All Forum Posts by: Wade Woo

Choose a landlord friendly state that people are migrating to and not away from like New York.

Sell the 14 townhouses with a lease with option to buy.  $4.9M - $1.6M = $3.3M

Withhold 1/3 for taxes, $1.1M

$3.3M - $1.1M = $2.2M

$2.2M = 44 rental property with cash flow of $22k per month.  

In 5 years $2.2M doubles to $4.4M.

$4.4M = 88 rentals with cash flow of $44k per month  exceeding your $30k per month goal.

If a property were to cash flow at $500 a month on average then you will need 24 single family homes.

In order to find out if this is a good deal, you will need to do a comparative market analysis (CMA) on each of the three units with other units that are similar that have recently been sold. Are these units single family homes?

How did you come about knowing about this 18 property portfolio? What is the seller's motivation to sell? What is the partner bringing to the table? Are these units located in a good neighborhood? Is it positively cash flowing. What are the comps - comparative market analysis (CMA) of these properties?

@Patrick Kelley

@Aj Parikh

You are both probably wondering, is this guy nuts?  How in the heck can you get into two single family rental properties in a very good neighborhood for $100K?  You would leverage the money from banks by putting only 20% down and finance the rest.  Mortgage rates are at an all time low right now.  Take advantage of it.  

Be very careful on who you take advice from.  You can be steered down the wrong path.

Find a mentor that you trust that has already been through that journey of creating $10k a month in passive income.  I know of one that is transparent with great integrity.  If interested let's connect so that we can chat some more.

Hi Patrick and/or Aj,
$100K can get you into two single family rental properties in either Orlando, FL (for appreciation) : Memphis, TN or Indianapolis, IN (for cash flow) in very good neighborhoods.  They average around $500 per month per property.  It's not only turnkey, it's also passive income.  Let me know if you want to connect and chat about that as well.

> I wanted to see if anybody could see if there's some huge mistake I made or if it's really this bad.

I don't see any huge mistakes.  It's really that bad.  Base on your detailed analysis, tell us why do you think that this is a bad deal.

How do you reply to a Craigslist post of a rental property in order to first establish a relationship with the owner? Do you let them know that you are an investor right off the bat?  Do you usually ask for their contact information?  Do you have a proven way of following up with them on a periodic basis?

@Ryan Mortimer Interested in knowing the numbers on your first build.  Would you mind sharing the details?