All Forum Posts by: John Prinz

I started buying rentals at 55. I put together a small partnership.   I have found cashflows hit about 9% unleveraged in Milwaukee to Kenosha area.  Not sect 8.   All-in purchase prices with fix up should be about 75k per house and rent should hit 1300/month with $700 net cashflow.  Using leverage will change it up.   If you go this direction, I believe $4000 month net can be done with 6 houses unleveraged or 12 houses with leverage.   

I have about 30 properties there. i have a presence from Lake county Il to MIlwuakee.  Macro trend there is one of the best around.  I focus on workforce single family houses.  There are some touph areas that I stay away from.  Mult family is hard to find.   I have a small team working the area from kenosha to Miwuakee.  you can reach out to me if you want to talk more

@Shiloh Lundahl

I have a similar model. I like what your doing. I run our model in phases

1)buy a foundation of properties 100ish for rental then buy 2 a month after

2)we convert them over for $130/mth for 3yr option premiums

3) hope for a 10% conversation per year with closing cost covered by buyer

We get same benefits of tax efficiency and “No Closing Costs”

Differences.

I decided to do my plan with a fund format with 10+ year investors looking for cash flow. Works for everyone. I would be concerned about your leverage ratio. We are only as good as the worst day!

If recession hits just keep tenets happy

I've been involved at several levels starting in 2014. Owning and mining coins.  I just sold 1/2 coin to pay for trip to base camp(Everest).  I don't know what directions coin price is going.  I remember the guy who bought a pizza for like 1000 coins 8 years ago.  hope I don't regret my bitcoin trip in 10 years:)

Hey Tyler,

I have 97 properties to far. 9 of them are not fully fixed up yet. Hope to be at 95% occupancy you aug 1. I’m averaging 1250 month per house.   Hope to bump that up to 1350 by aug next year. I’m starting to flip some houses again. Only the easy ones:)

I am in the process of building out "the optimum real estate model". The primary goal is to work modestly for next 20 years and have an increasing income to travel the world and enjoy watching my  kids  build their own lives.   

First of all, I am interested in building a semi-passive income from real estate.  After a couple years of flipping 30+ higher-end houses, the work began feeling like a stressful job to me.   I became worried about  being fully exposed in the market and became concerned about giving up all profits if the market quickly shifted.  So I decide to work on a well thought out long term plan.   Options that I envisioned in my plan included:

1) Fix and Flip

2) Be a wholesaler 

3) Become an Agent

4) Multifamily investing 

5) Syndication

6) Single family rental

I focused on a "Warren Buffet" approach and decided to buy "out of favor" single family houses, fix them for value creation,  and rent them out to working class tenants.  My  intent is to keep them long term.  Part of my observations included seeing my Dad's experience.  He purchased a 2 flat apartment 50 years ago for $13,000.  The property was 50 years old when he bought it.  Today he is still netting $600 a month  after 5 decades!   

My Goals for Real Estate retirement fund include:

-long term income for life

-Enough scale so I don't have to manage the properties myself

-Find people to work with that I enjoy and respect.

-Keep it simple. (purity of intent)

.  

I broke my plan out into 3 stages. 

Stage 1) set up a fund for myself and investors that have similar expectations.  -Ramp up deal flow, -build teams to do the work, learn about the property management , identify locations to buy into

Stage 2) Develop a foundation of 100 properties so that economies of scale kick in.  Lower my cost of capital so I have a competitive advantage.  -begin flipping a few houses with 25%+ margins.  use capital from banks at 5%.

Stage 3) maintain 100+ properties and replace some of the SFR with multi-unit apartments using all debt. Ultimate goal 100 SFR and 200 apartments. balance sheet goal 35% equity and 70% debt and a 12%+ long term cash low for partners paid out monthly.

There have been some pain points along the way.  I'm about 2 1/2 years into the plan.  

Hey Nicholi, I am planning on going to it.  I did not get ticket yet as I was going to see if I can get a DEAL somehow.  I was  planning on renting a car and driving properties and heading over toward Rincon.   How did you figure out what to get?   Is it a rehab? or rental?  

Im going to PR San Juan Nov 14 for the housing conference.  I considering opening an Opportunity Zone Fund.  Would like to develop connections with people doing real estate deals there.

Hey Collin thanks for sharing your story, Im from Omaha but live in Northern IL now. I have a similar story except I have focused on SFR. I'm up to 87 in 2 years. Are you going to keep the pedal on the metal for next couple years? Are you still finding good cashflow deals. Only difference I see with my practice is outsourcing more services. I use a billing and communication agency. Cuts out 80% of communication and collecting demands with tenants.

i'm interested in this area too.  let me know if there are any ideas out there