50k a month by 50, possible?

[Joshua Gutierrez]

Hello BP,

I feel like I am in an outstanding position to make my money work through real estate investing and at the same time feel so stuck deciding on which strategy would be a good fit for me. Let me break down my current situation a bit:

- I’m 39

- Marine combat veteran

- Retired law enforcement offficer

- $8,500 a month tax free from military compensation and law enforcement retirement combined.

- $300k cash to start investing with

- Make extra cash from teaching online at a university and retail real estate since last September (not excited about it though. Retail side stresses me out)

My goal is cash flow. I'm drawn to David's BRRRR strategy and his book on long distance real estate investing. I also make some money by passively investing with a good friend of mine who is doing trustee sales her in California. Basically, I cut a cashiers check, he uses it to purchase a trustee sale, and I get back 1% of the purchase price within 2-3 weeks. It's a cool little strategy to make an extra few grand a month. He also gives me the option to keep the property and partner up on the flip side or whatever strategy we decide fits best with the property.

I've surrounded myself with good friends that I have known since high school that are doing really well investing here in Ca, however, neither of them like the idea of investing out of state and say it's too risky for them. Additionally, the BRRRR method is difficult here in Ca unless you have lots of money already. And I say that mostly from other people saying it, not from me researching where it may be a possibility here in Ca.

I’m writing this because I’m pretty confident there are many experienced investors here that would know exactly how to best leverage the money I have to begin with and I’m hoping to hear from you. I’d like to get to 50k cash flow by the time I’m 50 years old. I’m counting the $8,500 I already get.

If you would like to know more about me and my personality feel free to visit my IG page @josh_g____ (4 underscores after the “g”)

Can’t wait to hear from you all! What do you all think!?

[Dani Beit-Or]

@Joshua Gutierrez

What a great goal and question. 

I was wondering, since this is a year old post, have you any closer to that goal?

Do you feel you have an answer or a formula? 

I took the time to think about is, and here's my take - reverse engineering:

• Goal $50,000
• cashflow/property once paid off: $1,000
  Property purchase price $100,000 - out of state (not in CA)
  
• # of properties needed:  50
  Cash needed 25%: $25,000 - assuming 20% down + closing costs + mostgage cost + some make-ready 
  Cash per portfolio:  $1,250,000 + mostgages

If you don't take in any cash flow and use it towards extra principal payment you could possibly get it paid off in 11-13 years.

If you don't have $1,250,000 at your disposal you should incorporate a BRRRR that will enable you to build it but it will slow you downs.

OR

If you are able to generate $300/property in cashflow per month (after all expenses) - it is doable than every 10 houses will generate you the needed downpayment for another house about every 8 months. 

For example: when you get to 10 such houses after 8 months you'll have the downpayment for house 11. 11 such houses will buy you 12th house in 7.5 months . . . . 

Once you have a basic MO you'll be able to improve it and accelerate it. 

when you are 10 years from the goal starting slow is the last thing you want to do BUT 0 to 50 houses is hard to digest. 0 to 10 is much more comprehendible