All Forum Posts by: Josiah Sia

 Perfect! I'm definitely going to be flexible when it comes to deals. If it's a hot year for buying and deals are popping up, I'll move and adjust my pay off schedule on the "dry" years. 

Thank you for the advice. That is definitely 100% something I'm planning to do. I've learned to be pretty flexible when making plans. But having a plan is better than no plan :)

 Thank you Cole for the advice. The $700 I calculated is after the overhead expenses. Rental is about $900-1200 in the areas I am looking at and trying to be conservative with cap ex and other expenses I just calculated $700/unit for rent.

Great advice on the webinars. I've attended the last 4 and they've been great! Went PRO on the second one!

I completely agree though... any hot deals that come out will be difficult to not strike on. But like they say, strike while the iron is hot. So there will have to be some adjusting and pivoting along the way for sure!

@Jacob Sampson I definitely will enjoy the grind. I've always loved it! (If it interests me. And this interests me!)

I wouldn't really be making enough to pay off $150,000 per year. But because I'm giving myself 1 year break in between, its almost like 2 years to pay off (counting the year I purchased).

Something like this. (#s are all just general assumptions. There is a lot more math in my excel document than this, but hopefully this helps showcase how I plan to pay them off)

Year 1: Have $35k in savings already, save an additional $48k. (We are living below our means and able to save more than 50% of our income thanks to paid off loans, low mortgage, etc.)

Total cash reserves: 83k

Year 2: +$48k from w-2 job. Buy a quad for $150k. Calculating 35% for 20% downpayment, closings costs, and any touch ups/renovations. I'm not planning to buy completely run down places. 

Total cash reserves: $78k

Year 3: (saving year) +$48k from w-2 job. +$4800 assuming $100 cashflow per unit. 

Total cash reserves: $131k

Year 4: (saving year) Pay off 1st quad. +$48k from w-2 job. +$33,600 assuming $700 cashflow per unit for quad 1 that's now fully paid off. Buy 2nd quad. Assume same #s as first. ($150,000, 20% down) +$4800 assuming $100 cashflow per unit.

Total cash reserves: $45k

Then just rinse and repeat steps 3 and 4 alternating from years I just buckle down and save and years that I pay off the previous quad + buy another. Sorry if I made it sound confusing saying I was going to pay them off in a single year. I'd have 1 year of savings in between for the first couple quads.

Math isn't perfect, but it's the general idea of the plan. Pivot where I need to and adjust.

@Erik W. I'm planning to mostly replace 50% of my income + my wifes full income. I plan to still work since I REALLY like my w-2 job. With that being said, that's why I really like this plan because it doesn't require a ton of time investment. I buy a quad every other year and work on paying it off. :)

I didn't even think about the insurance and all that. I should have learned from a mistake I made at my previous job hahah (didn't have any insurance, luckily my wife did and could put me on hers) Since I plan on keeping my current w-2 job I can work out insurance for my family in there. 

Thank you so much for all that extra insight! I'm going to adjust my "target" $#s now to be 150% instead of just an = match. I'll also account for the $10,000 saved per unit for cap ex or any emergencies. Is there a point where I should stop saying $10,000/unit? I'm assuming at a certain # of units you could always just hold and replenish the cap ex pool instead of continuing to put more $ into it.

Putting these in my notes and calculations NOW.

THANKS!!

@Scott Pearson thank you so much for the affirmation! Good luck to you and your deals! 

Thank you Jay! That makes a lot of sense and is definitely something I need to calculate out. I'll plan to go above the salary units # I had originally had to account for overhead and inflation. I didn't think of those and I'm glad you brought those up!

P.S. Your podcast was great! You even addressed my question here in the fire round of that episode saying "the quicker you get your buy and holds paid off, the better you are." It's like having a celebrity responding to me on my post! 

@Account Closed thank you for the feedback! That's my goal :) Trying to get into quadplexes as fast as possible, fully paying them off and scaling till financial freedom is achieved. Goal is hopefully my wife won't have to work anymore sometime in those 10 years.

Fortunately for me I love my job so I'll likely continue. I'm thinking that 1 year to purchase a MFH, then 1 year to fully pay it off sounds reasonable. That's if I can purchase decent deals in the $150-200k price range. But my thought is if it's just 1 deal everyone couple years, surely I can figure that out! 

Howdy! 

Looking into getting into REI and have been looking at different systems and vehicles to get me there. We don't have any huge goals of owning 1,000+ units or raking in millions a month. Our goal is just to replace our monthly income of roughly $10,000/month passively within the next 10 years. That's it! 

Looking into ways to do this conservatively and one of the methods that really stood out to me was buying a MFH (2-4 units), paying it off, then taking the full rent + savings from our FT jobs and snowballing the same process over and over until our goals are reached. 

Averaging the rents around $700/unit in our area, that would only take 15 units to be fully paid off to achieve $10,000/monthly passive income. We have a decent amount of income since we've reduced our mortgage, auto loans, and adjusted our budget to live significantly below our means. This is definitely achievable in 10 years if we buy 3 quadplexes and a triplex, or 8 duplexes, etc.

I know this isn't the normal investing kind of plan I see out there but this is how we could leverage REI to meet our specific goals to reach financial freedom.

I'd like to ask the seasoned veterans here if there is anything inherently wrong with this plan? Is there anything else I should know about before setting this as "the plan." I don't see this kind of plan talked about very often or at all. Most everyone is looking into BRRRR and other types of trade-up systems.

Just learned about this sub forum :-( looks like I missed this event, and I also love that restaurant! Used to go there all the time when I lived nearby!

Planning to have another event sometime?

 Maaaaan, those are definitely #goals. Hopefully working alongside some friends who are doing this too and my BP family, I can scale that up as well!