Want to build Real Estate Portfolio; Where to Start

[Gash Nag]

Couple of my friends and I are looking to start investing in multi-family apartments. All of us are with regular day time jobs and have less time to manage.
Scenario I envision is: Pool up some money and buy few properties  and Identify property managers to manage them. My friends and I will be retiring in next 15 years and so our plan is to own atleast 50 units by then so that we can make approximately 25K  per month. 

How do I start? I am trying to find out how do we even start? First identify a team of good RE agent; We need RE agent that can help get deals; But question is: Which markets? We are open to have in SO California preferably, but willing anywhere ; So how do I get RE agents in different markets?

Then, Some of them in team want to get lawyers opinions on any liability issues that may come up from renters. We will also need a financial company to provide us loan. 

I am sure similar questions may have been asked umpteen times but could locate the thread. Please point me to any resources.

[Justin R.]

Gash Nag Sounds like you have a lot to learn. That's ok - everyone starts somewhere - but don't fall in love with any strategy details too soon.

Some napkin sketch numbers for you:

You said you'd prefer apartments in So Cal and you want $25k net per month. I assume you mean $25k free cash flow. Ok. I assume you plan to leverage, and figure about $250/door/m. That would be 100 doors. Assuming you're paying $150k per door, that's $15M in property value. Leveraged at a typical 30%, that means you've got capital committed around $3M.

*IF* you can execute on that, you'd be at about 10% cash on cash and 18% total return on capital in year 1 ($20500/m in principal reduction on a 5% 25am loan), ignoring appreciation.

Those are solid numbers, and there's nothing easy about building a portfolio like this. And every additional person likely complicates it 2x.

If I was in the shoes I think you're wearing, I think I'd be looking more at either 1 or 2 bigger properties, commercial buildings, or just loaning money. When you get to large residential (20+ unit bldgs), you're swimming with sharks and more likely to be the chum.