Advice on setting myself up for success

[Jason Reed]

Well I am a complete newbie but learning a lot over the last three months. I think I am finally ready to get in but could use some advice and lessons learned. For now, I am looking to buy and hold as opposed to flipping. I have found that I can cashflow easier out of a MFR then a SFR. Please provide feedback on the first deal I am considering. I found a three family home that currently has renters in all three that is selling for 30K. For the sake of easy math, lets say I paid the full asking price of 30K. With 1500 gross per month I would assume 750 for expenses. For the other 750 I would pay mortgage and generate some cash. I figure like this.....7500 downpayment and 2500 closing which puts me 10k out of pocket. 15 yr loan at 5% is about 180/month. I would strive to pay the note off in 3 yrs which would require payment of 450/month. Unless I am missing something, this seems feasible. However, I would like to purchase at least one house every 10 months. I really don't want to be out of pocket 10k each time for upfront costs, but I also want any rent cashflow paying the note down. Until I own properties fee and clear, any suggestions on how to pay upfront costs on house 2,3,etc?? Also, bank tells me I can only have 4 mortgages at any one time including my personal residence. One final very broad question for those who have succeded.....how have you become job optional through the process I have explained. By my math, it would take at least 10 yrs before I could even think of leaving my job. Sorry for the long post, just excited to get off the ground.

Thank You,

J.

[Account Closed]

Based on the information you provided this sounds like this may be a viable deal. You still need to do your due diligence though. What is the condition of the home? Is their any deferred maintenance? How about the location? What is the rental market like?

As far as building a cash flow that allows you to quit a full time job. That takes time. It sounds like you have a doable plan and you may find some ideas on building cash for financing deals. For most RE is not a get rich quick activity. Generally it takes time, hard work and some sacrifices to get there. I happen to enjoy the adventure and am doing well for myself now, but my wife and I have been investing for while.