All Forum Posts by: Joe Faruko

You are missing the obvious, OPM (Other People's Money). The rents that you receive will help pay all the expenses, and net roughly $100-200 per door. Over time, the tenants are the one who pays down your mortgage. With a little luck, your property values goes up. Thus, you can increase equity through principal payments and appreciation.

Terry

Understood and you are completely right. However, I’m not questioning the expenses pay down with other people’s money, I’m questioning how to become wealthy through real estate. 100-200 monthly seems might risky for a 50k pay down.

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Hi BP Community,

I am 24 years old with 65k saved and really pushing to becoming financially free as soon as possible. Many members mention buying small multi families until they are financial free - but how long with that take with the usual $100-$200 per door model? When does investing in SMFH really become worth it?

Example of a typical duplex in my area:

Lets say I use 50k for 25% down on a 200k duplex in CT. Let's say after p&i and setting aside money for a pm + capex/maintenance I receive 200-300 total a month. So I initially put down 50k to only receive 200-300 a month? Though members suggest to BRRRR - you would still have to wait 6 months before banks allow you to refinance and lots can realistically go wrong if you go over budget or under your estimated appraisal.

What am i missing here. How is anyone reaching financial freedom with such a large down payment and low cash payouts? Keep in mind, I’m not even including the freak repairs and vacancy in my calculations - this is if you receive 200-400 ever single month.

Is this just an economies of scale thing and needing to acquire 10+ proprieties?

Thank you in advance

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All Forum Posts by: Joe Faruko

Joe Faruko has started 2 posts and replied 12 times.

Post: Where is the $$$ in Small Multi Family investing?

Post: Where is the $$$ in Small Multi Family investing?