All Forum Posts by: Lee Melvin

Yea I know it is important and one would need a hefty fund.

I just dont like the idea of calculating it in the every month expense fun for cash flow.

For some reason I do not like the thought incorporating the 50% rule when looking at cash flow etc.

Id rather just have a large enough emergency fund and deal with problems when they come up and not include that in your normal monthly numbers etc.

Assuming no property had any major foundational issues, how much money do you think would be good to keep in such a fund?

Also, excluding the repairs what % do you think would be good to deduct for expenses? 20-30%?

I am not even sure if I worded this right. Hopefully you guys get what I am talking about.

How many people here are getting 20% cash on cash returns?

10% seems kind of low imo.

I wont be limited to any one area. Will have the entire US to search out those deals / markets. Hopefully they will still exist to some degree when I am ready to invest.

How much are property taxes and insurance (generally, average etc) in places like MO, TX, GA, OH.

Then would 10% for vacancy and 5% for repairs be a safe estimate?

Would like to buy a house cash for 40-60K that can rent for 800-1,000 a month. Or maybe there is better returns with plex's... A lot of researching and planning to do.....

Robert. That is not bad. 3 years to 1.6K.

What type properties did you buy? How much capital did you invest to get that?

@Aaron

What type properties specifically are you talking about? (SFH, Plex, Purchase Price, Est. Rent etc)

Thanks guys.

John,

What would be your suggestions for getting the highest cash on cash return of say 15% or more?

Also, what type properties would you look at (ie purchase price / rent, SFH, Plex's etc) if trying to reach said goal of 1.5-2K a month in CF? Should I look to roll the equity and trade up?

I graduated University in 2009 and at the time my goal was to travel and see the world. After this winter 5 years later I will have accomplished my goal. Now my new goal is building cash flow of 1.5-2k from rental properties so I can quit my day job if I wanted and focus on my next goal in life.

I would like to be able to accomplish this in 5-6 years. Starting next August I will be moving to the Gulf where I can save 25K (conservative est) a year to use to invest with. I will most likely be an out of state / country investor so will be focusing on where the numbers and outlooks are the most promising for buy and hold. I will have roughly 1 month off in the Winter and 2 months off in the Summer to travel to the US to look for properties and do all or most of the preparation and ground work.

With that said, is my plan too ambitious? Any recommendations or strategies would be most appreciated.

I came across this blog post and really enjoyed it.

http://www.biggerpockets.com/renewsblog/2013/08/28/million-dollars-of-wealth/

Anyone know any others or links to some good ones? Love to see specific real world examples with numbers like that.