All Forum Posts by: Account Closed

@Joe Villeneuve 

You need equity growth/appreciation to cash out refi and reinvest.  

@Steve Olafson 

@Kalyb Coats 

I do agree with Steve, that multifamily is a good way to go if you're main goal is retirement.  That said, it is not for the inexperienced.  If you are driven, a quick learner, and are extremely motivated you can do well... 

But you can also go bankrupt fairly quickly as most of the doctors were doing, while their property managers embezzled the money coming from their multifamily properties in the 50+ multifamily deals in Dallas walked in 2009 and 2010.

With multifamily, you're simply dealing with bigger numbers...and the numbers can be positive or negative!

@Steve Olafson 

Can I ask where you bought these properties and in what years?

Locating investments in a market that presents the right mix of cash flow/equity growth potential for you to meet your goaks is key.  And goals differ, which is why our strategies differ.

@Steve Olafson 

We also should include a timing assumption. You likely bought at or near a bottom, correct?

@Joe Villeneuve  I never mentioned CA.  And properties in extremely high cash flow markers generally appreciate at much lower rates (ex Michigan vs CA).

thanks @Steve Olafson 

Yes, that's another way to do it, but you've likely taken considerably more risk.

@Kalyb Coats 

my comments above assume the following:

(1) all of your properties cash flow

(2) all of your properties appreciate

(3) you can locate a lender willing to provide terms where you can still cash flow after purchasing your 10th property

@Joe Villeneuve 

Retiring in 3 years with $100k is a pipe dream, unless you're planning to live on an income of less than $100k a year.  I'd estimate that it's more like 15 years, depending where you're investing and the cash flow and equity growth of your portfolio.

Assuming $100k purchase price and equity growth of $40k on each property every 5 years, in 15 years you'd have approximately 40 properties.  Though I'd never retire because I love this business, at that point I'd take a very long vacation.

@Kalyb Coats 

I'd buy 5 cash flowing properties...then once I've got $40K in equity in each, I'd cash out refi and buy 10 more.