How Many Doors Needed?

Question

Novice REI here, wondering:

- Is it realistic to think I can obtain $1,000/month NOI on a single door ($12,000/year)?

- If yes, can I simply divide $300,000 by $12,000 to determine I would need 25 Doors to reach $300,000 Annual NOI?

Bill B. · Answer

The $300/mo cashflow doesn’t include the $400-$600/mo principle payoff. So you could/should be making in excess of $800/mo, it just isn’t all cash, unless you do a cash out refi. And it should be close to tax free. Paid off properties should make an easy $1,500-$2,500/mo each in cashflow, depending on the market and the property.

Don’t forget, cashout refis are tax free  “cashflow”. So either work on getting 10-20 paid off properties by using the property’s income or doing cash out  refis on some to pay off the others. 12 paid off properties brings in $250k without trying, with property management, working an hour a month. And don’t forget, this is taxed much lower than regular income with depreciation, expenses and no social security taxes. That $250k is probably worth more than $300k, especially in states with state income tax.

David Ramirez · Answer

If you are doing STR I would say yes. However, for LTR you would have to get creative to get more than $300+ of cash flow per month.

Simon Ashbaugh · Answer

I would say no to the first, but even if it were a yes no to the second. No 2 properties are alike and with interest rates where they are 1k noi is a lot. You might be able to get that in an str, but long term rentals will be well below that (theyre more hands off though)

Caleb Brown · Answer

I think that'd be unlikely. Maybe an expensive STR would do the trick.

Eliott Elias · Answer

You absolutely can. But those deals are rare. Most single-family properties cash flow a few hundred bucks. Building a portfolio of property that each cash flow $1000 will take time.

Chris Seveney · Answer

@Brandon Seider

Of course you can, just need a significantly higher down payment.

John Morgan · Answer

@Brandon Seider

I’m at 12.5k/month with 18 SFR. Took me 8 years to get to this so far. I’m more of a slow and steady base hits investor though. Lol. Good luck to you!

Brandon Seider · Answer

Sheesh, is $300/month all the cash flow I can expect for LTR?! This is gonna be harder than I thought... :(

How Many Doors Needed?

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