El Paso , TX · Member since 2016 · 94 posts · 25 votes
Hello all,
Thank you for taking the time to read my post. I have a goal to net 10k a month in passive income from my investment properties within the next 4 years and I’ve worked out some of the numbers
Multi Family 100 units netting $100 per door per month
Single Family 50 units netting $200 per door per month
Multi Family 100 units divided by 4 years is 25 units a year
Single Family 50 units divided by 4 years is 13 units a year.
I would prefer to go the multi-unit route but how can I purchase 25 units in a year?
I have 10k saved and my credit score is in the 750s. I just need help formulating my plan past this part.
Any advice would help. Thank you all have a great day!
Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
7y
@Brittany King is 10k all the money you have to do put towards this goal?
If that’s the case, I don’t want to tell you you’re being unrealistic, but you’re being unrealistic.
This doesn’t happen overnight and and I just don’t see this happening in 4 years. Within 10-15 maybe, but not 4.
I invest in a very affordable market where I can buy multifamily for 15k a door. At 100 does that’s 1.5M in real estate and 375k in downpayment money alone. You don’t get there in 4 years.
Give yourself 10-20 and take it one small step at a time. That’s the best advice I can give
El Paso , TX · Member since 2016 · 94 posts · 25 votes
7y
@Bill Kramer I just finished listening to that episode you suggested. You were right it is good I got a ton of great info. I took notes but I’m going to listen again and take more. What do you do for accountability?
El Paso , TX · Member since 2016 · 94 posts · 25 votes
7y
@Nina Hayden Thank you. I have a duplex. I rent out half and live on the other side (still fixing it up). I heard I could probably pull out the equity but I’m not too sure how that works. Would that be the same as refinancing?
El Paso , TX · Member since 2016 · 94 posts · 25 votes
7y
@Dennis M.Thank you. I was just using that number as a bare minimum. I wanted to stay conservative. But you are right I might not need as many units as I think I do.
Contractor · Evansville, IN · Member since 2019 · 142 posts · 208 votes
7y
I find the best way to uphold accountability is through crystal clear communication.
When I ran 12 employees churning out ultra high volume apartment painting, we had daily and weekly meetings. I laid out goals, and made the consequences quite clear and the rewards quite clear. I paid an 8 hour day. If you did good and finished in 6 hours you could go home and still get paid for 8. If you slacked off, you stayed until the job was done even if that means a 12 hour day, but I'm still paying for 8. Very rarely did someone work late.
The only reason I don't run a crew anymore is I had to pause for year to be present for my mom's last year of life. When I went hands off, people got lazy. Nowadays if I need help, I have a network of contractors I can get manpower from and team up on work.
I hold my advertisers accountable too. Either it performs, or I cancel it.
You cannot communicate enough with those you work with. I lead by example, so when the guys say it can't be done I can show them it can.
Rental Property Investor · Milwaukee · Member since 2018 · 44 posts · 36 votes
7y
@Brittany King. I like the fact that you go big. That is awesome. My question is: Why wait for 4 years. I think taht with the right strategie and market you can get there even sooner. I will advice to partner with someone to increase your purcahse power and buy a 100 units bulding and you achieve your goal faster than you though. No need to wait for 4 years. Caution: Just take your time to find the right partner.
Real Estate Broker · Pensacola, FL · Member since 2018 · 14 posts · 5 votes
7y
@Brittany King
Hi Brittany,
I love your goal! I actually have the exact same goal, 10k/mo in the next 4 years and I believe it's completely doable. I think @David Greene would be be disappointed no one has mentioned the BRRRR strategy to get after your goal. The biggest thing for you is you will have to network like crazy to find an investor (or a partner depending on who you find). With only 10k it'll take leveraging other people's money. What I did to find someone to invest in me was just talk about real estate to everyone and my goals and strategy. Then, one of my former coworkers randomly was like "give me call" and just like that my first investor.
The crash coarse would be to read:
- BRRRR by @David Greene
- Long Distance Real Estate Investing by @David Greene
- The Book on Estimating Rehab Costs by @J Scott
- How to Win Friends and Influence People by Dale Carnegie (Important for that Networking Piece)
- What Every Real Estate Investor Needs to Know about Cash Flow ... by Frank Gallinelli (To bolster your knowledge of running the numbers)
If you want to go a little deeper, I love the CPA advice on BRRRR from @Brandon Hall.
Listen to Podcast 327. And search on BiggerPockets for the blogs on the metrics to identify growing markets with cash flow.
Good luck! And if you want more specifics on my strategy feel free to message me :)
El Paso , TX · Member since 2016 · 94 posts · 25 votes
7y
@Joe Villeneuve Being conservative to me means how much risk I’m willing to tolerate. I don’t want to put myself in a position that if it goes south I can’t recover quickly.
@Joe Villeneuve Being conservative to me means how much risk I’m willing to tolerate. I don’t want to put myself in a position that if it goes south I can’t recover quickly.
Your analysis doesn't reflect a conservative risk control. Where you think you're playing it safe, all you're doing is an inaccurate analysis. Analyze exactly what the situation is. Don't fudge any numbers thinking you're covering yourself...it won't.
Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes
7y
Here is what I think. All the naysayers are kind of right, and all they yaysayers are... well kind of right too.
I know right I am a real man. Utterly useless!
I may not have a direct answer to your post, but I have a bit of insight how you could get there by changing your mindset.
So.... let me tell you a lil story.
One day there was this little monkey boy. OMG was he handsome. His name was Jerryllo. He had super powers. He fought evil villains and beat them all. Then he got really board, so he became evil and took over this planet.
The end!
Now let me tell you an other story.
I am a flipper. Investor yada yada yada.
I decided to make it so I cracked the SEO code and now well the Gods rewarded me with insane beauty and immortality.
So people noticed and they kept seeking me out. So about 4 months ago I decided to create a side business. Within 4 months I make more money doing this side business than my flipping business (that is flipping about 3 to 4 houses at a time).
So the point I am making.. all the naysayers... they are not necessarily evil. They are just realistic. Now realistic is a funny concept. It is a projection of that is feasible based on their OWN circumstance, mental capacity, risk management, and their perspective of life.
In turn all the yaysayers, may just be overly supportive, hopeful, knowing that if you mess up it is not their butt on the line so it is a lot easier to support you from the side lines.
So the true advice anyone can really give you is.. look at yourself. Do you really have what it takes to get there. Probably not, otherwise you would have been there by now. BUT CAN you grow into the person you need to be, to get there. Now THERE lies the power and wisdom to forge your own destiny my young grasshopper.
If you need more than 10K to make your dream come true,