All Forum Posts by: Victor Robinson

@Jodi Terrell For the concerns you mentioned, I think a good attorney experienced in syndications would be more helpful than a coach/mentor.

@Justin Kocian

That’s exactly how I got started.

Used HELOC for 20% down payment. Financed the remainder with commercial loan.

Made minimum payment on commercial loan. Dumped all other cash flow on HELOC. When I got the HELOC balance down low, I bought another property using the same model.

@Rahul Handa

The more cash you put down, the lower your p/i, and the higher your cash flow.

Put down 20% and you could cash flow 20-30% of rental income.

@Rahul Handa

As others have mentioned, a lot of variables here. Purchase price, down payment, rental rate, market, prop mgmt, etc.

For SFH in my market, I normally estimate 40% of rental income for goes to vacancy, repairs, insurance, and property tax (up that to 50% if you hire a property mgr). If you finance at 100%, another 40% goes to p/i.

So, you get 10-20% of rental income as cash flow depending on how you finance, your rent/purchase ratio, and self/hired mgmt.

I’m in MS where cost of living is quite low. I’m 37 with a 9 and 11 year old. And I like my w2 job. My number is $10k/mo cash flow from RE investments. I expect to hit that number in 3-4 years while still being significantly leveraged. From there, I’ll spend the next 3-4 years letting that $10k/mo pay off all debt, primary residence included. (Probably leaving w2 job somewhere during that time frame.)

Once debt is eliminated, that $10k/mo all of a sudden becomes $20k/mo. At that point, kids should be starting college (or whatever adult path they choose to take). And the wife and I will be in our late 40s, completely debt free, with $20k/mo for travel and fun.

My 11 yo son is always asking questions about real estate. I take him with me to closings, basic repairs, and showing of rentals. I’d love to be able to walk with him on this journey of RE investing.

@Jay Hinrichs Look at Jay with a shout out to Hattiesburg MS. My partner and I are buying in Hattiesburg. Started out in sfr. Picked up an old (but good cash flow) office building. This year, picked up some 4-plexes. Big returns on our 4-plexes so far, but also frustrated with tenant issues. Looking for a good pm now. Gonna keep buying c-class 4-plexes for now for the cash flow. Ultimately hope to sell out and move into larger b-class apt complex.

@Karina Torres What exactly are your goals?