All Forum Posts by: Randal Remon

Just wanted to send another update since I’ve sort of went awol. Hope everyone has had a great Thanksgiving by the way! I was in a tight situation during the summer trying to reach 4K, but really worked my butt off and actually made over 6K. During that time part of my reason going off the map was meeting two people (one that wanted my cell phone plan and one that wanted my phone). The result of these ordeals resulted in a $1250 profit (had to be without a phone for a little while, but was no longer under contract and I was able to upgrade to a better unlocked phone). As for saving, my net worth rose another 10k since the last post, but I feel there is much room for improvement. The other situation that kept me off the radar for a while was being involved in a serious car accident. Car was totaled, and it’s been very stressful not being able to work, being in pain, and dealing with this, but I have a question for anyone who can answer: The party at fault insurance is going to pay me for my vehicle. Would it be wise to put a percentage down on a same priced vehicle and finance, or save my credit inquiry for possibly a deal in real estate? My score I saw went down about a month or two ago (not sure why, but now it’s back to 779). Just didn’t want to take inquiries with a car loan, then another ding with home loan (unless I wait another 6 months I’m assuming)? Thanks for anyone that can clarify on things and hope everyone is doing great!

Originally posted by @Caleb Heimsoth:

@Randal Remon read some books and post about 1000 times on BP and then you’ll have a wonderful understanding of how this all works basically. 

I read a few by ken mckelroy, which was mainly about apartment investing, but none the less, I learned about cash flow and ideal of owning a property. 

What are some good books as far as house hacking/multi family units?

Originally posted by @Caleb Heimsoth:

@Randal Remon in the absolute simplest terms to achieve your cash flow goals you will need minimum 200-300k.  25k probably gets you one nice property if you’re investing in a cheap market 

I mean 25k as a down paymennt (which I assume is what you meant)? 

My only concern with real estate, is putting money down on something and carrying a large debt. For example, I put $25k down on a $250k property, well I would owe the $225k for the next years, but my intent is for investments and possibly a place to lay my head if I can get a multi family property. 

So the goal would be to pay off the property asap, or hope it builds enough equity so if you have to sell the property, you don't end upside down? 

Sorry just trying to have a detailed understanding if I just dived right in. 

Thanks for all advice everyone!

@ivan 

@Ivan Barrattundefined I kind of understand. So you are saying I need properties that are cash flowing $36k a year for that to happen?

Would I have to have $300k in cash ready to invest or there are other ways?

Let's assume I could invest $7500-$25,000. That wouldn't get me very far?

Originally posted by @Michael Le:

If you're looking at residential (1-4 units) then your weak income could be a hindrance. Also, you mention you've saved up enough for a down payment but then later mention $5-10k. That to me is not enough for a down payment so maybe we should level set and get on the same page. If you have a weak income and your idea of a down payment is only $5-10k then maybe wanting to make nearly your entire yearly income passively after just 12 months of investing is not a realistic goal. As someone else said, that doesn't mean you should not start working towards this goal. But you need to get realistic about your goals.

Thanks for your insight @Michael Le , where do you suggest I should be at to be able to hit those goals? 15-20k down payment, and what about income? 

Just wanted to know a realistic approach with things. Thanks.

Update. Managed to attack a little over $1100/$4000 so far. Still no luck in the job search, but have been networking, and chatting with some BP members. Really appreciate those who have reached out, means a lot!

Originally posted by @Shayan Malayeri:

That depends on a lot of things. As others mentioned 2 main variables are money and TIME! it's obvious that more money makes more money! but think about your time as well! to get $2500 a month you need 10-25 GOOD deals not just any deal! assuming you make no mistakes and all of your investments return strong profits. If you have time to self manage that helps a lot but remember managing that many doors with not much experience is a full time job. Remember that building a rental portfolio usually follows an exponential trend (snowball effect) and you have to think about how much you can leverage your time and money (without overstretching) to maximize that effect. Let's say instead of buying a turnkey with 20% down (no forced appreciation) and managing yourself netting $250 a month per door, you buy off market add equity and outsource management but only cashflow $100 a month. The latter gives you a higher equity % (giving so much flexibility) and takes much less time in the long run. It's true that your cashflow per door is less but you leveraged your money and time making future deals much much easier. This way, you may not hit your goal in the next 12-15 months but your 24-36 months outlook looks much better.

 Thanks for the insight @Shayan Malayeri, really put things into perspective. I think my first goal now would be to find a multi-family unit, preferably a four plex. The reason why, I would at least have a place of my own, and it doesnt hurt to have a place where it cashflows as well. Would that be possible based on my current scenario around the texas area, or should I be looking towards $300k+ properties, etc. I also read somewhere that its better to find a mult-family in a decent/good neighborhood as there may be issues getting the right priced plex, but in a bad neighborhood?

@josh and other BP members, would the average of $250 per unit apply as well for multi family duplexes? My biggest worry is biting more than I can chew, where a bad market or something happens, and I'm screwed.

Thanks for the advice @josh and 

@Thomas S.undefined

10 units hun? So to break that down, that would be: 

- 1x apartment complex with 10 units

- 10x SFH

- 5x duplexes or 2x fourplexes and a duplex

An 10 unit apartment would run 500-million plus right? And 10 sfh around $100k would be a million?

Let's assume I could put $5000-10,000 down for a multi family unit.  About how much could that get me, assuming some basic averages?

Thanks for both of your insights!

Hello BP friends,

I've been contemplating on one of my goals, and wondering if it's possible to accomplish in 12-15 months? My goal is to have $2,000-3000 (ex. $2,500) of passive income per month from my investments.

Wondering from someone starting out and really dedicated to put in the effort and work would it be possible?  A few things about me: I'm near the Houston area, have a credit score near 800, really have been studying real estate, from multi-families, to creating llc's, understanding cashing, etc, but my income is probably one of my weakess areas, even though i've saved enough for a downpayment and have a constant history of work. 

I'm thinking for this to even work, I'd have to go with commercial/multi-family units, as SFH can take some time, and I'd probably want to find property in a good neighborhood?

Just wanted to hear your honest thoughts and suggestion, wheter it's "possible", or I should "steer away". Thanks.