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Updated almost 6 years ago, 02/07/2019

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Jim Edward Walker
  • Paris, TX
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6
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Rentals To Achieve Goals

Jim Edward Walker
  • Paris, TX
Posted

I've watched several webinars with Brandon talking about rental income. His thing is making at least $100.00 off each unit. He does give examples of where he is making more.

My goal is to make $2,000 a month so that I can end my 9 to 5 and start doing other real estate investing. From what I've seen that is not a crazy untouchable figure.

Using Brandon's $100 number I would need to have 20 units to achieve my goal.

20 units sounds like a lot and seems like it was take many years to get there.

I'm not getting any younger so is rentals the best place to start or should I work into that after I'm up and going?

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Replied

If you are BRRRR and you have the upfront capital it should be as easy as buy/rehab the first one in cash, get your money back out through LOC or COFR, do the same for the second, the third, and so on.....

As long as your able to have this capital locked up for the time it takes to acquire and assuming you kind find houses that meet your capital criteria there is no reason this can't be done in a fairly quick fashion. 

Others use the method of financing and then using the increased ARV of the house to make their capital then reinvesting the gained capital. Both methods are viable and are the driver for being able to grow the portfolio quickly. Otherwise you are waiting on how fast you can grow your savings.

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Jim Edward Walker
  • Paris, TX
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6
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Jim Edward Walker
  • Paris, TX
Replied

Thanks for the input Jared. I've heard Brandon talk about the BRRRR method before. I'm not 100% sure what that is so I'm going to dig deeper into the forums.

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545
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Ray Johnson
  • Irvine, CA
613
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545
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Ray Johnson
  • Irvine, CA
Replied

@Jim Edward Walker The number is definitely achievable, It just depends on your plan and how you plan to execute it.

Because you have a 9-5 job, you will need to dedicate time outside of work to get mostly there, this means you will basically have a part-time job starting your Real Estate business, this is where I've seen many fail due to lack of discipline or not wanting to give up that playtime, treat it like a paid job. When I started investing I dedicated a minimum of 3 hours in the evenings on weekdays, and up to 8 hours on Saturday and Sunday, searching for deals, visiting properties, running the numbers, analyzing deals and neighborhoods, etc..

I would go to the local Home Depot in the morning before work and after work every few days, and on Saturday mornings to take pictures of the Contractor vans that had advertising/company Brands on them, then research them online, I did this to build a list on contractors that I would use to get quotes for rehab cost once I found a property.

In addition to getting on Wholesalers list, get on all of the public sites like HudHomestore, HomeSteps, Homepath, Redfin, etc.. and setup alerts on your phone so you get instant notification once something comes online.

Get practice analyzing the deals that come from Wholesalers, most of those deals will not pencil out with good profits but it will give you practice gathering Comps, pricing rehab cost on a project, etc. Do the same with properties on the MLS, most of these will definitely have little if any profit unless you're getting short sales, or old listings nearing expiration.

Depending on your financial situation, you may not have to purchase one property at a time to get to that 20 property target, You may be able to purchase Duplexes, Triplexes, Quads, or if you really have a decent down payment, a small multi-family property like a 6 unit building can be mixed into your portfolio to get you to that 20 unit target quicker, also you may get some deals that are more than $100 per unit in cash flow.

I see you're in Tennessee, I was in the Nashville area looking at properties late last year near Vanderbilt University, I didn't find any good deals but I was told I needed to get further outside of the Nashville area to get the deals. I only invest in heavily populated areas so I had to pass on the Tennessee suburbs.

That's the other thing, define your business model so you don't waste time in this process, the more you have planned the easier and faster things will go for you.

Good luck! 

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Jim Edward Walker
  • Paris, TX
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6
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Jim Edward Walker
  • Paris, TX
Replied

Thank you Ray, that was a lot of useful information. I do need to work on my plan some.