Setting up a target of $5K per month in cash-flow.

[Munir N]

I have been in IT profession for about 20 years. Even after these many years, there is no guarantee that I will be spared during next company-wide layoffs due to economic conditions.
I hate it and want to kick them before I get kicked.
I have much interest in RE since last few years, and have learned about it during my spare time (which almost non-existent). This interest born after I bought a property here in No. Cal as my primary residence and saw the appreciation going out of the roof. (It certainly came down in last two years but I still have some good equity in it).

I also have done few RE courses and following some online resources, including this one, during that time.
I even bought 3 properties on eBay and then ended up selling them there (with almost no profit).

I also bought an REO in Atlanta with all cash last year but still not sure what I am going to do with it.

So now here I am, wanting to get into REI so that to make living out of it.
The most ideal situation for me will be to have some (or many?) rental properties to generate a steady monthly cash flow, and also do few buy-rehab-sell per year to generate extra income.
My target would be to make at least about $5K per month from rentals and at least $15K per fix-upper, doing about 4 of these each year.

Do you think it is a reasonable goal for someone with very minimum RE experience ( but a lot of enthusiasm and energy, and of course some cash in hand) ?

I am already looking (and need help of gurus here) to identify which markets I need to explore for good rental properties.

Please help this newbie and make it a success story for BP :lol:

-MN

[Will Barnard]

Absolutely an obtainable goal with some hard work and some education. Right here on BP is a great start to that education.

Secondly, as MikeOH stated, buying an REO, or any other property for that matter, without at least one exit strategy is a recipe for failure. Having the ability to pay cash for properties puts you in the driver's seat, but you must have a plan BEFORE you buy.

$5,000 a month in cash flow from rentals is no easy task and based on receiving $100 per door per month, you obviously would need 50 doors to reach that goal. Buying 50 homes can take several years or more, but a large amount of doors can be obtained in one purchase through apartments, or perhaps in other commercial purchases.
One buy, one loan, one location, multiple doors, you get the idea.