Rental Property Investor · Austin, TX · Member since 2017 · 26 posts · 14 votes
My first purchase was a duplex in Austin, TX for $435k (110k down) with $3,200 month rent. I bought this remote and had some serious learning lessons. I have since moved to Austin and purchased a primary residence. I just got pre approved and have been looking in the Austin market again but have recently realized that Austin may be too hot for what my goals are. I have started searching on Roofstock. I like the platform and how remote purchases can be more carefree. I see myself either focusing on cash flowing SFRs all over the country as they come up or making a larger move for a remote apartment complex (8+ units).
I am looking for a mentor or someone who has done this before that can give some advice. My short term, long term goal is $5,000 month net rental income. The duplex cash flows almost nothing with the increasement of this years property tax.
Ideally, I would like an affordable cash flowing apartment complex but would also be open to purchasing ample amounts of SFRs. What routes do people suggest or have done themselves?
Investor · HI · Member since 2017 · 328 posts · 124 votes
7y
Hey @Account Closed. How many SFR do you estimate you need to reach your goal of $5000 per month? Would you say around 25 SFR at $200 per door? I ask because everyone's cashflow expectations are different. I owned a commercial MF remotely and it was tough.
Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes
7y
I like to buy SFRs. The key is not to own as many properties as you can and leverage to your eyeballs. The key is to scale and grow your portfolio and have them all paid off free and clear. Some will say that is letting your money sit as dead equity and I understand their argument.
My position is I get to own and net a high amount per house. I can net $10k a month with 10 houses with zero risks. This is a much better life than trying to achieve the same $10k leveraged with 50 units netting me $200 each. One strategy you can lose everything the other you can't. One I have freedom the other you are stressed out.
James, why are you looking out of state? If I were you I would be looking in San Antonio. It's not that far away the price point is much lower and is a great rental market. I would scale there. Much easier to handle something closer than further.