Reaching $25,000 in Monthly passive income in 7 Years

Contractor · Ballwin, MO · Member since 2015 · 5 posts · 2 votes

That's my goal. just getting started into investing in real estate and will have my first property under contract hopefully within the next couple of months.

I'm planning on reaching this goal through buy in hold in the St. Louis area.

Any tips or advice is gladd welcomed. And I'm going to continue to engage and learn as much as I can from getting out their and from engaging everybody on BP.

Thanks =)

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Darren Budahn

Investor · Milwaukee, WI · Member since 2014 · 811 posts · 420 votes

11y

Good luck reaching your goal. Although to reach those kind of numbers in the rental game, I would not consider that to be passive income.

My simple advice would be to buy good cash flowing rentals below market value, manage them yourself, and keep re-investing the profits as future down payments on your next rental. Repeat as often as you can.

If you are able to purchase in cash below market value and then refinance out and get all your cash back out with no seasoning, you can certainly accelerate the whole process if you have the connections to make all those different things happen.

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Frankie Woods
Investor · Arlington, VA · Member since 2012 · 1k+ posts · 491 votes
11y
That's a great goal! Mine is similar...great minds think alike! Is that Net or Gross?
0 Reply
Darren Budahn
Investor · Milwaukee, WI · Member since 2014 · 811 posts · 420 votes
11y
Good luck reaching your goal. Although to reach those kind of numbers in the rental game, I would not consider that to be passive income.
My simple advice would be to buy good cash flowing rentals below market value, manage them yourself, and keep re-investing the profits as future down payments on your next rental. Repeat as often as you can.
If you are able to purchase in cash below market value and then refinance out and get all your cash back out with no seasoning, you can certainly accelerate the whole process if you have the connections to make all those different things happen.
2 Reply
Jesse Freeman
OP
Contractor · Ballwin, MO · Member since 2015 · 5 posts · 2 votes
11y
@Frankie Woods Thanks man. That's net.

@Darren Budahn Thanks. ha ha touche. And thanks for the input. I really appreciate it.
0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
11y
@Jesse Freeman
will second @Darren Budahn
you will earn every cent of it :) great goal though.. best of luck
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Serge S.
Rental Property Investor · Scottsdale, AZ · Member since 2010 · 390 posts · 599 votes
11y
Once you reach $25k your goal will be $50k.
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Justin B.
Warner Robins, GA · Member since 2014 · 56 posts · 17 votes
11y
Wow, that really is a 10x goal! Well, for me it is anyways.
What's your plan to get there? Do you have a year to year break down for your acquisition, funding, and scaling strategy?
I love hearing how others plan to attain their goals. It inspires me.
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Matthew Cole
Investor · Allen Park, MI · Member since 2014 · 98 posts · 36 votes
11y
Have you determined how many properties you will need to achieve your goal? That might be a good place to start. Then you can start to set quarterly/semi annual/ annual goals to help keep yourself on track. You will need a property count in the 100-200 range to hit that goal. How are you going to get their in 7 years? Good luck!
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Matthew Brand
Columbia, MO · Member since 2015 · 1 post · 0 votes
11y
First post here (just joined yesterday).
Myself and my partners have 3 rentals in Saint Louis and have similar aspirations. Was just curious what your general strategy was, a compare notes question if you will :-).
Currently we are focusing on 2 to 4 unit properties. Trying to stick to the up and coming urban areas where possible renting to the out of college / young professional crowd. Waiting for the right property takes patience, and with us having 3 right now (all under personal loans) we are at a crossroads for how we are going to finance the next one.
Hard Money / Private Money / commercial lending........ just a lot of ways to go at this point.
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Ramon Jenkins
Real Estate Agent · Milwaukee County, WI · Member since 2009 · 3k+ posts · 525 votes
11y
Welcome and good luck with your investing
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Peter MacKercherBusiness Member
Residential Real Estate Broker · Saint Louis, MO · Member since 2014 · 1k+ posts · 567 votes
11y
Welcome. Let me know if i can help in any way.
[email protected]
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Jesse Freeman
OP
Contractor · Ballwin, MO · Member since 2015 · 5 posts · 2 votes
11y
I still am working out the details of the plan to achieve this goal. Between my wife and I we can purchase and pay for 4 fourplex's within 7 years and then from their I was thinking of selling them with a 1030 exchange (atleast I think that is what it is called.) and purchasing a bigger apartment complex. However, I've also been running the numbers on a couple of different other scenarios to figure out what the best proposed plan is.
@Peter MacKercher thanks I will. And hopefully I'll see you Tuesday night.
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Chris Nguyen
Garden Grove, CA · Member since 2015 · 11 posts · 0 votes
11y
Wow I am a newbie and barely starting out and its kind of overwhelming hearing about purchase 25-50 units. I can't imagine getting to that point especially here is socal. which markets are relatively save can you guys recommend if I was looking for 50k-75k a door?
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Peter MacKercherBusiness Member
Residential Real Estate Broker · Saint Louis, MO · Member since 2014 · 1k+ posts · 567 votes
11y
Great!!! I would love to see you at the meetup Tuesday night.
Cheers!!!
[email protected]
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