All Forum Posts by: Rob Randle

Background: I'm in my mid 20's and acquired a my first rental six months ago.  I currently work in corporate America and will be self managing my properties.

Strategy: Buy and hold.

Goal: To make real estate my sole source of income in 10 years.  Owning 1 million in real estate that creates over 10% cash on cash will help me achieve my goal.  (If I could replicate my first deal I would only need 8 more properties to achieve this goal).

Numbers: 10 rental properties valued at $100K each with returns of a minimum of 10% will create $100K in cash flow.  Also, the debt pay-down will be around $400 per month per mortgage will help increase my net worth by an additional $48k per year.

Criteria: Investing in high end neighborhoods with good schools.  I'm willing to take on less of a return to attract higher end tenants.  Typically I would like 2-4br single family homes between 800-1200 square feet.  Attracting good tenants will be crucial because I will be working a full time 50 hour job as well.  Properties that take less than $10k in repair will be a target of mine to get the rentals up and running fast, plus less effort to manage to renovation process.  Appreciation will be an added bonus, however I do not count on it.  I want to purchase properties from $80,000 - $120,000.  However, I will raise this number if the opportunity presents itself.  An opportunity would be defined as supports business plan, good returns, falls within criteria, and helps me achieve my goal.

Financing: Live below my means and do conventional financing with loans from banks. Possibly house hack SFH's to get in with a low down payment and rent it after a year. This area will be a work in process as I grow, however I recently find a lender who funds their own loans and doesn't abide by Fannie Mae guidelines! They recently approved me for a second rental.

Finding Deals: MLS and Homepath as I do not have many contacts within real estate at this time.

Exit Strategy: 1039 properties in portfolio that are under performing.  Since I will be investing in higher end neighborhoods selling will not be a problem.

I believe that I had a moment this morning where I realized how attainable owning 1 million of real estate is.  I appreciate any feedback to improve and if anyone has similar success story, feel free to share!

Why is investing using own cash better than investing others cash financially? Why is investing others cash "not the final destination"? What are the benefits of using your own funds?

Lets assume that I have unlimited funds.

 Would you consider the area where your flip is in a prime area?  What areas do you think are good to buy and hold?  I'm curious because I am considering investing in Philadelphia

 Is this a nice part of Phiadelphia?  What type of buyers are you targeting?

@Terry Lewis  while this seems like a great option, it is way over my head.  I'm more in the simple buy, fix, hold style.

Is there a loan that works like a 203k loan for investors?

Go Patriots!  

My prediction:

The deflate gate pissed Bellichick off to the point has he hasn't slept or stopped preparing.  Bellichick is too much of a genius to lose this game.  Plus someones got to shut that Seattle defense up :)

For my first rental I bought an A+ condition property and only had to put 3k in it to rent. It was a good deal and I am happy with the purchase, however I want a BETTER deal the second time around

As you know, many posters on this site buy distressed properties fix and hold because the discount is better. This is what I want to do, but I have some questions...

1. What type of loan would work best on a fix and hold investment property? Lets say a property that I need to put 20-30k into it. I was reading about 203K loans until I realized that it is only for owner occupants. The reason I ask is because I do not want to put my own money into a sizable renovation.

2. What are some key considerations and differences that I have to account for using this type of strategy?

any suggestions?

For my first rental I bought an A+ condition property and only had to put 3k in it to rent.  It was a good deal and I am happy with the purchase, however I want a BETTER deal the second time around!

As you know, many posters on this site buy distressed properties fix and hold because the discount is better.  This is what I want to do, but I have some questions...

1. What type of loan would work best on a fix and hold investment property? Lets say a property that I need to put 20-30k into it.  I was reading about 203K loans until I realized that it is only for owner occupants.  The reason I ask is because I do not want to put my own money into a sizable renovation.

2. What are some key considerations and differences that I have to account for using this type of strategy?

 comforting to know that seasoned investors feel the same ways that I do! great article, thanks for the link