All Forum Posts by: Matt J.

Hey Kenneth. I wish I was at about $450/unit but those 4 properties are made up of 2 SFH's, 1 triplex and 1 duplex, so closer to $270 a unit. However the SFH's do cashflow pretty close to $450 on average, so I think that's where I should put more of my focus. They are all leveraged with mortgages, and rents are around $1800/month on average across the 4 buildings. So I probably would be right around that $1500 a month range per building. I've thought about going the flip route to generate more income to buy more of these, I'm just concerned I'll be left holding the bag with how hot the market is and a lot of people claiming a recession is imminent. Maybe if I bought right though and had an exit strategy involving BRRRR I could mitigate that risk.

That is awesome to be sitting at $4500/month. $10,000 must seem a lot more attainable at that vantage point! Nice work!

Thanks for the advice Kenneth, appreciate it. 

Thanks Zachary. There are a lot of knocks against single family, but I agree there are a lot of benefits and wouldn't mind scaling up to 15-20 of those then maybe looking into multifamily. So many preach syndication, but it seems to me that space is so overheated right now, plus I don't love the idea of taking people's money into my own hands until I've actually done a larger mutli-family on my own, on a JV basis or something like that.

Thanks for the input Justin. @Nicholas U I get where you're coming from, but my goal is to replace my w2 income so I can have greater time flexibility to spend with my wife and kids before the kids graduate and leave home (they're 3 and 9 months right now). 

Thanks Tony. Not super passive, I really want to get to the point where I can replace most of my w2 income with this to have greater time flexibility to spend with my wife and kids, but not to the point where I want to kick my feet up and do nothing. So that strategy could work. I haven't seen a ton of 4-unit properties in Duluth but haven't looked into them much in other markets so that could be a nice way to go. Not opposed to section 8 either, I've had one section 8 tenant for 3 years now and she's been great. 

Thanks Tony!

That is a great way to look at it, thanks, Jim. The formula so far has been really not much of a formula at all so that's a good starting point. I've mostly found properties on the market in Duluth on which the numbers made sense to cashflow well, besides my most recent which was an off-market deal. I think I've found that single family homes in that market cashflow really well near the college campuses, so I could pivot to focusing on getting more properties like that (2 of my single families fall in that category and are my best performing properties). 

To scale, I need to build a process around generating off-market leads, establish relationships with more contractors, and be consistent with it. 

Thanks, Jim!

Thanks Huy, not really an option for me at this point or within my timeline.  

Thanks Mike! So it's actually 7 units, 2 single family houses, 1 duplex and 1 triplex. I'm cashflowing closer to $270 a month but definitely am setting aside 5% for vacancy, 7% for property mgmt (they're all professionally managed), and 10% total for cap ex/maintenance. That puts me closer to needing about 30 more units total. 

I'm sitting at about $20,000 in cash reserves so feel comfortable with that amount with what I have currently. I think it's definitely high time for me to start scaling up using other people's money and working harder to find fixers. 

My market is Duluth, MN. Great market for cashflow, not so great for appreciation/job growth. If you were me, would you stick with what works up there (2.5 hours from home, so already investing at a distance) or should I do some market research and pick a new market? 

Thanks again, Mike. 
 

@Brian Garrett as a syndicator, how do the numbers work out? Generally an acquisition fee and percentage of equity, but isn’t the end goal almost always to do value add and sell within 5 years? At that point, it almost seems more like a job than truly passive right?

@Darius Ogloza seems like a steep market with decreasing rents, am I wrong?

I’m at $1890/month passive income currently from 4 rental properties and want to scale to $10,000/month in the next 3 years. What is the most efficient or fastest route to get me there?