When individuals state they want to make $100-200 a door, is that after all expenses? Insurance, taxes, vacancy, maintenance, property management, etc. Even mortgage?
Man, I'm just having a hard time getting there with properties I'm looking at.
The problem is one needs to hold a very large building to come up with income to live on for $100K a year. $100,000/$200=500 unit month or Need to have 48 units or 96 units for $100/month/unit.
I'm not looking to live on the income yet. I just want to have a system. I plan on putting all of it back into the business.
Those aren’t the easiest to find in this market. You’ll need to look at lower class properties, properties that need fix up or new management or put larger down payments.
You can tweak the vacancy/maint/capex etc by setting up a reserve. Lot of people use a flat % but that doesn't really fit to real life. You'd be better off figuring out a set dollar figure and then use cash/credit/equity to operate it....