How Many Rentals to Net $400,000/month

[Dat Chung]

The title says it all, that is just my end goal with this, (the more the merrier, obviously lol) - or I guess, we could always just back-trace the figures, what's the average net per unit? per property?

[Theresa Harris]

Do you really mean per month or per year?  How much you net is going to depend on how much you put down (and the quality of the rental).  If they are fully mortgaged (ie 80%), you'll be lucky to average $100/month/door with current interest rates.  If they are paid off, then it really depends on the rent and operating costs.

[Dat Chung]

I really mean, a month.. and with the entail of $100/month net per door, that'd be 4,000 units.. (O_o) that's a life goal right there! lol, thank you!

[Caleb Brown]

Oh boy, another post about what amount of doors equals x amount per month

[Chris Seveney]

@Caleb Brown

Haha

Mo money Mo problems.

If I want $400k a month I am in commercial real estate and luxury office in downtown area like K st dc etc.

Or as the original poster put it- just don’t finance them and pay all cash, then you could do it with 40 luxury rentals at $10k a month.

Now to rant - it’s great to have a goal, but start with one and see how it goes….

[Caleb Brown]

Quote from @Chris Seveney:

@Caleb Brown

Haha

Mo money Mo problems.

If I want $400k a month I am in commercial real estate and luxury office in downtown area like K st dc etc.

Or as the original poster put it- just don’t finance them and pay all cash, then you could do it with 40 luxury rentals at $10k a month.

Now to rant - it’s great to have a goal, but start with one and see how it goes….

 Next post, "How do I make 1M net per month?" lol

[Russell Brazil]

You'll need a portfolio that's $100,000,000 with no leverage.

There is less than 10,000 Americans with a net worth that high.

[Theresa Harris]

Quote from @Chris Seveney:

Now to rant - it’s great to have a goal, but start with one and see how it goes….

 start with one that is achievable and see how it goes

I modified it ;)  $400K a month is not realistic especially to start with.

[Daniel Yohannes]

Depends on which market you're looking in. My advise would be to obtain properties in multiple markets

[Stetson Oates]

Quote from @Russell Brazil:

You'll need a portfolio that's $100,000,000 with no leverage.

There is less than 10,000 Americans with a net worth that high.

 That cant be right, there's at least 40,000 RE investors on YouTube worth that much!! LOL

[Dat Chung]

Quote from @Caleb Brown:

Oh boy, another post about what amount of doors equals x amount per month

 could just answer without being a dick. :)

[Marcus Auerbach]

$200/door has been a long standing average in Milwaukee. With current rates, inventory and demand you may have to bring a little extra down payment.

But real estate investing is not a great cash flow play, it's more a net worth game. If  cash flow is what you want buy/start a business.

[Joe S.]

Quote from @Stetson Oates:

Quote from @Russell Brazil:

You'll need a portfolio that's $100,000,000 with no leverage.

There is less than 10,000 Americans with a net worth that high.

 That cant be right, there's at least 40,000 RE investors on YouTube worth that much!! LOL

😂 

[Joe S.]

Quote from @Dat Chung:

The title says it all, that is just my end goal with this, (the more the merrier, obviously lol) - or I guess, we could always just back-trace the figures, what's the average net per unit? per property?

I couldn’t tell you, but since we’re dreaming big what would you do with 400,000 a month?🧐
I’m having a hard time wrapping my mind around what I would do with that much money. 

[James Hamling]

@Dat Chung so to state the obvious, your somewhere around 0, correct? And with no business ownership knowledge or experience, correct? 

Because what's obvious to any who hold any real potential of ever getting near to such a place is the dilemma of SCALABILITY. 

See, there is 0% chance a person would get anywhere close to this # solo, that should be obvious that it will take an organization of people. And as a member to an organization that manages well over 10K doors I can say from 1st hand knowledge it would take a LOT of people. 

On average the best efficiency one could realistically strive for is 200 doors per PM, so we are talking a couple dozen or so PM's on staff. Than we have to have 1-2 maintenance coordinators to manage the "maintenance circus". Than we need on-staff inspectors for the move-in/move-out process and being boot's on, 2-4 persons there. Now you will need dedicated leasing agents to supplement PM's because the # of doors this will take it's just not realistic to put it all on so few PM's, so we got at least 4 leasing agents. 

Next we have accounting, need at least 2 if not 4 for this. And seeing as it's an organization level with so much staffing we need HR, middle managers and organization managers.

So now we are at a place that the staffing "suck" eat's up the revenue of a couple K doors, so we need more doors to make up for that, AND as we add doors we add more staffing requirements, which add's more "$-suck" so need more doors to get over that and it's a lovely feedback loop....... 

So no, not 4k doors, try closer to 12k. Yes, that's not a shot from the hip it's based upon real world figures of things as I see/experience them. 

So it all comes down to building a MASSIVE organization for this space. 

I know some very big players in this industry, millionaires many times over, and they are not close to $400k monthly net on payroll. They earn very well, but no not a $5m annual salary, lol. Bonus checks like that sure, but that's when tapping some of the equity accruals. 

Talking JUST on normalized revenues, payroll self $5m annually...... Lol, good luck with that. All it takes is building a staffing of about 50, and raising "Cardone" level capital..... 

[Michael P.]

Why real estate. Play for NBA. Get that much per game played. 

[Account Closed]

The cashflow per a unit changes every year. First year might be $100-200 but after 5 years could be $500+ cashflow a unit depending on area. It would be really hard to make 400k a month in cashflow but off equity/appreciation not that crazy if you have a bunch of commercial buildings. 

[Bud Gaffney]

This might be the worst post in BP history. It has to be Top 10.

[Steve K.]

All of them. 

[Alecia Loveless]

@Dat Chung I believe $200/door/month has been the average metric for a long time. It’s harder to accomplish now with higher interest rates but still attainable.

[Adam Bartomeo]

You would need somewhere between 1,800 - 3,000 doors. There are a lot of variables but this is a good ballpark number.