Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
General Real Estate Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated 28 days ago, 11/27/2024

User Stats

3
Posts
1
Votes
Sam Huang
1
Votes |
3
Posts

Slow progress & delayed gratification to Financial freedom

Sam Huang
Posted

Happy Thanksgiving to the BiggerPockets community!

I am looking for feedback on what to do next with my real-estate portfolio.

Current situation: 

- We have 5 rentals properties spread across Tulsa & Florida (9 doors)

- Equity is probably around ~600K and cash-flows ~2K/month.

- We have busy but well paying jobs and don't like to spend time in building sweat equity (BRRR, flip), so will take a slightly low maintenance approach and buy relatively newer properties in B class neighborhoods and use property management for day-to-day operations.

Goal:

- To get to $10K/month net profits with real-estate (today's currency) in 15 years when we plan to retire. We like being aggressive in stock market investing but more conservative in real-estate given that we plan to use that for cash-flow eventually.


The options are:
We expect to have $200K/year in taxable savings the next 5 years (barring a job loss)

- Pump all savings to the stock market & keep the current rental properties as-is and payoff the properties over the next 15 years using cash-flow for snowballing. If I assume a 2% rate of rental increase for 15 years and 50% rule for expense, we will have $7.5K/month net-profits in 15 years.

- Split 50:50 between real-estate & stock market. In the next 5 years, we can buy one property per year with 25% down (~100K), and perform the same operation of using cash-flow for paying off properties next 15 years and we will have $15K/month net-profit which hits our goal adjusted for inflation (assumed at 3%). We also don't like to be too heavily indexed in real-estate in our total net-worth.

What would you do? Feedback appreciated.

Loading replies...