Skip to content
×
Pro Members Get Full Access
Succeed in real estate investing with proven toolkits that have helped thousands of aspiring and existing investors achieve financial freedom.
$0 TODAY
$32.50/month, billed annually after your 7-day trial.
Cancel anytime
Find the right properties and ace your analysis
Market Finder with key investor metrics for all US markets, plus a list of recommended markets.
Deal Finder with investor-focused filters and notifications for new properties
Unlimited access to 9+ rental analysis calculators and rent estimator tools
Off-market deal finding software from Invelo ($638 value)
Supercharge your network
Pro profile badge
Pro exclusive community forums and threads
Build your landlord command center
All-in-one property management software from RentRedi ($240 value)
Portfolio monitoring and accounting from Stessa
Lawyer-approved lease agreement packages for all 50-states ($4,950 value) *annual subscribers only
Shortcut the learning curve
Live Q&A sessions with experts
Webinar replay archive
50% off investing courses ($290 value)
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
General Real Estate Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

User Stats

52
Posts
50
Votes
Rabih El-Khoury
  • Rental Property Investor
  • Dubai, UAE
50
Votes |
52
Posts

What to invest in to achieve a specific monthly income goal?

Rabih El-Khoury
  • Rental Property Investor
  • Dubai, UAE
Posted Feb 26 2017, 21:55

My goal is to make net after-tax (take-home) $10,000 monthly from renting out properties. My goal is to achieve that income level by the 10th year of my investment plan. During those 10 years, all positive cash flows and any funds from property sales will be re-invested in the business (e.g. re-invest in property, accelerate mortgage repayments, put in an escrow to raise interest etc.). The strategy is to buy-and-hold and/or buy-fix-hold. 

I'm trying to figure out the math of this plan, working it backwards from my goal, and using simple (but smart) investment benchmarks, to guide and determine what is it I need to buy (as expressed in property value, NOIs, IRRs, PVs...) over the course of the 10 years. 

There's a ton of great literature that teaches you how to analyze a particular property. I have yet to come across literature that helps you build a plan to achieve an income goal over time. This, of course, can be complex given the many possible scenarios and opportunities: you can hold for long term, hold until peak IRR, do 1031 exchanges or choosing to pay the tax etc. Still, as with any business plan, one must be able to set guidelines. For example the math could point out to: you need to buy properties worth ~$250,000 every year for 10 years, having capitalization rates of no less than 7%, and ensure that each property has a positive cash-flow after tax. 

Any advice would be appreciated. I'm going round in circles :)  

Loading replies...