Starting today what would you do to get to $25,000/month cashflow?

[Gail Greenberg]

Hi,
I've done some flipping and I'm now looking to buy and hold. My goal is to get to $25K/month cashflow so I can afford to donate cash and my time (as a marketer) to charities. I'm trained in buying big multi-family properties but it seems the cashflow as a percentage is better on the smaller properties. My question to all you experienced people is: If you had to start over, what would YOU do to get to $25K/month as directly as possible? THANKS!!!

[Jon Holdman]

A 10% cash on cash return would be pretty good for rentals. $25K a month (lets say pre-tax), is $300K per year. That means you need $3,000,000 of your own cash invested. Now, perhaps in the right spot with a lot of work you could get 20% COC, so only $1.5 million invested. So, the real question is what's the fastest way to earn a few million that you can invest? That would be very dependent on your skills and experience. If you're making money at fix and flipping, perhaps the best course. Keep the best rentals, invest the money from the flips into more rentals, 1031 into larger and larger properties.

You can also earn more from your rentals if you self manage. But $300K a year is likely to require hundreds of units and managing those would be a full time job.