All Forum Posts by: Aaron Z.

Joe Splitrock Hey Joe, that is a lot of info you're requesting! Here's what I'm comfortable providing: Money saved for RE use: more than 100k less than 1M. Cashflow at retirement with no additional deals: 65k/yr Salary: >100k Living expenses estimated immediately after retirement = 90k, but could make do with less. I currently rent due to job that requires frequent moves. Will buy at some point but not immediately upon retirement. We are flexible on housing in the short term as a cost saving measure. Our eventual home be worth north of 500k, but I plan to do much of the work building that to save money - I'm an engineer and I love working with my hands and mastering new skills. Retirement goal: absolute time freedom. Be my own boss. Do RE investing full time for a few years. No having to move around for my job. My job is very mentally stressful, but not very physically stressing. I hope that's enough for you to work with. Although I am nowhere near wealthy, my 11 year old 4Runner (purchased with 100k miles on it) and I do like to practice stealth wealth so it is hard for me to provide exact details on what you are asking for.

...realistic number that I would pocket each month with properties in this price range? Any ideas on where I would find this type of property in Hampton Roads? If you find the right deal (<75k all-in) and can find and keep quality tenants (10% vacancy or less) and you managed the property yourself (something you should plan on when starting out) you could make $400/mo cashflow on a duplex. I don't have any experience with SFR's in this price range. I have a duplex that I am closing in a couple weeks and it's kind of my test case for a specific area. Purchase 42k, reno 35-40k, refi out about 80k and rent for 1400-1600 total per mo. I plan to post update on BP in 6 months on how it all worked out.

I am quitting my job in 18 months. To cover a comfortable lifestyle I need an additional 30k in yearly rental income. I have a good amount of money saved up to buy homes with cash and then refi them but very little extra time at the moment, however after I quit my day job in ~18 months I'll have lots of time, but no ability to get financing. Up until now, I've been planning to buy houses at ~70 LTV and rent them out for a pretty good cash flow. Going this route I would only need a small number to meet my goal but it would mean a lot of dead equity. I am also very familiar with route as I've done this multiple times before. An obvious alternative is to use the BRRR method. The benefit being that I get a much better return and very little of my money would be tied up in the properties. The downside is it would require a lot more time to find and buy and renovate these houses and cashflow per property would be smaller so I'd need maybe 3 times as many. I also have little to no experience using this method... Should I save the capitol and go the BRRR route and probably not meet the income needed 18 months from now? Or should I play it safe for now and take the BRRR after I can do this full time? I'd really appreciate hearing how you would handle this situation.

Jessenia Munoz Hi! There are some really great calculators and spreadsheets out there that will spell out everything you need to take into account. I would find and download a couple of those and then familiarize yourself with their contents. In the most basic approach you need to estimate what rent you can reasonably charge and then work backward from there to determine what you c an pay for that house and still make a profit each month. There are lots of different markets inside Hampton Roads and many different types of tenants you could cater to so you'll need to narrow that down during your research as well.

Irwin Haddox In short, people who need to move frequently or need to live in expensive cities or those who don't want to commute or those with families but travel a lot for work. Over the past 15 years I've charged my tenants anywhere from 1450 to 2250 for SFR's in Chesapeake and Norfolk Virginia. During that same time frame I've paid $1950/mo for a small 2 bedroom apartment from which I was a 10 min walk from: My work, the Pacific Ocean, a community college, and a small downtown area. Never dealing with traffic or other drivers was a real treat! The most expensive was paying over $3000/mo for a 1400sf house!

Patti Robertson Thanks Patty.

Patti Robertson Roberto Costa Do either of you own or manage anything near Douglas park in Truxtun? If not, do you have any past experience with that area at all? Parts of it are 100% duplexes.

Greg S. Hi Greg, thanks for your perspective and I realize this may seem unreal so I appreciate you humoring me. I'd love for someone to hand me 500 houses cash flowing for no money down, absolutely! Sign me up as well. But to go find them, negotiate them, etc would take a lot of time and effort and I just don't know if that is something I want to do or even could do in a reasonable period of time. Regarding the opportunity cost, you've got me there and that is part of my debate. Would I be happier with 6 houses and 75k/yr income or with 500 houses making 500k/yr? And how much time would I spend pursuing the one vs the other? Would it be worth it? Yes I wouldn't have 400k of capitol tied up with the 500 houses, but what if a 20% return on 400k is almost immediately available? Does that make a difference? Don't get me wrong 500k/yr sounds way better than 80k, I'm just trying to account for all the variables. Note: I close on a 40k duplex on Feb 1st and am trying the BRRR route on it...how that goes will probably sway my opinion.

I currently operate in an investing niche where I can buy SFR's and rent them at $12-15k net income per year. But each transaction requires that I keep between 50-80k tied up in each property. My question is whether this is a good place to put my money to work? My immediate alternative is to buy duplexes that cash flow about 3k per year but They require little to no money tied up in them (varies from money in my pocket after refi to 10k left in), using the BRRR method. Obviously the BRRR method is more sustainable since it requires less Capitol and the COC ROI is higher but there is a tradeoff on # of hassles & headaches with significantly more doors. Appreciation is not something I can count on in either case so that ain't being considered as a factor. Also both figures above are for a PM managing them. Part of me really likes the efficiency of max cash flow from a minimum number of properties. I'd really love to hear from anyone who's got a different perspective. I feel like I am missing something. Thanks!

Andrey Y. Travel isn't intrinsically expensive. Neither is living. But most Americans don't choose to live very inexpensive lifestyles. Also, living in a high cost of living area like Hawaii makes it comparatively cheap to travel to other locations like since your dollar goes much farther. For someone from Tucson or Topeka visiting Paris would be super expensive. Everything is relative. It's also hard for people working day jobs to fully comprehend what slow travel is really like and how it is so much cheaper than rushing out for a week at a time when your job allows you to.