Goal: $10k/ month in rent. Your tips to get achieve this?

Member since 2018 · 2 posts · 7 votes

Just started listening to the podcast and researching real estate investing and am curious to see what you recommend for the foundation building steps from the beginning of this journey in order to achieve $10k/ month in rents. What beginning steps will set me in the right direction to accomplish this? Thanks.

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Brian Garrett

Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes

Your goal should really be "cash flow" and not "rent" since the net amount to your pocket is what matters.

$10k/month in rent looks a whole lot different than $10k/month in actual cash flow so keep that in mind.

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JD MartinBusiness Member
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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
6y
First step: determine how and why you came to that number ($10k/month). If that number is arbitrary, or just something that sounds nice to have in a month, there's a reasonable chance you will never get there.
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Stephanie Money
Houston, TX · Member since 2019 · 28 posts · 27 votes
6y
I don't think it is fair to say he will never get there.. but I am curious to understand why you think that?

Originally posted by @JD Martin:
First step: determine how and why you came to that number ($10k/month). If that number is arbitrary, or just something that sounds nice to have in a month, there's a reasonable chance you will never get there.

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Chandler Davidson
OP
Member since 2018 · 2 posts · 7 votes
6y
@JD Martin its what my wife and I make roughly a year, so the idea is to replace our incomes in total with rental properties. So looking for where to start. Thanks
7 Reply
Jeffrey L.
Rental Property Investor · Irvine, CA · Member since 2018 · 35 posts · 19 votes
6y
Chandler, I had similar question when I first get started. Of course, we will not be able to go from $0 to $10k overnight, but I found the following high-level plan useful for myself, hope you can make some use of it too.
1. Research and decide on a local rental market that you feel comfortable proceeding
2. Arrive on an annual ROI % that is reasonable for that market
3. Calculate in reverse to come up with a total capital required to generate $10k / month in rent
4. Start investing by coming up with such capital for the 1st deal, either traditionally (like from savings) or creatively (like syndication, loans, relatives)
Jeff
10 Reply
Willie Page
Rental Property Investor · Racine, WI · Member since 2019 · 18 posts · 20 votes
6y
Originally posted by @Chandler Davidson:
Just started listening to the podcast and researching real estate investing and am curious to see what you recommend for the foundation building steps from the beginning of this journey in order to achieve $10k/ month in rents. What beginning steps will set me in the right direction to accomplish this? Thanks.

I have the same goal I just bought my second SFh and I close on another this week. I have a family lined up for the first property and will be working on the second to get it rent ready I also plan to buy one more by the end of the year. So you can do it. And I I just started 3 months ago plus I’m almost 50

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Frank Geiger
Rental Property Investor · NC · Member since 2018 · 776 posts · 776 votes
6y
Sounds boring but find a market, become an expert at some strategy, then just keep buying properties that meet your criteria and eventually stack up to 10k a year. Then decide whether to keep the debt service or pay it off
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Brian Garrett
Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes
6y
Your goal should really be "cash flow" and not "rent" since the net amount to your pocket is what matters.
$10k/month in rent looks a whole lot different than $10k/month in actual cash flow so keep that in mind.
12 Reply
JD MartinBusiness Member
Moderator
Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
6y
Originally posted by @Stephanie Money:
I don't think it is fair to say he will never get there.. but I am curious to understand why you think that?

Originally posted by @JD Martin:
First step: determine how and why you came to that number ($10k/month). If that number is arbitrary, or just something that sounds nice to have in a month, there's a reasonable chance you will never get there.

Because you rarely end up at your desired destination by accident. When was the last time you went to the airport, told the ticket gate operator "Surprise me!", and ended up someplace that when you landed you said "This is exactly where I wanted to be"?

