All Forum Posts by: Stone Wang

Hi Isaac,

Thanks for your comments. I will prefer to use BRRRR strategy, but it is relative an advanced strategy for me at current moment, since I need to learn how to evaluation a property, how to make the deal, and how to flip house, and then how to refinance. Each step is not easy for me, however, for the benefit of use the $250,000 LOC over and over, this risk is worth to take, and I need to buy and read more books, and lay out a detailed plan before putting into action.

Thanks again,

Yuqi

Hi Jeff,

This is my first post on biggerpockets.com, and you are the first one to response. Thanks, and I would like to share more about my plan.

• Plan A:

- Pay off our house and rental property in 10 years, and with house price appreciation, the total property value will be around 1.5 million.

- Maximize our 401k contributions each year, and assuming 8% return each year, our 401k portfolio will grow to 1.6 million.

- Result = 3.1 million asset + 2500 monthly passive income

• Plan B = Plan A + Home Equity Investment

- Buy one Multi Family rental property in year 1 ($250,000), and pay off this rental property in 5 years.

- With more Home Equity available, I can buy 3 more rental properties in year 6.

- Pay off my existing Seattle rental property in year 10.

- With house price appreciation, I can buy additional 3 more properties in year 10.

- Total Income: Seattle property 2500 + CT rental properties 7*1100=7700 = 10200

- Result = 3.35 million Asset + 10,200 Monthly passive income

Plan C = Plan A + BRRRR:

- Buy one Multi Family house a year using BRRRR Strategy. ($250,000)

- Repeat this process 10 times in 10 years, then I could have 10 houses in 10 years.

- The advantage of this strategy is that I can use my $250,000 LOC over and over.

- The disadvantage of this strategy not able to find appropriate deal or not able to refinance.

P.S.: My wife will definitely agree with Plan A, may or may not agree with Plan B, definitely reject Plan C. Since we need to make investment together, thus her comments is very important.

In your opinion, which plan do you think I should select?

Hello everyone. 

I am a newbie here, and just listened Brandon's recent webinar "How to Evaluation and Offer Rental Estate Deals". I am happy to be part of this community, and would like to share my current financial situation and personal rental property goal. Can someone do an evaluation for me and see if my goal is realistic?

1) 3 people family, couple with a 10 year old son, currently live in CT. Half million asset in 401(K), own a house and a rental property.  Total house value of 1 million with half million mortgage.

2) I have 250,000 Home Equity Loan that I can borrow anytime from the bank to make real estate investment.

3) My family annual income is between 200k to 250k, and my goal is to buy 10 properties in CT, and make $10,000 monthly passive income in the next 10 years. 

4) Specifically, I would like to buy one multiFamily house at a year, and it will create a free $1000 cash flow each month. 

Based on my current financial situation, do you think the goal is realistic? If so, how? I am able to buy one or two more multifamily houses using bank loans or LOC, but not sure where to raise the capital to invest the other 8?

Thanks in advance for sharing your experience.

Thanks!!!!