A Realistic Goal? 10k/month in 10 years

[Sam Washburn]

Hi I'm a total newbie. All I know right now is that I want to build passive income through rental properties.

So, I'm just going to throw this out there as a starting point to help me set some expectations...

I currently have about $10k to play with right now (and probably could allocate more if needed) and in 10 years I would like to be making $10k per month in rentals.

I also have quite a bit of time to pour into this. I work from home at night and have nearly every afternoon/evening available to work towards this.

How realistic is this goal?

Thanks! I'm looking forward to interacting with you all more as I learn the ropes.

Sam

[Cory Binsfield]

Hi Sam,

This is a great goal to shoot for and I see no reason why you couldn't hit it in ten years as long as you keep your eye on the prize and do not get discouraged or distracted.

The trick will be tightening your goal as you start with your first property and then get a feel for what it's like to run a rental.

I started with a goal of ten duplexes in 10 years and attained it after 5 years. I then changed my goal from duplexes to small multi-family's after I realized how fun it was to build a portfolio of passive income properties.

I would research your marketplace and try to buy in a target area that is as close to your home as possible. From there, I would become an expert in the area and make sure you don't deviate from your target market.

Ideally, the area would be 20 minutes or less from your home base.

Make sure you chose your target area carefully. It should be a desirable rental area with decent schools, proximity to public transit and shopping and a growth trajectory that is either stable or on the rise. These areas tend to cost more to purchase but it will pay off in the long run due to easy management. Bottom line, nice properties attract nice tenants.

Good luck and whatever you do, don't give up until you have reached your 10k/mo.