multi family property

2 Replies

hello, I want to know for the first time homebuyers on this forum if what systems or formulas did you use to come to your decision to purchasing your first property. Trying to help my fiancee build confidence and understand the numbers her goal is to make 100k a year in rental income and wants to know what other first time buy and holders used to make their first purchase and if you could advise what the best route to go

If your looking to buy a SFH as your first property with the intent to live in it for 12 months and then use it as rental, I would run the typical cash-flow analysis that can be done on the BP calculator.

If your looking to clear 100k a year, I would break that down into manageable chunks.  for example that's $8,333 a month. Assuming your properties cashflow $250 each, you will need about 33 properties.  Now you can start putting a plan to acquire x number per year until you reach your goal.  I wrote a post about how I laid my plan out and how I'm progressing on my five year plan to 5k a month in cashflow (link below).  I can send you the spreadsheet if your interested.

I would suggest house hacking a multifamily or the BRRR strategy if you really want to accelerate yourself towards your goals!

Good luck!

https://www.biggerpockets.com/forums/223/topics/480611-are-you-on-track-to-accomplish-your-goals

What time frame is she wanting to reach 100k a year? I have both multi family town homes and single family homes. I have better returns on my single family because I bought my first two homes on the same property with room to build 7 more homes on the same property. So that allows me to make the most out of the property that I have already bought. The two that were already on the property were small new build single family homes. Both are 725 square foot houses with two bedrooms and I get really good returns out of them so I am building 7 more identical to the first 2. I also tend to find tenants a lot quicker than my multi family town homes. I don’t put any of my money into them and they make enough after my payment to cover any unexpected costs. I would be more than happy to share my blueprint on the houses I’m building if you want. I have $57,600 in the new ones and they are turn key ready. I am getting $650 a month out of them and have people lined up waiting on them to be done.

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