Hi, I got 9 properties, some overseas, some in the US. I wanted to ask how much % of the monthly of annual income you either put away or calculate as "loss" for maintenance. Also, what % or specific $ amount of positive cash flow you need from each property to consider it a good purchase? Please separate long term rentals from short (Airbnb/VRBO). Also state if condo or SF. I will start Long term US - SF: 20% maintenance, looking for $500 of cash flow positive from monthly rent Long term US - Condo: N/A I don't have any of those Short term US - SF: 25% maintenance, looking for $1700 of cash flow positive each month Short term US - Condo: 5% maintenance (a lot is part of HOA), looking for $1700 cash flow /month Long term Overseas - SF: 25% maintenance (different laws/code), looking for $500 cash flow/month Long term Overseas - Condo: 5% maintenance, looking for $250 cash flow positive /month Short terms Overseas - SF: N/A don't have any of those Short term Overseas - Condo: 10% maintenance, looking for $1350 cash flow positive /month Reason for short term higher $ is the need to sometime advertise + the overhead to rent (more work). Property management is 10% for long term, short term I am still learning, I paid per visit in the US, which got un-economical, overseas I am now on fixed cost with cleaning every week so I require minimum stay of 7 days.
You must be so experienced in this if u have 9 properties already. Or u just inherited it lullll. Good luck not losing all your assets!
Regarding your cash flow question. I'm changing my strategy. So far my goal has been to get close to 10% gross yield. Now I'm looking for 15-20% gross now potentially with less appreciation. Both of those numbers are assuming no loan.
Interesting, I find that I get better ROI (gross yield) with a loan, i.e. 20% down... Are you able to find the 15 - 20% gross? I only see those numbers outside of US and getting more difficult to find.
I haven't bought any yet. But the best cash on cash ROI can be found in mid-low end of the cheap markets in Midwest for example. Where people are unfortunately not able to buy and rent forever.
Don’t we all love rich people problems?
Do you find that you get a better return on your real estate investments than say a vanguard total stock market index fund? Seems like a big headache with all those properties and the index fund is basically set it and forget it.
Diversification, 60% in securities, 40% in real estate
What gets you a better return?
Long term SF 500$ cash flow / month = after all expenses? Where in the world is this? In my 3rd world home country rent barely reaches that.
I can only talk for long term US. I have 22 units spread across 5 cities. 20% seems fair. Sometimes it can be 15% if the property has undergone recent major repairs and is in a great location. For me i last ok for a minimum of 8% CoC ROI. The number may look low but I also target slightly better markets. Net ROI will still turn out to be about 25%. But right now it’s becoming challenging to get these numbers given where the market is.
In what timespan did you acquire 22?
Curious to know what 5 cities and your success story of how you achieved this? How many are paid-off?
“Overseas” properties are not relevant since 1: there is no such place (it has a name), 2: the tax laws and rental dynamics are unknown and thus can’t be compared. I’m <5% condos, <5% commercial, <10% SF & apartments 24 properties, 22 years.
How on earth you achieved this bro? Please share your success story. How many are paid-off?
Details here: https://us.teamblind.com/s/jNKKtXVa
I'm sure that the 70% of young software engineers that make up the Blind user base will give you wonderful financial and real estate advice that you should totally follow
Not looking to follow - looking to compare so I can make my own judgement
Lmao