Can I acquire 21 $200 per month doors in five years?

[Logan Jones]

I have been setting up my plan moving forward and I decided that in 5 years I want to be making $4,200 a month in passive income. I haven't found my first deal but it seems reasonable for me to hit this goal in five years. I just want to get a second and third opinion. Can I reasonably acquire 21 $200 per month cash flowing doors in my first five years?

[Darren Eady]

Hey @Logan Jones  I'm a fellow Utah investor and private money lender. I've done what you are hoping to do. Let's connect and I'll pass along some good info

[Douglas Larson]

Start with one or two and see what you think. If it's working then do more. I prefer a few rentals, a few flips here and there, a few wholesales each year and some land deals. I had 12 rentals at once in Utah just before the crash. I sold most at the right time and lost money on a few. I didn't default on a single loan but it was a stressful time. I came out of the tough times with a big net positive but you couldn't pay me enough to go back to that many headaches. I have a few rentals in management now and I manage a few myself. I delegate a lot better than I used to but I still think 21 doors would cost me my sanity!

Once you get a couple under your belt you will know if it's right to take on more.

[David Huynh]

Logan Jones it is achievable. Peek at the success stories, I acquired 24 units and got to that point in less than two years. Not trying to steal your post.
"Be careful what you wish for" is my post $190/door with real expenses in place.

[George P.]

Originally posted by @William Hochstedler:

@George P.

We had several properties being rehabbed at any given time.  When the banks basically stopped lending in the Spring of 2007 all of our exits to take out our hard money loans disappeared.  We couldn't refi for holds and retail buyers for our properties were starting to have trouble getting loans meaning that our properties that were finished and ready to go sat as dead weight while we were trying to liquidate.

Our $100-200/month cash flow on our stable properties couldn't support the debt service on the vacant/unfinished properties for very long and we ate through our reserves pretty quickly while fire-saling everything to make our private money whole.

The 20/20 hindsight is that we sold our best properties early because we thought we could weather it out with enough cash and prices weren't really dropping.  Looking back, we should have walked away from our poorest performing properties instead of trying to save them. 

There is no doubt that we were too highly leveraged (in the sense that our portfolio cash flow was not always covering our total debt service because of the unfinished/vacant properties) and we were relying on lax lending practices from the banks to grow.  We had a ton of equity but couldn't access it.

Our two biggest mistakes?  Not having property management dialed in and wasting thousands upon thousands on deadbeat contractors. 

 do you think if you were strictly buy and hold investor, you'd have had this problem?

[William Hochstedler]

@George P.

We were buy and hold investors.  When the loans evaporated we had no way to secure long-term financing to hold the property.  Only then did we start selling.

The problem was not hold vs flip, it was that we acquired properties on short term financing while we improved/stabalized them. It's what people on BP call the BRRR strategy.

[William Collins]

I have done it on my 1st 5 doors, and I am aiming to 10x it! :)

[Craig Moore]

Originally posted by @David Huynh:

Logan Jones it is achievable. Peek at the success stories, I acquired 24 units and got to that point in less than two years. Not trying to steal your post.
"Be careful what you wish for" is my post $190/door with real expenses in place.

 David,

This is awesome. Do you mind sharing your story?

[Account Closed]

Yes Borrow Borrow and Buy i acquired, 16 doors in 18 months, when i was 22 all i started that venture with was an idea and a credit card, i had high paying private equity job so i had outstanding credit and good banking contacts, was making about 4,720 in cash flow but also think the bigger picture about the equity you build thats what i always tell the people i consult, and how much value your properties will gain in the next 5 years. 

So yes 21 in 5 years is easy with good credit the right market and most importantly knowing what your doing. 

[Jamal White]

Go ahead and do it man. nobody is topping you but you. As long you adjust for inflation you're going to do great.

[Craig Moore]

Originally posted by @Account Closed:

Yes Borrow Borrow and Buy i acquired, 16 doors in 18 months, when i was 22 all i started that venture with was an idea and a credit card, i had high paying private equity job so i had outstanding credit and good banking contacts, was making about 4,720 in cash flow but also think the bigger picture about the equity you build thats what i always tell the people i consult, and how much value your properties will gain in the next 5 years. 

So yes 21 in 5 years is easy with good credit the right market and most importantly knowing what your doing. 

 I will be starting 1 year later than you (23). This is encouraging to read. Can I PM you for some advice?

[Account Closed]

Yes anytime no problem let me know if i can help @Craig Moore

[Bhekizwe M.]

21 is possible in five years.refinancing can be used to build the portfolio

[Matthew Paul]

Set your sights a little higher , $ 200 a door isnt worth the headache that goes along with them . I shoot for $ 500 a door plus .