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So I sold my personal property and I don’t have a rental property yet, but I’m already planning on how I’m going to be making $2,000 every month from real estate. SO in this video, I’ll share with you guys my first phase.
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First off: as you hear my numbers, a lot of people are going to say, its not possible where they are located, with their income and their current situation. But change that I cant to how can I; put your brain to work. Whatever man can do, man can do.
What I’m looking buy
Im looking to buy single-family homes or condos
That have 3 bed and 1 bath minimum
My budget is $60,000 but I want to get a discount of at least 10-20% ( so I want the property to be worth around $66k – $75k ) that way I have built in equity
I have some rules: but here are the main ones
Pay cash and if I borrow, borrow no more than 50%
Only buy another property once the other one is paid off
Get aleast 8-12% return or 5% if the property is an amazing location
How I plan to save all this Money
First I plan to save 40% of my income
Second I plan to withdraw 4% from stocks each year
Third I have some savings from the house I sold
All together this can help me purchase real estate for the first 2 years
How much Money would I make From the Property and what is my goal
First goal is to make $2,000 from real estae
But here is the break down
If the Property a Cost me 60k and it is worth 75k
First I have 75k in equity
If I can make 8% from rent that’s about $6,000 a year
After I minus Property taxes, insurance, vacancies and repairs lets say I keep 70%
So that’s $4,200 a year in cash flow or $350 per month
Its obvious now that to get to $2,000 per month
This is simple math and a lot of stuff can wrong, who knows
I’m going to need around 5-6 properties
Which will take me about 5-6 years
Phase 2:
Would be for me to consider trading in all those properties and getting an apartment building
But that’s another for another day
Ps. Remember properties appreciate with time, and rents also go up
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*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I’m an Accountant but I’m not your Accountant, always review information with your Accountant/CPA and your Financial Advisor. source
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