All Forum Posts by: Maxwell Jacas

Thanks for the welcome @Dmitriy Fomichenko , hopefully you are one of many.

truly enjoying all the feedback, it's a mix of opinions but all very useful in changing and solidifying different aspects of my plan.

@Andrew Davis may be my new friend once I start my purchasing in Fl. Where I hope to truly flourish. Thanks for the support Andrew! !!

@David T. The student rentals will only be 3 properties in NY in a town we visit frequently. Afterwards, I will apply my strategy to Florida for residential renters, not necessarily for students.

Thanks again Mr.Villeneuve .

@Joe Villeneuve Specifics has always been my problem. I was hoping starting with a property, and getting my bumps and bruises was the way for me to know the process as well as the results.

HOLES!!!!, I knew I was wrong about about things.... Thanks @Garett H. 

Assumptions:

-Property prices: >$80k

Do you mean less than $80k? <-----Yes, sorry, mixed those up...Ive been looking at properties between $50k-$80K, maybe a $8k-12k downpayment.

What are you refinancing for? You don’t have equity to pull out of this property, unless you’re planning on the assumption of massive appreciation every year. You do have your 20% downpayment in the property, but that’s pretty much the minimum that every lender is going to require. <-----I am ignorant to the movement in home values. I was hoping that after remodel and a year of tenancy, the value would jump enough in a year to refinance to purchase another property.

To give you some rule of thumbs that are pretty standard matrices used for RE investors: ~50% of your monthly rent is usually estimated to be your operating costs. So in your scenario where you are obtaining $1500 rent ~$750 of that is going to be going taxes, principle, insurance, interest, maintenance, property management, etc.. <----Good to know, so would the $750 remaining be cashflow if the property was a duplex? My strategy is based on duplex properties, but now I know I would need more for additional fees. 

You’d need to have properties that rent for ~$2000 a month. Using the 1% rule you’re looking at ~$200k properties (does your target market even support this kind of return on this level housing?) <-----My target market actually is alot lower. My Duplexes (single level, side by side units) are usually 2bd for $550-600/mt market value and Im aiming for $750/mt, but with creative renovations, being in the construction field, luxury units can be created for these markets, cheaply. I hope to garner the rent im asking but I believe ground can be made.

Thanks for all your help.

Thanks @Judy Parker 

Goal: 

1. Retirement for my wife and myself by the end of 2020. (ie. $7000/monthly cash flow)

Plan: 

1. Purchase and Hold inexpensive duplex properties primarily in the florida area.

Breakdown: 

1. Year 1-
2. savings and credit building for  20% down payment, Purchase 1st property in college town, rent out each room for students.

*starting close to home to get my bearings*

1. Year 2- 
2. Save again for another down payment and refinance last property for an additional property, now giving me 3 properties in 2 years time. (all student rentals)
3. Year 3- 
4. Continue the same strategy from the previous years, this time Im purchasing single level duplexes in florida. At this point, Ive saved for another property and refinanced my 3 properties with the intention of purchasing 4 more properties in year 3, giving me a total of 7 properties.

Summation:

If I continue this pattern, I will have 31 properties in 5 years time. 

NOW, PUNCH HOLES IN MY STRATEGY!!!!

Assumptions:

-Property prices: >$80k

-Mortgages per property: $500/mo (max)

-Cashflow Goal: $1000/mo ($1500 rental income - mortgage) *not including reserves for maintenance and any other incidentals

-I will need to have 6 months of mortgage payments saved as well per property.

-Refinancing is done annually and for the appraised value of the property( only need downpayment)

-Refinancing can be done multiple times to the same property yearly. (at most 5 times)

-Refinancing wont be necessary once I have a steady cashflow which will make that aspect of the strategy moot.

Synopsis:

Im sure there is alot Im missing and not considering, this is why I need help.

I like to deal in absolutes, flat out numbers. Im not greedy or really into it for massive wealth, i just want to live the way I prefer. 

It is very ambitious and I have scenarios that are a little more conservative, but I live by the rule, "go big or go home."

I want to make $1000/month cashflow per property after all expenses. I sure there are ways to save money and tricks to do so, but Im here to reach my goal, and if someone is making a little more money from me and its on the up and up, i would be fine with it. I believe I need a great relationship with a bank/lender who sees my vision and no matter the interest rates and percentages, if they can provide the financial support, the end justifies the means.

Thank you in advance.

Max

@Account Closed 

 I have been on this site for a very short time, and already i have been given resources I believe is gonna be helpful...thank you all