All Forum Posts by: Adam Beckstetdt

 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.

 Unfortunately my market area is a sellers market right now so deals are slim right now. I do plan to buy my units right though.

As far as paying off the loan. I am not really sure I find that the best for me. The more income I make means the more deductions I have to find. While I want to create alot of passive income I would rather make a decent passive income with a loan and then when the loan is paid down I would take money out to reinvest in another property or two without the hefty taxation of a full loan free income.

I dont plan to live off of my passive income for some time so everything is going back into the business.

I am not an organized person by nature so I was looking into a phone app that tracked receipts. I am hoping someone uses them. Id prefer to not scan invoices so if I cant find a phone app that works I plan to just take pictures and save them on my computer. TIA

I'm pretty sure it is solely on a Fannie/Freddie loan.

 The bank I have talked to has no issue with the 10 loan since they keep thier loans in house however I believe they want a 20 year loan. There is great cost benefits to going 20 years instead of 30 and since I dont need the cash flow now it may be better for me to make a lower cashflow and save on interest. O decisions decisions. Time will tell.

Thanks Jacob. I'm still in debate on loan terms. Ultimate my goal is passive income so higher monthly amounts may work best however I will pay a ton more in interest. I had thought about the 15 year and then refinancing to gain more investing capital. I dont plan on taking money out to pay myself until later down the road so anything gained early on will just be reinvested.

Once my kids turn 10 I will start including them in the business and plan on starting them with their first house if they are interested when the time comes. I can really just kick myself time and time again for not following my parents advice 15+ years ago. I can only imagine where I would be now. 

Probably on a beach somewhere.

I agree and that is why I am assuming at some point I will more than likely have to 1031 to some large 100++ apartment complexes.

I'm sorry I should have expanded further. I guess in my head I am assuming a 10%+ CoC.

Your figure for cash flow is a lot less strict than I have been placing. I have been using 50% of income. Then subtracting my loan payment to determine cashflow projections. The 50% is intended to allow for my costs and vacancies.

I have been weighing to figure either 15 or 20 year loans but have not decided.

I guess ultimate I may be putting the cart before the horse but at some point in the coming years I will run out of capital to purchase more properties and I am trying to plan for my biggest bang for my buck.

Example scenario on Duplex using your figures 

70,000 purchase

14,000 down payment

1,000 Monthly rent

360 Vac/Mant

$442/month mortgage - 15yr@5%

140 CoC at 12% ($1680 year)

An additional $58 left over. Which is actually about a 17% return total. Is this how you figure your cashflow?

Here is how I am doing preliminary amounts

70,000 purchase

14,000 down payment

1,000 monthly rent

500 vacancies/other expenses

442 mortgage

58 CoC which is about 5%

Obviously this is just an example and not a real deal but just using the numbers as examples. Id prefer 20%+ CoC but I am trying to plan for the real world.

I see what you are saying. I buy the house outright or fully finance it. I guess I am assuming a 20% down. Obviously deals will be out to pay cash and to land contract but I want to use this as a basis.

$100k/month I say why not. While I have a very nice lifestyle now it is now way 100k/month. I place that goal based off of knowing I can achieve it and knowing what that will allow me and my family in the future.

Ultimately I want to give my kids a great head start like my parents did. Getting them involved in the process and the thoughts behind REI along the way.

I know I want to focus on multi family buy and hold but I have not made a purchase yet. I plan to purchase a few this year to get my feet wet and find out a good cycle of dealing with tenants. I plan to do my property managing for the first few until I get a good feel and then go to a property manager once I feel I am too big to do myself.

My ultimate goal is 100k/month cash flow. I was initially thinking that would mean 1000 doors at $100 each but I am wondering what everyone shoots for. Maybe I am low or high in my goal. I would obviously prefer to be low in that amount. I have been verbalizing and describing my goal based off of doors but I am thinking that is wrong and maybe sends off the wrong message. 

Example: If I could do a commercial property and made 3k/month off of one door this completely skews my numbers.

So I guess my questions are on MF homes like duplex to 6 plex what are people getting realistically per door and also on apartment complexes. Does that amount change. Ultimately I feel I will need to get into 100++ units in the future to achieve my goal but one step at a time.