How realistic my plan is?

6 Replies

So I have been bitten by the real estate bug lately, and I am looking to purchase my first real estate investment by the end of the year. I am also planning to buy at least 25 properties the year after, and about 25 properties the year after that. So it comes down to about 2 properties a month. So my question is how much effort would it take? I know it depends and varies from person to person, but if you have had success with REI, I would very much appreciate your story.

The other thing that concerns me is that I have a rather demanding job (65-70 hours a week) in a HCOL area, so I am thinking of doing out-of-state investing as well. I will start with my investment in the area where I am from, which is about 4 hours away. While the area is a bit far, I know the area well, and wanted to start there to leverage my knowledge of the area. I have already worked with an agent to find some properties there. 

Would it be far fetched? Of course, there's a will, there's a way. But I just wanted to have a good idea of the commitment it would take to do it. Many thanks! 

Buying 25 properties in a year is certainly not far fetched.  It is when you start introducing caveats where it gets hard.  

Trying to achieve above average returns?

Trying to buy and force appreciation to get your down payment back?

Having to buy distressed properties to match your return metrics

Having to buy in very specific neighborhoods to hit your metrics.

If you have the capital to buy 25 properties in a year without needing to refinance the principal back out, then why not look into buying 1 50 unit building?

Originally posted by @Hoang Bui :

So I have been bitten by the real estate bug lately, and I am looking to purchase my first real estate investment by the end of the year. I am also planning to buy at least 25 properties the year after, and about 25 properties the year after that. So it comes down to about 2 properties a month. So my question is how much effort would it take? I know it depends and varies from person to person, but if you have had success with REI, I would very much appreciate your story.

The other thing that concerns me is that I have a rather demanding job (65-70 hours a week) in a HCOL area, so I am thinking of doing out-of-state investing as well. I will start with my investment in the area where I am from, which is about 4 hours away. While the area is a bit far, I know the area well, and wanted to start there to leverage my knowledge of the area. I have already worked with an agent to find some properties there. 

Would it be far fetched? Of course, there's a will, there's a way. But I just wanted to have a good idea of the commitment it would take to do it. Many thanks! 

 Why would you want to buy 25 properties a year?  Don't look at the number of properties, look at the number of dollars you have to get into these 25 properties, and buy something larger.

REI i$ a number$ game. That doe$n't mean the number of propertie$.

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Everything is possible with enough money. 

I work 60-80 hrs/week. Invest in multiple locations and states but within a 4 hr round trip at the longest. But I make my own schedule. 

2 properties/month isn’t realistic unless your fine with just buying regular listed properties. I buy something usually on average every 1-2 months. 

I think it is definitely doable especially is you are going to use the BRRRR method. I would add another R for reserves as I think they are absolutely indispensable so you don`t get stuck. I would advise you to take it slower so you learn from deal to deal like getting a team of boots on the ground ( realtor, PM etc). These people will make or break you, so I would say that vetting them properly is of utmost importance and should not be rushed and after doing a few deals with them and they perform well then you can increase your speed. After you have reached a certain level of experience you can speed up your acquisitions considerably. I wish you the best of luck. Cheers

@Tyler Weaver Obviously, the goal is to be cash flow positive here. I am still green, so was thinking of buying 25 MF, spread different across areas where population growth and median income are preferable for REI. Also, haven't really looked into commercial real estate, so came up with the 25 MF at this point.

@Joe Villeneuve Understood. Definitely wanted to purchase cash flow positive properties. The goal is to generate enough passive in come to replace my current income. 

@Michael O. Makes sense. I think the number 25 is obviously arbitrary. Think it will take some time to achieve the critical mass needed to scale. But the point on Reserve is noted. Think it's important to set aside a specific amount to cushion myself against any adverse events.