Baltimore, MD · Member since 2019 · 80 posts · 47 votes
7y
My short-term goal is to have a minimum of 48 properties in 3 years @ $200 per month = $9,600 per month passive income. My ultimate goal is 100 properties @$200 = $20,000 per month of passive income.
In my area a cheap rental cost $150 -300k. Vs many of you at $30000. Proportionally, it is better to look at things in percentage of cash flow over purchase price
$500/door - I put anywhere from 30-50% down on a property though. I'm not building my 'empire' quickly. I save all year, and buy a new property each summer. I take the low risk approach. I haven't had much turnover in my properties and when I have (longest 2 weeks), I didn't worry about it because my mortgages are all very reasonable.
We each have our own methods to investing. I like to see everyone's goals - it's fun to see how each of us reaches our individual goals.
My approach is very similar. Works for me and I plan to stick with it.
Rental Property Investor · Corvallis, OR · Member since 2018 · 840 posts · 1k+ votes
7y
@Michael Baradell Sorry for the late response, as I haven't been on here for awhile. A mixture of several things. My first 4 plex buy and hold was back in 2008. I put 25% down and got a loan via Wells Fargo. It was tough back then to even get an investor loan, but I got it done.
The two four plexes I bought in 2016 and 2017, I got a old owner to sell me with $60K down with a price of $315k owner carry for 2-6 years, my choice of refi any time during that period. Just a month ago, I convinced him to extend another 13 years at the 4.75% rate! I was looking to refi him, but saved a ton by persuading him that he would be paying massive capital gains and this was his only chance in life to be the bank and make the easy interest! The 4 plex next door to this deal I got a straight up 20 year owner carry with $40K down with purchase price of $245K. Both of these I sank $230,000 in rehabbing all eight units. The second property sat for 13 years vacant! Yes, you heard that right. I used my HELOC off my house for all down payments and rehab costs. I actually have been flipping like crazy to pay this all down! So, these were NOT turn keys properties.
Also, last year bought a 4 plex from a old lady with $30K down and price of $260K. The full rehab was $81K for all four units. It is a 10 year balloon at 5% on a 30 year amortization. I have created massive equites in these off market deals! Most units were around $600 per month on the above deals, and now averaging $1000-1100 per door.
Other deals were a 5 plex and 8 plex units, all run down a bit, but we got commercial lending via MAPS Credit Union in Oregon, at rates 4.25% and 4.75%. We fixed all 8 units (roughly $80,000) and got a new appraisal and pulled out $200,000 and did a refi with the same said lender. My son and I each got our down payment back as well as our rehab cost and now cash flow $1000 each!! NO cash in the deal, and also created $400,000 of equity, for real!
Hope that helps!! I grind hard to find off market deals as the turn keys on MLS bring too much money in my neighborhood!
@Michael Baradell roughly $400-500 per door. I know this is hard, but I seek off market MLS deals that need lots of rehab and tenant turn rounds. I now manage 29 doors, but had to rehab every single unit. I buy and hold 4 plexes, and also have a 5 and 8 plex. I also manage these myself with a full time job. I am tired a lot ! Lol
@Michael Baradell roughly $400-500 per door. I know this is hard, but I seek off market MLS deals that need lots of rehab and tenant turn rounds. I now manage 29 doors, but had to rehab every single unit. I buy and hold 4 plexes, and also have a 5 and 8 plex. I also manage these myself with a full time job. I am tired a lot ! Lol