The most basic question about RE income

[Jordan Feiner]

I'm still new so bear with me, if I'm looking to net $350k from a buy and hold portfolio assuming my doors are netting $200/month does that mean I need roughly 146 doors?  that seems like a large portfolio.  Am I missing a sizable tax loophole or reduced tax rate? I live in Los Angeles, does that mean my net for the doors should be higher?

[Brett Goldsmith]

Depends on the rental income from the properties you are purchasing. If you put a large enough down payment on a property in LA or purchase it cash you will make more than $200 a door. It's about ROI, risk, equity position, appreciation, not doors. If you make 10% Annual ROI on 3.5M capital invested that would be 350K a year. If you make 15% Annual ROI on 2.33M invested that is 350K a year, or 1.75M at 20% Annual ROI.

I personally am not looking to purchase SFR's or small MF properties that only make $200 a door. If it was a large out of state apartment complex I may feel differently depending on all the numbers and factors.

Hopefully this helps.