Primary income?

Question

Just curious...I see alot of people on here that buy and hold property to rent out as sort of a hobby or future retirement and some of you have been very successful. If you dont mind sharing, how large is your porfolio (Real Estate Rentals, how many) and how much do you make with your primary job (Ball park)...???

When you started how much were you taking from your primary income to build your portfolio? I am saving $1000 a month to build up my portfolio, I am just curious as to what everyone else thinks or is doing...

Thoughts?

Ned Carey · Answer

I have about 10 rentals, which I have partners on all of them. I figure about 10-15 more and my income needs will be met. My Full Time job is wholesaling.

• My mentor once took a shoebox full of receipts to his accountant. 
• Accountant: how do you know you are making any money?
• Investor: I have more in the bank than I did last year.

I don't know how much I make. I know I have more in that bank than last year.

Jesse Waters · Answer

My goal is to replace my primary income with passive rental income.  My first major bench mark will be to have enough coming in from rentals to cover my monthly personal expenses.  I anticipate that to be a great moment for me as I will no longer have to work.  I'll keep at it for a few more years and use the money from my primary job to buy more rentals.  So far the positive cash flow has been good, as long as things keep going the same way, I am aiming to be done working by the time I am 40, 9 more years.

John Blackman · Answer

That's the spirit! Go listen to this podcast for some motivation:

http://www.biggerpockets.com/renewsblog/2014/08/07/bp-podcast-082-deals-david-krulac/

Lots of folks are here to help you.

Hai Loc · Answer

I was a real estate agent full time. I used to make X amount to support my life style. Now my cash flow from my real estate investment make about 70% of X amount. Even though I consider myself a full time investor I still need to make an addition 30% cash flow to hit X amount. I am still a part time local Realtor that makes the over the missing 30% but eventually want to be pure passive in my income.

Jerry W. · Answer

@Chance Cooper  I am not much help.  I have probably put about $20K into my real estate investing in the last 20 or so years.  I have a company that I am now sole owner of that has about 15 properties atm, and I have a few I own in my personal name.  I have never taken any money out of the business as it does not cash flow very well.  I mostly use 15 year loans with a 5 year arm so that cuts down on cash flow.  In fact I spend way too much time working on rentals personally due to poor cash flow.

My plan is for retirement.  I forgot I am also part owner in a company that owns a commercial property.  That business does cash flow and over the last 3 years I have began to draw some cash for it.  Of course I then loaned that money to my corporation and used it as down payment to buy another property.  I may not make it retirement though if I buy even 1 more property this year my wife may kill me.  Oh I also forgot, I guess my company owns some turn keys out of state too.  It has been a busy year.

Chance Cooper · Answer

@John Blackman you are so right...Ive been adding it up and its crazy to think that one day I can be making the same thing Im making at my primary job now, and I can do it at home!

John Blackman · Answer

The answers for that are going to vary wildly.  In my case, I have not purchased buy and hold property, although I do have one subject-to property that performs like that.  But my business is very active.

I would simply start one at a time.  Learn a lot from your first rental and decide how you would buy your next based on your first purchase.  There is a ton of great advice on how to buy rentals on Bigger Pockets.  Once your rental income matches your job income you have the choice of ditching the job.  It can take several years, but they seem to go by faster nowadays.

Primary income?

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