Complete Newbie: Is my goal viable? $7-8,000/month passively?

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Complete Newbie: Is my goal viable? $7-8,000/month passively?

Soobin Oh
Portland, OR · Member since 2016 · 3 posts · 0 votes

Hi everyone!  Complete newbie here doing some initial research on how real estate investing might fit into my life.  First, let me say that I completely understand that this is not a get-rich-quick scheme and that this is going to take hard work.  But I am wondering if this is possible:

As a doctoral student of early childhood education, I want to continue doing research and working on consulting projects with schools.  It makes no money, in fact, I'd love to work with schools that have no money so that I can help them.

My goal is to set up relatively passive income streams so that I can focus on my research.  Is it possible to get to a point where I own rental properties, outsource management, and work 10-20 hours per week on my properties so that I can focus on my research?  Can I generate $7-8000/month of income from rental properties with these kinds of hours? 

I understand it will take dedication and hard work to get to this point, but is my goal even viable?  I need to hear it from people who aren't just wanting to make deals with me.  I have a little earnest money to bring in.  I have partners who might be interested in privately financing.  Thank you for helping me out

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Kevin Siedlecki
Investor · Madison, CT · Member since 2014 · 710 posts · 458 votes
9y

@Soobin Oh, any number is achievable. In the buy and hold business, you could easily do it with less than 20 hours per week of work. You just have to put in the work to find the right properties up front. Once you have those properties, if you outsource management, you won't have to spend more than a couple hours a week keeping up with things and managing your manager. If you had $500,000 to work with, you could probably get to your $7,000 number in just a couple months of 10-20 hour weeks. The challenge will be putting together the financing on those deals, and making that many properties profitable if you don't have that cash to get started.

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  • Kevin Siedlecki
    Investor · Madison, CT · Member since 2014 · 710 posts · 458 votes
    9y

    @Soobin Oh, any number is achievable. In the buy and hold business, you could easily do it with less than 20 hours per week of work. You just have to put in the work to find the right properties up front. Once you have those properties, if you outsource management, you won't have to spend more than a couple hours a week keeping up with things and managing your manager. If you had $500,000 to work with, you could probably get to your $7,000 number in just a couple months of 10-20 hour weeks. The challenge will be putting together the financing on those deals, and making that many properties profitable if you don't have that cash to get started.

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  • David D Painter
    Member since 2016 · 143 posts · 157 votes
    9y

    @Soobin Oh  your goals are very achievable, just not overnight.  I buy and hold good properties. I only buy screaming bargains, keep them up, try to get good tenants and keep rates below market so good tenants don't ever want to leave.  I manage my own properties and average less than 1 hour per month per property including record keeping. Good luck.

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  • Ali Boone
    Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
    9y

    Hi Soobin. I think it's all completely doable. And I'd say don't think for a second you'd even need to spend that much time per week on your properties if you set it up right. I own several rental properties (out-of-state from where I live because CA prices are ridiculous) and I spend an hour or less on them a year when everything is going normal. When everything isn't normal, it's still minimal time. It's all about using a property manager. Then after that, you want to just be sure you are running all the numbers right and making sure you are on track to hit your cash flow goals. 

    Totally doable!

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  • Michael Boyer
    Investor · Juneau, AK · Member since 2015 · 980 posts · 741 votes
    9y

    Neat question Soobin. I think many people use real estate for income so they can pursue other goals. That is a neat thing about buy and hold rentals--you don't have to hang out there all day and watch them, freeing you to research.

    That said, I think it is not the numbers but the interest and passion in REI that may be your largest challenge. If you really enjoy the process of real estate, I think you could reach your financial goal.

    If it is just about a number per month, that may not be sustainable long term. For example, do you enjoy looking at properties, running the numbers, thinking of ways to add value. These are key even if you farm out management. 

    Or if you are working on your properties some (10-20 hours) I would see if you can find some aspect you really enjoy. It may be maintenance, showing units, turning them around between tenants, fixing the property up, etc.

    I mention that because there may be some ups and downs (financially and emotionally) and long term, an interest in the property, the people, and the process will probably sustain you and help you reach your financial goals. 

    Best of luck!

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