All Forum Posts by: Tim W.

Is your group paying cash or financing these deals? Im looking to start investing and a small apartment complex was my goal. Maybe joining a group would be better.

Thanks again guys...just did some calculating (bankrate.com actually did). Been talking with my dad who just retired and was looking to get me to invest in mutual funds or something along that lines with a 7% return or so.... so here are the numbers:

$300,000 invested over 15 years at 7% equals $827,709

$300,000 invested into 15 houses ($100k each, $20k down, 4.5% for 20 years) = $806PITI (here in DFW area of Texas). Say it rents for $1100/mo but we round down to $200 cashflow due to vancancy and what not. 

$200/house * 15houses * 12 months = $36000/yr income * 15 years = $540,000 with each house having a balance of $27k. So $100k house - $27k balance = $73k in equity * 15 houses = ~$1.1M + $540k income = $1.64M after 15 years... 

So roughly double the 7% investment... sounds like a no brainer? Hopefully pulling more per door and reinvesting into more properties to compound the earning on real estate. After the 5 more years, the income would be $15k a month as passive income. Just wished I started this earlier

Thank you so much for the insight. This really helps clear up the confusion in my mind. I was thinking people are refinancing the next year on everything. I can definitely see the bigger picture now and how to get there. Truly great words, I appreciate them

To everyone else who replied. Thank you so much for the the help. This is the motivation I needed to sell my property. I was really looking to hold onto it to build a dream home but after reading and reading, that dream home doesnt make that much sense and will be a huge liability that will just keep me in my current job.

@Amaan Davis  I understand that an appreciating property grows in value. Say you buy at $100k and now its worth $150k, people will refinance to pull $125k out of the property and get their initial investment + $25k to reinvest. I just dont understand how people are making good money now. Later is easy once all those mortgages are gone. When people refinance the mortgage, now they owe $125k they refinanced (which increases their monthly mortgage) when they previously owed $80k on that same mortgage. If they were making $200/door on the original $100k purchase price, $20k down, their mortgage was $405. Now they have a $125k debt on that house after refi and their payment is now $633 which is now negative cashflow. Make sense?

 Thanks Larry.. I understand the long play but I seem to hear about (on the pod casts) and read that people with say 50 units are doing this full time. 

So I have been reading and reading about REI and wanting to get into it. Read ABC of Real Estate Investing and now on Cashflow Quadrant, to be followed by BP's UGB. From all the podcasts and all the reading I have done here, I just dont see how people are truly cashing in as small to mid size REIs.

$100/door would put me at 30 units a month just to cover my bills. Im assuming appreciation and cashout can help with some but then you just owe more money and have higher NOI on that property. You can offset that with more properties generating $100-200 cashflow but it seems cyclical. Long term (once your investments are paid off) there is large money to be made but until then...what is everyone doing?

I have a lot (2.5acres) in the DFW area of TX that I bought foreclosed for $90k. I think I can sell it in the $300-350k range. I have had multiple letters wanting to buy but Im not sure if I should cash in now and start with landlording. Honestly would rather get into commercial properties ($1M or so) with NNN and not have to deal with small stuff. Not sure if that would happen or not.

So where does the "now Im making more and Im going to quit my full time job" money come from?