All Forum Posts by: Atul Mohlajee

Actually my cash flow is exactly $120000 from  12 properties and 25 tenants, with 6 of the properties paid off (no mortgage) and annual gross rents at  $475000.  Everyone has their own philosophy/idea of good life as long as they are happy. Sometimes expenses are just too heavy capital expenses, vacancy, tenant needed repairs when they move out. My rentals are A/B class urban. I am 64, and my wife is 61. I could get Social security as well. I still work with about $180000 total income in current W2 job and previous job pension income. It is good to keep busy, as well as help kids who are in professional programs MD, MBA etc. Also, it makes it easier to pay off mortgages because I donot need cash flow for living expenses.

I thing it will work fine for you considering your age as long as you can keep your discipline and pay off properties. I only assume cash flow for paid off properties although other properties have cash flow on paper. All the best. Overall great achievement.

Everyone has their own philosophy/idea of good life as long as they are happy.  I have total 25 tenants (12 properties) with gross $475000 annual rents and I assume $10000 cash flow/month although 6 of the properties are mortgage free.  Sometimes expenses are just too heavy capital expenses, vacancy, tenant needed repairs when they move out.  My rentals are A/B class urban.  I am 64, and my wife is 61.  I could get Social security as well.  I still work with about $180000 total income in current W2 job and previous job pension income.  It is good to keep busy, as well as help kids who are in professional programs MD, MBA etc.  Also, it makes it easier to pay off loans because I donot need cash flow for living expenses.

I thing it will work fine for you considering your age as long as you can keep your discipline and pay off properties.  I only assume cash flow for paid off properties although other properties have cash flow on paper.  All the best. Overall great achievement.

I had a similar situation but tenant did not tell me that her husband is moving in with her after doing jail time.  The village police informed me.  I put a no tress passing sign at the property (police told me to do that), and told them to move out which they did quickly because they knew police was supporting me.  The village of Forest Park has a no crime ordinance and police was working with me on this.  I would get them out ASAP before any crime is commited on neighbors, family, etc.

I assume 15% of the rent for regular repairs and capital expenses (roof, furnace, windows etc.) and 5 % of the rent for vacancies. Total 20%. 
Utilities paid by me or lawn mowing and snow, realtor commission for renting, legal expenses etc.  are over and above these 20%.  Most likely I can pocket 50% of the rent for paid off property.  For a mortgaged property, at 3-4 % interest, a few hundred dollars a month.   For high interest mortgages, usually break even or negative.  

Cash flow is positive although small (between $200-$1200 depending on number of units in the property) on properties that I bought mainly 2011 thru 2017 because of low buying prices and rents have gone up well.   I have always used cash flow to pay off properties and lived on W2 income and still do.  Yes six paid off properties have good cash flow around 50% of rent.  Cash flow is after assuming 15% repair and capital expenses and 5% vacancy expenses.  Also subtract tax, insurance, utilities if any, lawn mowing, and snow shoveling, any other expenses.  For cash flow to live on, properties should be paid off and self managed.  I have realtor to find tenants and a maintenance man too.  I do property management only that saves 10% and can be done while managing a W2 job.  

I own 4 two/three flats bought between 2013 and 2020 in Forest Park, Illinois, at low interest rates and prices in 200000's  They cash flow nicely and prices have increased a lot.  But at current prices and interest rates, this will be very challenging unless you go to cheaper areas or nearby suburbs that are cheaper.  NW Chicago is very expensive as a rental.

I would wait 6 months. Then raise 75 or even 100 if below market by that much. 

Very true.  Immigrants look at opportunities differently when they see them. I am an immigrant who came in 1986 with $20 and have quite similar portfolio in real estate and other investments.  The only difference is that I had education and had good jobs.  I can understand their struggle with limited education and language skills and still achieving so much that majority of people 99% donot.  They had extra challenges of language, culture, and education which they overcame.  Everyone can be inspired by their journey.

I had same feelings while buying during 2008-2016 years and was always a little fearful/cautious.  Now I wish I had taken even more mortgages at those interest rates and home prices.  Key is to have reserves.  I reached reserves of 6 months of personal and rental expenses.  I could manage 6 months even if I lost my job and none of the 15-16 tenants at that time paid me rent for 6 months straight although it never happened.  Had some vacancies which is normal, some major capital expenses handled easily but nothing drastic happened.  Current cash flow is much higher as I paid off half of my properties with time.

Thanks Colleen.