How to reach goal.........my plan vs your plan!! Thoughts?

Question

Goal $6,000 passive income by December 31st 2019

Flip one house every 4 months with self guided 401k trust

Purchase a house every other month to BRRR

Flip one house every 6 months for additional income with sale of current flip for additional income source

SUMMARY:

I have 5 condos that are paid for totaling about  $350k to reinvest.

I have a good amount to invest from 401k trust

I have a flip I'm closing escrow on next week that I can continue to reinvest in BRRR

I have some cash in the bank I can invest

I have two investors looking to invest with me,,,,,, one with a very large amount of capital and one with pretty large amount.

Thank you in advance for advice...........

Dave Malone · Answer

Thanks for the input. I’ve actually tried that,,,  I haven’t found an apartment community that allows for it in Downtown Nashville.

Erik W. · Answer

I agree that flips are hard to get done on time due to labor shortage.  I'm still working one we started back in March.  Thinking I'm just going to have to knuckle under and do some of the work myself....which I swore off about 4 years ago.  It's taking WAY too long.

I'm thinking rental arbitrage might be a better strategy for now.  Rent a place for $800/month.  Put some furniture in it and rent it out AirBnB for $1,800/month.  Something that's relatively "turn key" and doesn't require buying in at today's high prices.  Not exactly "passive" income, but might be more realistic in today's market.

Dave Malone · Answer

Thank you for advice. If I had enough solid contractors I’d consider that,,,In the current economy I can barely do two at a time. 😬

Brent Shields · Answer

My experience has been that my worst flips made a lot more money than my best buy and holds.

So I would sell everything I had and put all my money into doing flips until I had all the money I needed to buy the rentals that would get me the passive income I wanted.