Can I get into real estate?
Hey guys. I'm new to the forum, but I've been on here for a while reading articles, tips, et cetera, and it's been a great help so far. I have a few questions of my own though and I'd much appreciate your thoughts.
Now, I'm interested in getting into real estate landlording; I'm interested in getting good cash flow. I feel like I'm qualified financially, but I still have a few concerns.
Now, a bit more about myself: I am, by occupation, a surgeon in Texas. I have good credit and my current monthly income is typically $23,000 (before taxes). I'm only 33 right now and I'm pretty stable, so I feel that real estate would be a great thing to do right now.
I have a good bit in savings and I could always buckle down and save alot more as per my relatively high monthly income; I think these are my pros (maybe?).
Now, here are a few of my concerns:
I work a pretty hectic work week (it's not unusual for me to have 60-70 hours), so being a full-time landlord simply won't be an option. Would that mean I'd need a property management firm? And how much work is typically associated with landlording?
A few questions:
I was looking into properties and I think fourplexes would be ideal; would that be the case, since I'm paying a mortgage on one building while having four units?
Should I go for cheap or more expensive (with better tenants, etc)?
How many properties can one typically acquire in a year? One? Two? Five? More?
Where do you guys find your properties to buy?
And my biggest question: how much can you really earn?
Those are a few of my questions and I'd love to hear all of y'alls suggestions and answers. My goal is to be earning at least $15,000-$20,000 monthly by the time I'm 40 from real estate. Is that a stupid pipe dream or a realistic goal?
This is how I do my calculations, although I could be doing it completely wrong and if so feel free to correct me or offer constructive criticism,
If I purchased a $300,000 property with a 30-year fixed mortgage, I would get 500-600 a month on the mortgage payment (at least, according to the calculators). If I purchased only fourplexes, I'd have 4 units and I would charge a rent of $700-$800, grossing me (assumning full occupancy) about $3200 a month. Then I subtract my mortage (-500), taxes (-100, let's say) insurance (-125) and maintenance fees (-300) for my net income of about $2000 per property.
Is that a good calculation?
I'd very much appreciate your tips for a newbie.
Thanks,
Michael