All Forum Posts by: John J Kelly III

This is one of the best topics/threads I have read yet on BP. Gives me hope that financial freedom is possible via REI. Ultimate goal is to replace W2 income with REI.

@Greg Scott very insightful, thank you.  I hear all these wild success stories yet here I sit with 400k ready to goto work and I feel like it won't do a thing.  Maybe it'll get me $1000/mo in cash flow.  

What also interests me a lot, is the tax advantages of REI. Straight W2 we get crushed. Cash flow, appreciation and tax advantages definitely would be a nice step in the right direction.

I've listened to so many podcasts, read the books, spent wayyy too much time on this forum all in an effort to educate myself about REI and specifically SFH vs Multi. Just today, 5 different podcasts discussing how people started with 0 and now have 80, 100, 500, 800 and even 1000+ doors. They all talk about financial freedom, cash flow, appreciation and all the good stuff, even so much as some starting with very little money of their own. Many have reached their "financial freedom" which is my goal. So what's missing in all these podcasts and forums?? No one mentions the cash flow. Everyone has crunched the numbers and to get about 20k per month in cash flow you need 50+doors and about 20mil in RE. 20mil in RE means a ton of $$ down. Unrealistic for all of us.

So, is anyone willing to give numbers?  My cashflow is $20,000/mo with 30 doors and about 400k in cash for down payments, etc.    The podcast today, popular guys with a well known podcast, they have 80 doors but not once mention cash flow.

I'm concerned my goal of 20k cash flow is unrealistic.  Of course it won't happen over night but is it possible?  People mention 1000+ doors but never mention the cash flow. 

That's my mini rant of the day.  

I'm in a similar situation but considering taking out some of my 401k for REI. The taxes we pay every year exceed $100,000 due to my W2 so real estate is a strong consideration for us. I could pull out up to 400k or so which makes me think multi family could be the way to go. Easier to manage 1-2 multi vs 10 SFH?

 Curious. on that specific 12 unit what is the rent per unit? At 620k its seems like a fairly reasonable deal with good cash flow?  Excuse the lack of acronyms!

 Now that's great to hear!  I need to duplicate something very similar.  

Can someone explain to me why the multi family section is "distressed" and why I keep reading about so many loans being due. I thought REI and specifically multi was the safest route due to the number of doors which minimizes risk, at least of vacancy, etc.

Have I missed the opportunity to get into REI? Interest rates high(er), which means cash flow decreased and other negative factors. I guess the tax advantages will always be there but it seems like cash flow and appreciation is taking a huge hit.

 @Denise Supplee  just watched the spark co investing club intro hour long video.  Sounds pretty convincing!!

Good stuff!  Keep it coming. 

OUCH!  Am I stuck with my W2 forever then?  I liked the idea of multi due to the scalability, etc.