Newbie Strategy Advice

[Andy Vasquez]

I am completely new to Bigger Pockets. I came across Bigger Pockets after stumbling on "Rich Dad Poor Dad". I set a very ambitious goal of earning $250K by 4/16/2027 (~5 years from now). 

Any advice on how to tackle this goal? I bought my first house for $858K. It is valued at $990K and I owe $785. I plan on moving out and renting. 

Brandon Turner suggests to plan on getting ~$100 cash flow from each property - after operating expenses. $250K is $20,833 per month. I don't think I can accumulate 208 multi-family units in this time, if I acquire and flip properties. As such I think I should buy properties in areas that accumulate in value and then sell those properties transferring the profit into 1-3 large multi-family in years 3-5.

[Joshua Janus]

@Andy Vasquez  If cash flow is your goal in the shorter term, as in this 5 year plan, I would focus your time on areas that are lower price / sq ft that cash flow well. Places such as Cleveland, Ohio can produce a much greater monthly cash flow of 100 / unit and getting into 2-4 or 4+ unit multi family properties can get you closer to your goal! 

Here is some math: 

At 300 cash flow x 70 units, you are earning 21k/month which is your goal. If you buy in a market like Cleveland, you can find 4+ unit buildings that are in the 50-60k/unit range. At 50k/unit x 70 units, that is 3.5m in property value. 25% of that which is the standard down payment for investment properties is 875k. Does your current income source(s) provide you enough cash on the side to build up 875k in 5 years?