Looking for feedback on investment strategy

[Jason Schaefer]

Hello BP,

It's been a few weeks since I introduced myself and I wanted to get some feedback on my investment/exit strategy as it is constantly evolving.

Here is a little background to tie everything together. A little over 6 years ago I left a corporate job as an IT manager and started an IT consulting business and it's been a blessing. My wife and I paid off all debt except our primary mortgage and are pulling in just over 200k a year. Instead of buying toys or moving to a bigger house we both want to use our money for nothing but investing.
Our goal is to generate enough passive income that my wife can quit her job and I can back away from my business by hiring people to do what I do and manage it from a far and pull a smaller salary. To reach this goal we want to buy 5 sfr properties per year for the next 5 years. We will use the income generated from the properties to buy additional properties and at some point anticipate the combined income from all the properties will help us add an additional one or two to this portfolio. We want a passive income of $13-15k per month from our investment properties. To achieve this we are looking at long term buy and hold properties that cash flow at least $150/month ideally $250/month. 25 properties at $150/month doesn't achieve our financial freedom goal but once the debt service is paid in full and after the 50% rule we should be in good shape. We have $150k to work with now and should be able to save up the same amount each year until we reach our investment goal.

Our exit strategy is either sell to the existing renter, put it on the MLS, or by word of mouth such as BP MarketPlace we can sell to another investor.

I would love to invest in Southern California. The clients my business supports range from contractors, plumbers, electricians, attorneys, accountants, etc so building my team was a piece of cake. Finding a property that will help us reach our financial freedom goal is not so easy. We’ve been scouring Southern California for at least 6 months without one deal to show for it. I haven’t given up on So Cal yet but feel frustrated to say the least.

Since California is next to impossible to accomplish this goal and with the help of some great BP members we have honed in on the Dallas/DFW area for now. This will probably change as the years pass and we would like to diversify in other markets as well.

I know this goal is definitely feasible. Based on our savings, income, investment strategy, I would like to get the collective input of BP members if we are choosing the correct strategy for our goal. Is there something else we should keep in mind? Should we look at a different investment area? Should we look at NNN instead? If there is one tip that rings out from the podcasts on what separates successfully investors is persistence so we are ready for failure and of course ultimately, success. Thank you everyone.

Jason