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JD MartinBusiness Member
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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
6y
Originally posted by @Chandler Davidson:
@JD Martin its what my wife and I make roughly a year, so the idea is to replace our incomes in total with rental properties. So looking for where to start. Thanks

Excellent, so what you are looking for is income replacement, like for like. Have you determined that what you make now in a year is all you will need to make in the future?
If you are pretty certain this is your annual number, there are a number of ways to get there - it depends on where you are starting from and how fast you want to get there. If you have no money saved, you can flip houses to make bigger chunks in one shot in order to start accumulating capital. In general, however, most people looking for permanent income replacement without a job need to buy and hold rental property, whether single family, multi-family, commercial, or some combination of all three.
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Brent Paul
Rental Property Investor · Shakopee, MN · Member since 2015 · 985 posts · 374 votes
6y
10k a month in cash flow is an achievable goal.
Do you know what the prices of houses are in your target area? What about multifamily? What do they rent for? Once you have that info you can narrow down pretty quickly in excel how many SFH or multifamily you will need to meet your goal. Within 5 minutes I was able to determine I could meet my goal with 10 houses or 5 houses fully paid off.
You might start with checking out some local real estate meetups in your area. Most of them are free and not only is there great information, but you get to meet other real estate professionals. I have met several wholesalers through meetups that have brought me several deals already. In the meantime start reading the forum posts here and listening to podcasts.
Do you have any money in savings? You can start by putting 3.5% down (FHA) or 5% down conventional you can househack with a duplex or even rent out a room on a SFH. From there you can save up for the next one.
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Alexander Gonzalez
Flipper/Rehabber · San Gabriel, CA · Member since 2019 · 12 posts · 1 vote
6y
@Chandler Davidson
https://www.biggerpockets.com/blog/generate-10000-passive-income-monthly-quitting-day-job?utm_source=newsletter
There was a blog post on BP earlier this month that talked a bit about achieving your monthly financial goal. It might be a bit of a tangent, but definitely worth the read nonetheless.
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Michael King
Rental Property Investor · Navarre, FL · Member since 2019 · 913 posts · 640 votes
6y
Originally posted by @Chandler Davidson:
Just started listening to the podcast and researching real estate investing and am curious to see what you recommend for the foundation building steps from the beginning of this journey in order to achieve $10k/ month in rents. What beginning steps will set me in the right direction to accomplish this? Thanks.

Chandler welcome to the forums! You've already taken the first step by stopping by here and listening to the podcasts. Seems like there is a myriad of ways to make money from real estate. I myself just started the journey involuntarily 3 years ago when I rented out a house I'd bought to live in (but it was too small for my wife!). It brought in about $300 or $400 a month net, so I repeated it a couple of times. My intent was just to buy houses for my kids to have or sell as their lives needed, I wasn't really into it for passive income. Stumbled across BP on YT and reading books and listening to the podcasts have lit my fire. I have 5 houses now and looking to either buy a 4 or more unit multi or do some BRRRR.
It takes time and money. If 1 property nets you $100 a month, then 10 of those is $1000....you get the picture. I think for low initial startup cost, coupled with sweat equity, the BRRRR strategy would be the quickest and cheapest way to your goal. Only you can know that though.
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Jason Boritz
Developer · Los Angeles, CA · Member since 2019 · 76 posts · 22 votes
6y
@Chandler Davidson
You essentially want 10k in passive income from rental properties to create financial freedom.
First off, figure out how many properties you need to own at how much your being paid per property a month to reach your goal.
Then start working towards it. Simple as that.
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Nathan Hillier
Rental Property Investor · TN/OH/NJ · Member since 2018 · 71 posts · 39 votes
6y
Firstly I'd like to add that Jeffrey is spot on for the high-level planning that will help you greatly to understand how you're going to achieve your goal.
If I could add to Jeffery's post, i'd say that the first steps i'd say is to always be learning, read and study as much as you can in your free time. I'd also go as far as saying study what is directly important to you, but never
Second is to acknowledge the important of networking, and how sharing ideas and your goals with like minded individuals can open up a world of possibility and opportunity. I personally try to talk to as many investors as I can through email and phone calls as i can't actually network in specific markets since I live in Canada.
Third is to know what you're trying to achieve, in the sense of becoming an expert on it. In this case, it's passive income, so know how to analyse rental properties very well. Know what market you will invest in to achieve your goal amount, know whether its SFH or Multi family, and how you will scale to achieve your goals. Set systems and procedures for yourself for both analyzing properties, due diligence period when closing, and when you're pursuing properties. Setting and sticking to Rules and Guidelines has help me tremendously.
Either than that, just do it, and stick with it. Please feel free to reach out if you have any more questions or concerns, i'd be happy to share!
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Daniel Z Fang
Rental Property Investor · San Diego · Member since 2019 · 73 posts · 34 votes
6y
Originally posted by @Chandler Davidson:
Just started listening to the podcast and researching real estate investing and am curious to see what you recommend for the foundation building steps from the beginning of this journey in order to achieve $10k/ month in rents. What beginning steps will set me in the right direction to accomplish this? Thanks.

