First I should warn everyone this is a long post, so I'll push the strategy to the front and the about me later. After spending the last few months reading on here and thinking about how I want to pick up investing into RE, I believe this is the best course of action I could take with my current employment and situation(s):
My end goal is to have a large casfhlow per month, either through large apartment complexes or lots of smaller properties. And by large, I mean I can live off 5k a month rather easily, but if I could make 100k a month through investing, why not go as high as I can make it?
To reach said goal, my idea is to use my 4 basic loans to acquire rental properties, specifically 4-plexes that generate good ROI's and CF. I plan on selling my one SFH in 2014(when the lease is up) at retail for a hefty profit. I had it appraised about 6 months ago for 218k, and I bought it for 110k with repairs included.
Seems as though banks are mostly against giving out loans from 5-10 from what I'm reading, so to continue investing from there, I will purchase cheaper SFH's that generate good cashflow with stable renters. I've come across the topic of people purchasing 30k-40k SFH's that rent for roughly around 1200 a month, and my current SFH only rents for 1300, so I can see the dramatic difference in ROI and CF.
Appreciation is not really a concern of mine, though it would be nice. My intention is to create a ‘cascading’ effect from increasing my monthly CF continuously until I can more or less purchase a new property every month. At which point I would either continue doing the same thing over and over indefinitely, or sell all my assets as a portfolio loan(or as a few sets of), and then roll all that pooled money over into a single larger asset IE: a large apartment complex, where ever the CF be best at the time.
Of course now I need to figure out how to find the deals and all that good stuff, but this is just my initial idea to put my goal and how to achieve said goal into perspective. I'll be trying to figure out the more intricate details over the next 8 months of my deployment before I can touch ground back home and actually start purchasing anything.
So now a little bit about me and my financial situation:
I've been a member on here for a few months now. Haven't made many posts, really have just been reading and taking notes on the bigger newbie topics. I think I have the 50% and 2% rule down; I'm currently trying to figure out how to make proper CAP rates and so on.
So I’ve stated it before that I’m military; Army EOD to be exact. I tend to travel a lot, and I enjoy it mostly but it does eliminate any sense of stability when it comes to living conditions. Hell, I’m currently deployed for a 3rd time; hopefully for the last time. That all being said, my only debt is one mortgage from a house I lived in at my former duty station, and I have a good bit of savings, currently mostly in silver. I have done two flips in the past, bought a house, lived in it and fixed it up, then sold it once I moved duty stations again, the current rental I still have I could not sell, so I rented it out till now, plan on selling it when the lease is up. So maybe not in the traditional ‘fix & flip’ strategy, but that’s my experience. I have no wife or kids, and no gf, so basically no bills. My rental loses a bit of money based on the 50% rule but not much. My credit was over 720 the last time I checked; should be still up there when I get back to the states in october and that’s more less everything.
I always welcome critique’s or advise, and I have really thick ski. I’m probably crasser than most people on here, so I’ll try and clean up my language to speak on the more professional side of things.
Have a good one :)
