All Forum Posts by: Wade Woo

Why did you pick Charlotte, NC?  Who is going to manage the properties?  Do you have boots on the ground to manage the properties?
How much do you have to invest?  How much net cash flow per month do you need to retire?  DM me if it's too personal to post publicly. 

Some markets are better for growth while other markets are better for cashflow.  It depends what you want growth or cash flow.

How did you come up with a market value of $400k?  Do you have the addresses of these properties?

> I'm getting older now and am looking to figure a way to diversify more into real estate so I can have guaranteed income for the rest of my life.
I think what you want is to invest the $1M in cash to produce passive income. Is that correct?
> Am I not understanding it properly or am I better off investing out of state?
Yes investing in MI would not be the best market to be in for cashflow
> If out of state, then do I need a management company or do you have a system or guide of how to manage from out of state? 
Yes you need a management company.  Yes there are boots on the ground that manage properties out of state.
> Can you cash flow positive with a manager? 
Yes you can cash flow positive with a manager.  Part of the rent pays for PM fees.
> I guess I'm looking for some ideas on what amount of cash flow I could realistically generate with $1 mil in cash with modest/light leverage.
With $1M you would be looking at a net cashflow of $10k per month. How much per month do you need to retire?
> Also what might be the best strategy for return/amount of work. For instance, I don't think I want to own Ten $150,000 places because I imagine that starts to become a lot of work. What is the sweet spot? Three $500k places? Two $750k places?
The best strategy is to work with a partner who is willing to bring in Funding Partners to fund deals and who is willing to all of the Real Estate work and split the profits 50/50.

@Tyler Piciullo

> Ok best place to look for cashflowing LTR?
Choose the surrounding area of top markets that people are migrating to - surrounding area is priced cheaper that the actual top market area
Choose a market that are consistently below the national median - reduce risk during recession 
Choose a market that have a low price to rent ratio - increase cashflow
Choose a market that has many starter SFH for LTR - Starter homes are in consistent demand
Choose a partner with a solid track record and a proven system to partner up with - learn from someone who has done what you want to do at least 10x over

@Travis Hagan Memphis, TN is one of the best markets to invest in for cashflow.  Turnkey is the way to go if you want to be hands off with the daily operations of real estate.  You can consistently double your investment in 5 years.  A $700k investment becomes $1.4M in 5 years, $2.8M in 10 years and $5.6M in 15 years. $5.6M @ 4% interest / 12 months = $18.67k passive income per month

@Brandon Diede 50k can get you into one rental property that cash flows on average $500 per month.  DM me if interested to know more.

How about getting a FHA at 3.5% down or $7k for a $200k home. Find a home 20% below market value with a basement or an ADU. Make sure that it cash flows. You live in it for a year renting out the rest of the rooms. After a year find a home 20% below market value with a basement or an ADU. You make the second property your residential and the first property a rental. You live in the second home for a year renting out the rest of the rooms including the room that you were in on the first home. You do the same thing the third year. You find a home 20% below market value with a basement or an ADU. You make the third property your residential and your second property a rental. Once you have three properties then you have established a track record. People will notice what you are doing and want to get in on the action. You start asking people with money to put the down payment on a rental property. You do all of the work and they get an agreed upon rate of return. Also, when it comes time to sell then you sell it to a motivated buyer with a rent to own or lease option.

@Eagle Yeh Find an area that is below the national average.  That way if the market turns negative then the downside risk is minimal.  Find the market with the best rent to price ratio in the best neighborhood in that market.  Find motivated sellers in the neighborhood.  A $50k investment can get you into a $200k rental property.  Find a partner who is willing to invest $10M of his own money to create an automated system with a team of 200 people.  How much do you have to invest with?  Connect with me to continue with discussion.

@Michael Macaluso Yes it's doable.  Here's how:
Have a business partner with a team who has an automated system that does the following:  
1. Choose the best market
2. Choose the best neighborhood in that market
3. Choose homes that are 20% below market value
4. Choose homes below the national average
5. Choose homes that doesn't require a lot of renovation
6. Have a Property Management Company managing homes at a discounted rate
7. Have steady work for contractors to do

$100k can get you into 2 homes. In 5 years 2 homes become 4.  Each home net cash flows on average of $500 a month
After   5 years 4 homes @ $500 a month = $2k a month
After 10 years 8 homes @ $500 a month = $4k a month
After 15 years 16 homes @ $500 a month = $8k a month
This is only with a one time investment of $100k.