All Forum Posts by: Shane Finnegan

Quote from @Michael Fraulo:

$6,000 per month or $72,000 per year, which is your NOI. Divided by purchase price of $1.3mm (using all cash), would be a 5.5% cap rate. You could park that money in the bank and get close to that. Why not just buy NNN or commercial property where you may have less management. Under your scenario, you would have to buy around 4 homes. Something else to consider.

I wouldn’t put my money in a bank because even if I earned 5.5% on it, the money wouldn’t be appreciating outside of that and inflation would destroy it. If I can earn 5.5% or more on real estate, the properties will appreciate faster than inflation, and my wealth won’t get eaten up. Do you know where folks are investing to earn 5.5% or even 7% on cash purchases of recent construction properties? Is it possible to hit those numbers?

I’m interested in investing $1.4m in cash, aiming to earn 7% after expenses per year. I’m interested in new or recent construction in nicer neighborhoods. Is it possible to make $8k/mo (roughly 7%) after expenses when investing that amount of money? I’m not interested in taking loans. I’m single, and I’m doing this so I can quit my job, live in a LCL area, and focus on starting a business.

In a couple months, I’ll be investing $1.3m - $1.4m into real estate, and I’ll be looking to pay cash and not have any loans. My goal is to be profiting $6,000/mo or more (if possible) after expenses, including property management. I’m single and I want to be able to quit my job and earn enough from my rental income to focus on starting a business. I don’t want to take out any loans because I don’t want the risk or reduction in rental income.

Where can I earn $6,000/mo in profit by investing $1.3m - $1.4m in real estate? I’m just starting my search, and I’m currently looking at $300k - $350k new construction single family homes in Chattanooga and the suburbs around Nashville. The rents there seem to be high relative to those purchase prices. Where else should I be looking?

I’m not particularly interested in buying old, run-down properties. New and recent construction appeals to me because I won’t have to replace the roof or HVAC for 10+ years.