All Forum Posts by: Rick Santos

Tomorrow I will close on the first of many deals to start attaining my passive income goals. Going into this deal with a little anxiety, but feel it is a low risk deal with acceptable numbers. Special thanks to @michaelnoto for helping me through the process, he has served as a great mentor and learned a lot from him. 

Here are the details:

2 - Family New Britain - Average Area , semi industrial, somewhat quieter than other Average areas - 1978 sq ft

Purchase Price - 46,900

Rehab Budget - 35k - 5k Overage Factor - Was quoted 3 weeks, but aiming for 4-5 weeks

ARV - 120k

Cashout Refi 75% LTV - 90k -

Out of Pocket < 5k or hopefully 0!

Projected Rents - $775 each unit - Both 2BR 1 Bath Units

Approaching this one as a BRRR, looking to cash out refinance and get most if not all money back. Projecting to cash flow around $250-300/m after accounting for vacancies etc. I am aiming to do 3 of these every year to get to my passive income goals.

Plan is to hold this for 2 -5 years and then sell to trade up into a larger property. 

Hello @Kevin D. and welcome to bigger pockets! I would echo a lot of what @Ed Matsonsuggested regarding degrees and education, find out what you want to do, work for yourself or someone else or a combination of the two. I was in a similar position about 8 years ago on a 100% commission job, and there are many ways to get where you want to be. Here is how i did it:

Prioritize your goals and define a game plan. In your situation i would examine your budget and determine why you have had difficulty saving money, is it a matter of unavoidable circumstances or choice? Then see how much money you need for your objectives. If your triplex purchase is more important organize your down payment. I would aim for at least 5%, on a 150k triplex, this works out to be $7500. If you are having difficulty saving due to amount of income, get another source of income, and constantly look for higher paying work with your day job. I worked part time in restaurants and was able to bring in an extra $400/week or $1600/month(dont make this a long term plan). In one year you would have close to 20k. When you work more, it gives you less time to spend money as well. Househacking a triplex would likely reduce your living expenses and give you the ability to save more money and be able to take calculated risks.

What is most important is that you take the time to organize your objectives and write them down. The hardest part is getting organized and writing your plan, everything else falls into place afterwords. Be specific about your goals (not just a triplex, but where, how much, when? how am i going to get there?) I would start there and use a spreadsheet to track your progress, make a 1 year, 3 year, and 5 year set of goals. I have blown my goals away that i established that i thought were stretch goals back then. Best of luck!

Place looks great @Brian Pulaski, congrats on the flip, hard work but works out to be a nice supplement. 20hrs / week for 5 months puts you at 400yrs, 40k profit get you $100/hr, not a bad part time job!

Welcome to BP @Ryan Conor! Sounds like you are moving in the right direction and working hard! I would say to focus on what is most important for you now, either passive income (BRRR/househacking) or generating capital (flipping). I'm personally going with the BRRR strategy because it allows me to get nearly all of my initial cash outlay back quicker (3-6 months) while generating passive income at the same time. Then you can just keep repeating the strategy.

If you can do 3 BRRR triplexes / year, @ 150/door cashflow, gets you to 1350/m in passive cashflow per year. In 3 years, you would be clearing about 4k/month with virtually the same initial cash. The bonus is that you will typically carry about 20-30% equity in the properties as well, due to the value you created, giving you an exit strategy. Just work backwards to determine the amount of cash you need (personal savings or HML, or combination) to do a BRRR in your market. If it will take you a while to generate the captial, maybe start with flipping to jump start the cash you have to work with. ALWAYS look for deals, if you find a good one, it will be easy to find money in the event you do not have the capital for it.

Welcome to BP @Oz Pariser!

Welcome Carey, lot of great information and resources on the site.

Welcome Chad to BP, I'm a newer member myself. There are a tremendous amount of resources here and always good to see other members from CT.

Thanks everyone for the warm welcomes, I certainly appreciate it. Congrats @Michael Fundaro on your first deal, I'm sure it is a good feeling. Look forward to the next meet up @Account Closed, I narrowed down to those areas (maybe middletown as well) because they are fairly close to where I live, and seem to have best cash on cash returns. 

Rick

I grew up in Connecticut and lived in the Boston area for the past 6 years. Over the past year or two, I was very interested in real estate investing, however the Boston market did not seem to offer much in terms of cash flow potential. Naturally I looked elsewhere, and found there is a little more opportunity in CT in terms of cash flow. Recently I moved my family back to Connecticut to be closer to my family and am ready to start building my passive income and jump into real estate. I am a financial advisor by profession and don't plan on swinging a hammer or do much in terms of operation, i would rather hire someone that will probably do a better job so i can spend more time with my family.  What I'm looking for are connections/opportunities and recommendations for contractors/handymen and reputable property management company suggestions. I have started doing some research on my own, but feel this would be a good place to start and meet some local investors. My target areas to invest in are in New Britain, Bristol, and Manchester to start off. Also, any meetups on the horizon?