Anyone have any success stories replacing their cororate job with being a landlord or investing in real estate? Im located in Phoenix,AZ where the market isnt crazy expensive(comparitively). Ive bought 6 properties including our primary home below with cash flows after taking into account mortgage, taxes, insurance, repairs, capex, maintenace, hoa etc. Im 30 years old and I think I can pick up 2-3 properties a year for the next 5 years and retire at 20-25 properties at age 35 making 144-180K after taxes. Purchase Price/Monthly cash flow actuals Property 1: 293K/1K Property 2: 320K/0.8K Property 3: 128K/0.4K Property 4: 155K/0.8K Property 5: 230K/0.5K Property 6: 370K (primary) Total monthly cash flows 3.5K. Yearly 42K pretty much after taxes. These are actuals and will probably fluctuate between 35-42K with random repairs and capex. My average cash on cash return is 15-35% with down payments between 5-15 percent.
You are doing great. Congratulations. Which site do you use to rent out or to check rents ?
I don’t use any websites and I just interview people before I let them rent from me. I also require first and last months rent up front as well as a small deposit. I collect rent from Venmo
Thanks. If you don’t advertise how the potential renters find you ?
My current TC is 120 from my job. Plus the additional 40K. But I pretend that money doesn’t exist and use it to buy more properties
Damn, 6 properties? Is it difficult managing/maintaining all those while working full-time?
Do you manage the properties yourself or use some professional help ?
I self manage for now and I rent out by the room for most of them which is why my returns are so high. So I have 20+ tenants right now
What lender do you use? The rates I got are close to 5% for investment properties.
I got two properties so far in a LCOL city where I hire PM company to manage for us. I get sub-3% interest rate on my primary residence in Bay Area but close to 5% on those two investment SFHs. I plan to just pay off the loans this year.
Mountain America credit union. My rates vary from 3.5 to 4.375 for my primaries to 4.25 to 4.875 for my rentals
Really interested in this. Been wondering if worth getting into
why not index fonds? seems to be much pain with managing all this
Let’s create a WhatsApp group to discuss this in detail. DM me those who are interested. This could be seal breaker to get retired sooner
120 TC and 6 down payments ! How much are you putting down
TC?