All Forum Posts by: Adam Beckstetdt
Adam Beckstetdt has started 22 posts and replied 103 times.
Post: New to BP!
- Investor
- Fort Wayne, IN
- Posts 108
- Votes 24
Post: Fort Wayne Indiana Investor
- Investor
- Fort Wayne, IN
- Posts 108
- Votes 24
Post: Indiana whole sale question/re license
- Investor
- Fort Wayne, IN
- Posts 108
- Votes 24
I agree with Camilla. Thats always been my understanding.
Post: Closed on First House for 2016!
- Investor
- Fort Wayne, IN
- Posts 108
- Votes 24
Is that a commercial metal roof? If so great idea.
Post: Closed on First House for 2016!
- Investor
- Fort Wayne, IN
- Posts 108
- Votes 24
looks nice. Should have left the purple and yellow though ;)
Post: What do you shoot for on a per door rate of return?
- Investor
- Fort Wayne, IN
- Posts 108
- Votes 24
My goal entails more than MF homes. It includes commercial property as well that will be a stable investment that relates to my day to day. Knowing what is in the works for me to begin with I think this is very feasible however it will not be an easy journey.
Post: What do you shoot for on a per door rate of return?
- Investor
- Fort Wayne, IN
- Posts 108
- Votes 24
Originally posted by @Greg Carrier:
We do very similar value properties. Our average all in at the end of 2015 was in the 38K range, but our average rent was $700 per month. We calculate ROI unleveraged for all of our properties to keep from calculating different properties differently based on house to house financing. At the 50% rule that gets us to and 11% return although in reality we do significantly better than that as we manage our own, and have lower vacancy, and repairs than we use in our models (5% vacancy and 5% repairs).
All that said I agree with @Account Closedthat $100 is not enough. I know other people use that but here in Northern Indiana you can do better if you shop right and screen your tenants well.
One other thing, I started keeping rentals in the spring of 2014 and we are up to 16 now with three more to be ready in March. My goal at the beginning was 100 houses which in my mind simply calculates at 100 X 700 monthly rent X 50% rule = 35,000 a month in pretax income (again this is unleveraged) so for me to hit your 100K a month I would need 300 houses. Run at that goal though. Heck if I only get to 50 I will still be living large. Right now though every penny and then some goes in to new units.
Good Luck
While I know my goal is high I completely think its achievable. I understand that not many people on BP have this sort of success however I assume at that point why would someone be posting on forums in their spare time when they could be sitting on a beach somewhere.
Also as far as setting my goals high I am pretty sure this websites name is bigger pockets. I want bigger pockets. Get me a Costanza wallet already. ;)
Post: What do you shoot for on a per door rate of return?
- Investor
- Fort Wayne, IN
- Posts 108
- Votes 24
Yes they do. Although some of my cashflow will come from Real estate with low to no down allowing me a higher rate of return.
Post: What do you shoot for on a per door rate of return?
- Investor
- Fort Wayne, IN
- Posts 108
- Votes 24
Originally posted by @Gino Barbaro:
Hi Adam
the first question is What market are you going to start. In NY, the per door return is higher but so is the cost. I think 100 per door is average if your cost is around 30-40 thousand per unit. The per door calculation is often used in multis. In our market of TN, we are seeing costs of 40,000 per unit with returns of 100 per door (assuming you are financing with 15-20% down).
I would say my average unit would be 35ish. Lower if we are talking larger complexes and higher for smaller ones. I am in Indiana but will not limit myself to this area once I get big enough.
Post: What do you shoot for on a per door rate of return?
- Investor
- Fort Wayne, IN
- Posts 108
- Votes 24
Originally posted by @Joe Splitrock:
Originally posted by @Adam Beckstetdt:
Originally posted by @Joe Splitrock:
@Adam BeckstetdtI am curious why you are setting goals to have $100K per month income before even buying your first property? I guess nothing wrong with dreaming big, but having never owned a rental property, it seems you should get your feet wet instead of just dreaming. For example set a 12 month goal of getting two properties. Maybe two duplex so you have four doors and target $100 per door. Plan on the first one in the next 4 months and the other one before March 2017. If you are able to do better, that is great. My point is just to set short term achievable goals and get going.
I hope you don't take this the wrong way, but it just struck me as odd you are planning how you can make a million dollars a year and you have never even owned a property. You seem to know many of the terms, but really this business is all about action.
There are deals to be had everywhere. Good luck!
I agree with you Joe. I have shorter term goals and honestly I am shifting them based off of the info I have. I am not completely new in the real estate game but I have never personally owned rentals so this part is new to me. I do have 1,3, and 5 year goals as well but I threw out my longer goal to get an overall picture of the end game. I think depending on my end goal someone may suggest something different.
Your income goal is very large and is something only a fraction of real estate investors ever aspire to. There is only a handful of people on BiggerPockets operating at that level. I am not one of them, but I can imagine the commitment it must take to get to that level.
What is your one year goal?
My year end goal is 3k/month. This should be an easy achievement but it starts me off slow. I dont see myself getting really big until things start to steamroll probably about year 7-8.