Analysis Paralysis - Advice for Next Steps

[Justin R.]

Hey everyone,

I believe I am in a bit of analysis paralysis and am seeking advice about where to go from here. I have listened to the BP podcast for a little over two years and I usually listen to an episode a day.

I like the investment method of purchasing multi-family properties via buy-and-hold BRRR in secondary markets. I had narrowed a starting idea down to buying a duplex to a quadplex with a purchase price of no more than $100,000, but to me, this plan may be unrealistic right now, given the state of the housing market. I am motivated and open to other suggestions, but I feel stuck.

I had created a RE Business Plan several months ago, and it is as follows:

Mission Statement

• Just a man trying to make his way in the universe by striving to deliver affordable rentals to those in need while applying honesty, humility, and servant leadership.

Goals

Daily Goals

• Engage with like-minded positive people focused on success.
• Listen to an episode of BP every day.
• Listen to an inspirational or motivational speech every day from a successful person.

Short Term

• Own one positive cash-flowing rental property by the end of this year.
• Acquire an affordable or organic RE mentor for guidance and continued mentorship.
• Read one real estate and one business book a month.
• Continue to pay down bad debt and increase savings for investment.

Long Term

• Financial independence with a monthly passive income of $50,000.
• To own a diverse and profitable real estate investment portfolio that will continue to generate generational wealth.
• Break free from the 9 to 5 workflow.

Timeline

Ultimate Timeline

• Retire in 10 years.
• Financially free from the 9 to 5 workflow

Reasonable Timeline

• This year
• Buy and own one positive cash-flowing rental property by the end of this year.
• Next year
• Buy and own three favorable cash-flowing rental properties.
• three years
• Buy and own ten diverse and positive cash-flowing rental properties.
• five years
• Buy and own 20 diverse and positive cash-flowing rental properties.

Market

Low-Income, Secondary Market (Outside of Metropolitan Centers)

Criteria

Solo Investing

• Loan to Value = 80% to avoid MPI
• Max Purchase = $75,000
• Cash-Flow = $1,000 to $2,000
• Rehab Cost = Less than 70 % ARV
• Timeline = 3 to 6 months BRRRR

Partner Investing

• Loan to Value = 80% to avoid MPI
• Max Purchase = $100,000
• Cash-Flow = $1,000 to $2,000
• Rehab Cost = Less than 70% ARV
• Timeline = 3 to 6 months BRRRR

Flexibility

• I know the most about BRRRR, and so do my partners; thus, it is the primary method of investing I and we have considered.

Marketing

• Create online marketing tools via websites and social media. Direct mail is also appealing.

Financing

• Currently, conventional loans are the primary choice, with the most experience acquiring them for two personal homes.

Dealing

• Ideally, following BRRRR steps will allow for maximum profitability. The goal is to hold on to these properties and rent them out, but should their expenses or vacancy continue to outweigh their profitability, selling to breakeven or for profit would be a potential exit strategy.

Team

• Mentor
• CPA
• RE Attorney
• Marketing Specialist
• Property Manager
• Contractor

Financials

• 9 to 5 Income = $150,000 Gross
• Credit Card = $20,000 credit limit
• Equity = $10,000 Cash
• Credit Score = 700