All Forum Posts by: Andrew O'Kane

Yeah, you bring up some great points @Mike Dymski. Are those estimates I put forth relatively accurate ($80k sfh, $550/month cash flow)? I see you've got dozens of rentals.. are you seeing much higher returns than 8.25% or do you have enough money just spread around where you're ok w/ a lower return in rentals because you're diversifying? 

@Michael Bishop much appreciated! Will be taking a look here tonight.. 

@Jordan Moorhead I've heard this method as well on a few Podcasts.. I like to be hands on, but maybe that isn't the right play.. will definitely have to do some more research as to what makes the most sense for ME (well, us technically).

@Richard Sherman @Isaak Brown all great info guys and appreciate the resources as well.. lot of digesting to do tonight! By the way, love the comment about lowing expenses typically is a habit that sticks w/ you long term.. I fully envision that being accurate w/ how my mind works. Clearly worked well for you Isaak, would not have believed $25k was possible in the Bay!

@Richard Sherman just saw the second reply.. multi units seem like a great path if you've got the capital. That being said are you typically buying in cash or leveraging? Again, another topic I've got a lot of research to do on to form my own opinion, as it seems to be highly debated. 

@Richard Sherman Went to school in NH as well, UNH specifically!

Lot of great points there and WOW.. what a spot you have there. So many questions but don't want to suck you dry of time/resources while I still have clearly a lot to learn about the basics. I'll take a look at the books on that list and start there. My goal would be to start investing in 2019.. but more importantly, once I feel comfortable in doing so.. long way to go!

@Richard Sherman Haha, no absolutely.. I need that hard love. I put out the $6k estimate to be conservative.. I definitely need to zero in on this and set a good, hard number. Especially as we have NO other debts to pay off.

We live in Boston.. I know we could be spending less but also don't want to sacrifice TOO much on where we live at this moment, especially if we can still manage to save $120-150k a year at the same time.. Not to mention we both work extremely hard and want some of that gratification back on a nice apartment to come home to. 

How did you first get your jump into the rental space? Any recommendations on literature or really ANYTHING else I can be doing? 

Some background info. My girlfriend and I are both 26/27. I make ~$250k / year in sales while she makes ~$100k / year as a product manager. I only see these incomes rising over time. We live in a rather expensive city, out rent is $2800 / month but aside from that, have no other major payments (no credit card, college or car loans). While we have yet to build a SOLID budget (I know this needs to be done), my assumption is we can comfortably live on $6k / month. 

I'm at the stage where I truly want my money to work for me and envision (and hope for) a passive income stream in the ~$200k / year range. I've been trying to educate myself as much as possible through reading and listening to podcasts in my free time. It seems as though we should have no issues saving $120k or so a year after maxing out our 401K?? Not sure where or how my calculations would be off.. but that just seems like A LOT of cash to be stuffing away each year at our age. 

Second part of this question is, where should I be searching for this passive income stream? My initial thought, (again, still have a lot of research to do) would be to purchase income properties and rent them out. From some case studies I've read it seems as though we can conservatively purchase a property for ~$80k / each (pay CASH) and then after ALL expenses, including a management company, have a positive cash flow of ~$500-600/month. From here I put together a quick excel sheet in which I looked at our current age of 26 and projected up to 40. I kept the rough assumptions of buying properties for $80k, cash flow of $500-600/month, input savings cash for new properties at $120k / year (in addition to re-investing the cash flow from income properties). From a high level, it seems as though we could end at roughly 36 properties with an income of ~$220k / year..... my question is what am I missing, are my assumptions way off? or is this a reasonable plan I should seriously pursue? If so, any recommendations on where to start and/or continue my research??