Starting in a few months

[Ronald Morris]

Hello everyone,

I have some great news finally. It looks like our adoption will be done in a few months meaning I can finally move forward with a few properties. I just wanted to run a few ideas and my current strategy by anyone reading this. I’m estimating the net cashflow goals with the assumption I’ll be refinancing to lower interest rates and that my goals will be met by the end of its time frame meaning 15k/mo at the end of 10 years.

Ill also mention here I’m starting with 100k and may put in more as things progress.

Knowledge: I've been researching/learning about 8 months or so. Most of my learning has been done on BP forums, BP books, BP podcast's, local REI meetups, analyzing properties and getting a job as a property manager.

Goals:

long term (10 year): 40 doors mostly MF 15k/mo net.

medium term (3-5years): 15-20 doors SFR/MF 3k-4k/mo net

short term (1-2 years): 2 SFR 2 Mf 800-1k.mo net and to work hard on finding the right people/working out as many bugs as possible.

Strategy:

I will be investing out of state as I live in southern California and my money ca go further elsewhere. My main concern is cashflow though I plan on BRRRRing most properties. My first two years actually buying I would like to buy two SFR then in year 2 buy two MF. Then in years 3-5 double that ideally to 4 units a year moving towards mostly MF. Going into years 5-10 I'd like to consolidate the SFR into an apartment depending on the markets I'm in. Also, between years 2 and 5 we will most likely be moving to Colorado when I have my computer science degree. There we will most likely move to a multifamily and take advantage of the 3.5% down FHA loan.

I am currently identifying markets to invest in but haven’t been sold on one yet. I am planning on partnering up on a few deals especially in the beginning but will most likely be at it solo for the majority of properties.

To me this is a fairly ambitious plan and I know it won’t happen perfectly or nicely at times, but I’ve always been able to go with the flow and adapt. I also realize how blessed and fortunate I am to have such a large sum to start with and can put in more. I also realize I could probably scale significantly faster with that much capital, but this is just a starting strategy till I get my feet wet and jump in. If anyone has any thoughts or suggestions by all means, ask me questions or challenge my though process it only help me clarify my ideas.

Thanks for taking the time to read my post if you'd like to message me privately feel free to!

[JD Gunter]

Welcome to the community! Congratulations on your adoption! 

Colorado Springs is a hot market, so some people here do invest out of state or in Pueblo. That said, I have investors buying in Colorado Springs from out of state all the time. It's all relative. A $300k SFH in a good neighborhood seems like a bargain compared to some markets and it seems expensive compared with others. Our economy is booming and Colorado Springs is a very desirable place for people who can work from anywhere.

I think you’re wise to start with a good nest egg and I like your plan. The hardest part is the start, but things will snowball once you get a few properties under your belt. Let me know if I can help and good luck.