Real estate investing

VMware / Product lRQQ72
Sep 15, 2018 27 Comments

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.

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TOP 27 Comments
  • Apple Tim'sCuck
    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
    Sep 15, 2018 2
    • VMware / Product lRQQ72
      OP
      Not looking to follow - looking to compare so I can make my own judgement
      Sep 15, 2018
    • Intel PSOsGhost
      Lmao
      Sep 15, 2018
  • Oath Ladbt
    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.
    Sep 15, 2018 3
    • VMware / Product lRQQ72
      OP
      Diversification, 60% in securities, 40% in real estate
      Sep 15, 2018
    • Oath Ladbt
      What gets you a better return?
      Sep 15, 2018
    • VMware / Product lRQQ72
      OP
      Depends on the year, 2017 and 18 (unless something happens) stocks, 15 and 16 real estate, especially the short-term
      Sep 15, 2018
  • New / Eng wQqb83
    Donโ€™t we all love rich people problems?
    Sep 15, 2018 0
  • Qualcomm
    Kimjeller

    Qualcomm

    PRE
    Qualcomm, AMD
    Kimjellermore
    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.
    Sep 15, 2018 6
    • VMware / Product lRQQ72
      OP
      US. 1800 mortgage, 400 maintenance, 500 profit - > 2700 rent. May require more than 20% down...
      Sep 15, 2018
    • Apple Tim'sCuck
      What about taxes? That's more than 1k a month in a 1M$ place
      Sep 15, 2018
    • VMware / Product lRQQ72
      OP
      Taxes are paid monthly from the mortgage... It's easy to see that the mortgage at this level is about $370k. I could never figure out how to do this in SF...
      Sep 15, 2018
    • Wait I'm confused. SF is single family or San Francisco?
      Sep 16, 2018
    • VMware / Product lRQQ72
      OP
      Sorry, sfo
      Sep 16, 2018
  • 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.
    Sep 15, 2018 4
    • VMware / Product lRQQ72
      OP
      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.
      Sep 15, 2018
    • 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.
      Sep 15, 2018
    • International is complicated? Are you a citizen of anywhere else?
      Sep 15, 2018
    • VMware / Product lRQQ72
      OP
      Yes, makes it definitely easier
      Sep 15, 2018
  • New DuQvV7x
    โ€œOverseasโ€ 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 canโ€™t be compared.

    Iโ€™m <5% condos, <5% commercial, <10% SF & apartments

    24 properties, 22 years.
    Sep 16, 2018 2
  • Amazon AryaWFell
    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 itโ€™s becoming challenging to get these numbers given where the market is.
    Sep 15, 2018 2
    • In what timespan did you acquire 22?
      Sep 16, 2018
    • Amazon
      SWGMA

      Amazon

      PRE
      Microsoft
      SWGMAmore
      Curious to know what 5 cities and your success story of how you achieved this? How many are paid-off?
      Sep 17, 2018
  • New lulll
    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!
    Sep 15, 2018 0

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