from W2 job)
2018 - 2020 Househacking, Saving, Learning (Possible Partner to Fix&Flip)
2021 - Begin Fix & Flip Journey (Using 100k saved from W2 job)
2022 - 2024 (Fix & Flip Profits + W2 job savings = 400k) (30k profit per flip every 6 months. Numbers are estimates only.)
2025 - Partner for 4.8M apartment complex.
Key Points: Putting together the right team will be a major focus continuously.
I actually don't know how much I'll have saved each year with raises, promotions, unexpected expenses, good years, bad years, etc. I save as much as I can from my day job, and won't invest until I have enough reserves. I also have 3 retirement accounts I contribute to that's not included in the plan.
It's been a few weeks since I became interested in investing in real estate. So, this is my very vague, summary level plan. Thanks for reading!
What do you think?
All the best. I would say you can be much more aggressive than your plan allows. With $30K savings for an FHA loan is simply not needed. You could buy a $100K house for $3500 out of pocket.
6 years from now to start flipping, also is a long time. You could soak up enough knowledge here in 6 months to be comfortable flipping.
Jump in the pool, the water's warm :)
@Lissa Dear Congrats on your goals... Commit to the,. I'll get in the habit of writing them down every day! Good luck!
@Mark Gallagher I am drinking from the fire hose right now, but I can definitely see where I can get started much sooner. My instinct is to be more conservative when I feel very green and my money is at stake. 6 months you say? I'll use that as a benchmark. Thank you!
@Nick Britton Thanks Nick! Good luck to you as well!
You should definitely purchase something as soon as you can, you can wait on the flipping. Can you get a fourplex in your area for $200K?
@Lissa Dear love the focus and goals you set out for!! With that focus you will be shocked how fast it can come together
@Mark Gallagher I guess it's doable, but asking prices are upwards of 300k. I will keep my eyes open though, since I would need a primary residence anyway regardless of my investing goals. So I should wait on the flipping to stop renting and own first. I had that planned just way further out. I see your point.
@John Cohen Thanks John! I don't want it to come together too fast though :)
@Lissa Dear you have enough structure on here and plenty of people to help you go at your pace!!
Hey @DaLissa Dear
Well done on Your Vision and writing out the Goals!
Although I too believe you could pull the trigger a little sooner on you time line it's important to remember that it's "YOUR" timeline and "YOUR" Vision.
Best of Luck and Enjoy your journey!
Provided you have moderate credit and steady income you could get into a $300K x 3.5% a total of $10,500.
I'd say those are really good goals. But you may want a more detailed plan, especially for the short term (not sure I'd detail more than about 5 years out). Goals are great, but it always help me a bit more to have specific steps to accomplish. For instance, your goal may be to save a million, but the first step in your plan may be to set up automatic draft from your paycheck to 401k.
You say your not sure what the first step is, maybe its reading a bunch on BP or calling your bank to see about financing, etc. It doesn't have to be a huge step, but write down specific steps to get you started.
@Account Closed Thanks Amy! I have a more detailed plan for the next two years, but I really wanted to nail down my end goal to make sure it is at least feasible.
Good luck! I think you'll do great!!
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