There are a number of ways to get 10k per month in rent and one of the most simple is to start acquiring doors. For SFH that cash flow 300 per Mo, that's about 33 homes. It's worth spending some time figuring out what you're really after as your mindset and skills will evolve with experience - what will you do after hitting that nunber? That's your real ultimate goal.

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Matt Carroll
Member since 2019 · 10 posts · 2 votes
6y
@Frank Geiger is that 10k a month rent or rent and cash flow ?
0 Reply
Cody F.
Rental Property Investor · Auburn, AL · Member since 2018 · 50 posts · 20 votes
6y
@Chandler Davidson
1. Live like a monk: want not need not. That means save like heck and don't buy anything more than you need. Maybe downsize to a shack. Eliminate payments, car, toys. I bought an 1100 dollar Kia with 205k miles on it. It's still running and gets 35mpg.
2. Hustle: get out there, find some abandoned houses, use that saved money to fix them up and flip those suckers. That'll get you capital to use so you can stop living like a monk and get into some cash flowing properties that'll give you savings beyond your monk lifestyle.
3. Roll baby roll: keep rolling up that dough to keep reinvesting. Supplement with the hustling techniques, and keep building up the portfolio and income. You'll be there before you know it.
That's how we got up to 42 doors and almost 20k gross rents by 28 years old.
Bonus: learn about creative ways to finance deals, that'll give you one of those Mario kart boosts too.
3 Reply
Account Closed
Investor · United States · Member since 2018 · 565 posts · 356 votes
6y
@Chandler Davidson
Just do it. No tips or advice will help. You’re either going to make it happen or wish you did 40 years from now.
1 Reply
Quentin Mitchell
Investor · Chicago, IL · Member since 2016 · 197 posts · 105 votes
6y
First have your strategy in place on whether it will be single-family, multi-family commercial, etc. After you have your clear vision figure out how many properties you would need for each strategy, then take action with your strategy and work on it until it's just about as perfect as can be, there will be mistakes that will be made but that is a part of the game. If you get good quick and then scale your business by recognizing deals quicker and also being able to bring in investors and possible partners which could help you get there quicker.
The better you become with your strategy the easier everything will become, but take action and keep your eyes on the prize.
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Brendan F. Nagle
Member since 2018 · 104 posts · 94 votes
6y
Assuming you meant Cashflow at 10k. The math looks like this. Per door CF at 150/month. 67 doors needed. At 250 its 40 doors. At 500 its 20 doors and at 1000 its 10 doors. Or a combination to meet your number. Now depending on your goals, ability and amount of time you want to spend this is achieve the goals. But it will require money for down payments, (Not always but IMO 100% leveraged deals won't cashflow enough). It will require time and effort setting up a process to find the right properties, time to purchase and close. Once you have 1-3 properties, scale up as you get more comfortable. Save any CF until you reach your goal. Have reserves for a roof, water heater, trashed unit. Once you are half way there. Figure out if leveraging more and adding units is your jam, or to use CF to pay off one unit at a time is your jam. A paid off rental cash flows better, is recession resistant, and may help you sleep at night. Good luck in your journey.
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