First @Account Closed gotta get your head wrapped around a few clarifications and corrections on this thing called REI.
LT buy-n-holds are not for wealth creation, not at any form or function of scale.
Lot's of people like to bang the gong of cash-flow, but reality is cash-flow is a mechanism of sustainability of operations, not some big profit center. yes, some like to twist it to be, via various function of neglect. Which does not create profit, it's creates capital today via kicking-can and compounding future expense.
And appreciation of property is in large part capital preservation, it is your investment capital being inflation adjusted.
It is debt paydown via tenant payments that "creates" capital/wealth for yourself. So now when we CORRECTLY view it this way, we see it's a very VERY slow slog, over many MANY years.
Your not talking 40+ years, right.
So we have to focus over, as @Jay Hinrichs touched on which is ACTUAL wealth CREATION. And fact is it's actually a really simple paradigm that the best most reliable and efficient way to create, is via creation. So we are talking some function of developing, or redeveloping.
The 2 most reliable, known, sustainable actions for this wealth creation is; path of Progress (a favorite of mine as I have started in this over 30yrs ago now) and RE-development.
Detroit was both a great and a horrible example of re-development, but many minds go here first. often it's a much smaller market than an entire MSA. Generally it's something on neighborhood level, so this takes a lot of insight, research, timing and coordination.
I personally believe Path of Progress is the winner given how much easier the analysis and projections are of such, but maybe I am bias, I find it very easy to identify and project such but again could be reflection of time in it.
Now if you really want to amplify things it's about the age old adage of solving a problem. You do that, in path of progress, good chances you just caught lightening.
There is really so many different ways to do this it's just overwhelming to try and think on 1, or present just 1, and who's to say which best connects with you.
So how about this one. Targeting some "opportunity zones" where all markers of path of progress are present and your somewhere in phase I-II. Connect with open builder developments, make some deals, connect with some builder sot get other deals set and now develop from new for rental real estate, get them leased up earliest possible, pre or during build. Now with that, sell them to newer investor "wanna-B's" as turn-key AND with seller financing.
Now you can ideally monetize it's sell price with the added premiums of turn-key and seller financing, and as completed raising the sale price significantly creating sizable profit. Than, get down at 20% mark and charge added premium of say 15%, but point is that down covers your cash outlay 100%+.
now your monthly payments are based upon that higher sold price so even if conveyed at rate you have there is still a nice profit margin right there.
So at end of day your invested capital is only on the float, under 12mnths. And your gaining investments at net-0, profits rolling monthly which if net-0 into it that's called infinite returns.
This strategy, or mutations thereof, empower exponential portfolio growth. And that is how we can most readily get to $30k mnthly, because end of day it's not an issue of getting to $30k mnth it's an issue of how long it takes to grow such size of portfolio. So this is how we "hack" that growth rate.
And when hit certain pre-determined portfolio size, we flip strategy over to consolidation and start pouring profit's into the actual LT hold properties. These could be other SFR or maybe it's MFH, or mini storage, who knows it all depends on how you want that exit to look far as involvement etc..
