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All Forum Posts by: Max Lala

Max Lala has started 2 posts and replied 3 times.

Post: Newbie real estate investor, what am I doing wrong?

Max LalaPosted
  • Los Angeles, CA
  • Posts 3
  • Votes 1

Why do you think dearborn is not good? What other areas would you recommend?

I'm 30 years old now and also have 10k/month passive income (can disappear any moment). I'll really be using the 60k/year income for emergencies in case something changes with my other passive income. Also, by the time these properties are paid off (in 30 year) I'll be 60 years old, so at that point i should have $140k/year passive income on real estate properties. 

Do you think I'm being too optimistic?

Post: Newbie real estate investor, what am I doing wrong?

Max LalaPosted
  • Los Angeles, CA
  • Posts 3
  • Votes 1

I recently purchased a rental investment property in Dearborn Michigan for $70k and rented it for $900/month.

If I had gotten a 30 years loan on this property with %20 down, it would give me $250/month cash flow. (after taxes, insurance, estimated maintenance and management fees).

I have about $450K cash. Now the question is if I repeated this same process with 20 rental properties, it would cost me on average $17k per property (%20 downpayment including closing costs) $350K. $250/month * 20 = $5000/month, $60K year. I'd keep the other $100K for emergencies. 

$60k/year is enough for me to retire and this would be a %17 return on my $350K investment. Is this a good idea? Is there something I'm not thinking about? If you think this is a good idea, should I continue buying in the same area, or diversify with other states?

Thank you

Post: Thoughts about Dear Born Heights, MI

Max LalaPosted
  • Los Angeles, CA
  • Posts 3
  • Votes 1

Hello all,

I'm very new to real estate investment. I'm thinking about buying rental properties in Dearborn Heights, MI and wondering what you all think about the area? What other places I should consider buying?

Thanks!