How to build an Rental Empire within 15 months

[Duriel Taylor]

Hello BP Family,

I need advice from everyone with experience in the following plan(s). In the next 15 months, starting in October 2016 I would like to purchase 4ea. fourplexes for investment rental purposes. The first purchase I would like to use the FHA program, thus allowing me to only put down 3.5% for the property then rent out the other three units. I know the area of pompano well, for a 2/1 you can get up to 1,200 per month with section 8. Numbers will be as follows. In order to get the down payment funds, I will take a loan out of 10k, which will give me a 176 monthly payment for 60 months (5 yrs). These numbers are approximately and based on financial institutions that I contacted and gave me quotes.

1. 220k x 3.5%= $7700 down

tenants pay: 1200 x 3= 3600

mortgage: 1387 (tax, PMI, etc included)

water: 170

cap x: 200 (appliance depreciations, repairs, etc)

loan: 176 (10k loan; my personal loan obligation)

PROFIT: 1,667 mon. (20,004 yr) **I could save 6 mons from the profits and pay off the 10,560 from the personal loan.

Property 2; I would write and notarize a contract up between me and a relative or close friend that will state that if they apply and qualify for a 30k loan which their monthly payments will be 528, I will pay them 10k over 12 months (834 per. mon). I would also pay for their debt for the next 5 yrs (60 months, or even sooner).

2. 220k x 20%= 44k (I will put the money in 3 months after the first purchase, most banks require to have funds in your account for 90 days)

tenants pay: 1200 x 4= $4800

mortgage: 1055 (tax, PMI, ext included)

water: 170

cap x: 200

property mgn: 288

loan payment: 528 (loan for 30k to the institution)

loan payment: 833 (loan for 30k to someone for 12 mons, totaling 10k)

Profit: 1726 mon. (20,712 per yr)

I would repeat number 2 for property 3 and 4. My goal is to quit my 9-5, which I been at 10 yrs and create a six figure income thus I can focus on my desires to form a construction business. I would like to purchase these four properties by the end of 2017 then quit a few weeks shy of 2018. Please give me all the feedback and concerns that may interfere with the above plans. I look forward to communicating with you all. Thank you in advance.