Last Updated on March 29, 2023 by Mark Ferguson
I am a big believer in making big goals and one of my goals is to purchase 100 rental properties by 2023. I have been a real estate agent and investor for more than 15 years, and I love the income my rental properties provide. Buying 100 rental properties will allow me to retire with more than enough money to reach my current dreams and goals. I do not want to buy 100 properties quickly without concern for the returns or risk. It takes a lot of money, time, and effort to buy 100 properties in the right way. I only buy houses that are well below market value and have great cash flow.
I first wrote this article in 2013, but have tried to update it frequently. I now have 20 rentals that make me over $10,000 a month after expenses. I am way behind on my goal, but many things happened that I could not have predicted like our housing market going crazy. I have bought commercial properties in the last few years instead of residential because they have been better money makers in my market.
Why I made a more challenging goal
In 2010, my original goal was to buy 30 rental properties in ten years. I based that goal on what I thought I could realistically achieve when I started buying rentals. A couple of years ago, I realized my goal was too easy because I knew I could buy 30 houses in ten years. I had given myself no room for improvement in my investing strategies or real estate business! At the start of 2013, I reworked all my goals including my rental property purchase schedule. My new goal was to buy 100 rental properties by January 2023 because it challenged me and would make me work hard. I had no idea when I first made this goal how I could buy 100 rental properties, but that is why we make big goals; to challenge us to do more and to change the way we do things.
Why real estate?
I want to buy 100 rental properties because of the income and freedom that 100 houses will give me. I make over 15 percent cash on cash returns on my rentals because I purchase them below market value with great rent to value ratios. If I can buy 100 rental properties with the current cash flow requirements I have, I will make a lot of money. According to my calculations, I will be making over $900,000 a year in cash flow, have at least 60 houses paid off, and have over 11 million in equity in my rental properties. Those figures are not adjusted for inflation and assume no appreciation or rent increases. That kind of income should allow me to afford whatever my family and I want and allow us to do whatever we like. We only live once and I want to get everything that I can out of life.
The first part of this article discusses the philosophy behind buying 100 rental properties, why it is important to have big goals, and why it is important to think big. The second half of the article discusses the numbers and a detailed purchase schedule.
Is it possible to purchase 100 rental properties?
To be completely honest, I do not know how I am going to buy 100 rental properties by January 2023. I do not make nearly enough money to buy 9 or 10 houses a year. I have barely been able to buy three houses a year. I bought my first rental property in December 2010, and I started my rental property purchase goal on that day. I should have had three by December 2011, six by December 2012, and nine by December 2013. I started out very slow buying only one rental in my first year. I have picked up speed and as of March 2016, I own 16 rentals, still behind where I had hoped to be. That does not mean I will not reach my goal. The reason I have not purchased as many rentals lately is they are much harder to find in our market. Our prices have increased significantly making it harder to cash flow. I have been buying many more fix and flips since I cannot find rentals.
Why do I think I can purchase 100 rental properties by January 2023 if I am so far away? After reading and listening to books on how to become wealthy I started reworking my life goals. A couple of ideas are repeated in books and audio tapes beginning with Think and Grow Rich by Napoleon Hill. Think and Grow Rich was published in the early 20th century after Napoleon Hill followed Andrew Carnegie for decades. Carnegie was one of the richest men in the history of the world and wanted someone to study rich people in the world and write a book about how and why they became rich. Because Carnegie was one of the richest people in the world, he was able to grant Hill access to most of the world’s wealthiest people. Think and Grow Rich is now known as one of the first self-help books, and many of its basic ideas are still taught today by the world’s most famous life coaches and teachers.
How will my attitude affect my success?
Being positive is a theme that is repeated in every self-help book and audio recording I have ever listened too. I am a strong believer that our attitude has a huge influence on our success in life. The books range from slightly crazy to extremely scientific reasons for how being positive can greatly affect the success we have in our lives. You may have heard of the law of attraction, which states that the universe will return to us whatever we put out. If we are positive and happy, we will get positive and happy things back. If we are negative and sad, negative and sad things will come our way. I am a very logical and scientific person and was not sold on this idea right away. I had to know why this would happen. How could being positive magically bring positive things into our lives?
I started doing research on the brain and on how the law of attraction theory worked. I found out that it is not all magic, there are scientific reasons why the law of attraction works. It is based on the subconscious part of our brain and on how it operates our bodies. We know that our conscious mind is only a fraction of what our brain is responsible for. Our subconscious mind is constantly working to keep us alive by telling our heart, lungs, muscles and the rest of our bodies what to do. Most of our movements and actions are performed by our subconscious, not our conscious mind. We do not have to think about walking, talking, driving, writing, or even most of our daily tasks. By doing those things repeatedly, we have programmed our minds on how to do them.
Tying this back into the positive thinking idea, if we are always thinking positively, our subconscious will think positively, too. If our subconscious thinks we are happy all the time, it will do what it can to make us happy. Why do we care what our subconscious thinks? It is much smarter than our conscious mind. The subconscious is responsible for handling millions of tasks at once, while our conscious mind can only handle a handful of ideas at once. If we let our subconscious know what we want it will help guide our lives and help us to get what we want. Whether it is love, happiness, money, or material items our subconscious has much more power than we think. The theory also states that you must think about what you want, not what you do not want because our subconscious cannot tell the difference. If you are constantly thinking about not having money, then your subconscious will do its best to make that come true as well. If you are constantly thinking of not getting sick, our subconscious will do its best to get you sick. Think of being healthy, think of being rich, and think of the good things, not the negatives.
Why such a big goal?
Almost every self-help book will tell you goals are extremely important. Without goals, we have no direction, no path, and no idea of what we really want in life. There are varying ideas of how our goals should be constructed. Some say we just need broad wide-open goals such as being as happy as possible all the time to make whatever is best for you to come to you. Others say to be as specific and detailed as possible with your goals, break your goals into smaller goals, and then have a period for when those goals will be accomplished. Eventually, you will have a detailed blueprint for how you will get to where you need to go.
Some people say you need realistic goals and others say you need outrageous goals. As you have probably guessed, I like outrageous goals! The reason I like outrageous goals is that they are challenging! If I know that I can reach a goal and if I know exactly how to reach it, where is the motivation for me to push myself? I want goals that make me think and reach for new ideas and systems. I have no idea what opportunities or challenges will face me in the future, so why should I limit my future goals to what I can do now? I may have a huge increase in income or find a new system that allows me to buy houses cheaper. I have such a lofty goal because I have no idea what could happen.
Who will I need help from?
Many of the self-help books also talk about how we all need friends, co-workers, or acquaintances to help us reach our potential. Some use the term mastermind to describe groups of like-minded people who meet to help each other succeed by offering advice and motivation. The idea is that the more people to brainstorm ideas, questions, problems, etc. the better the chance a great idea or solution to a problem will come about. I do not have a mastermind group (this has since changed), but I have recruited my best friend to work with me and learn the real estate business. He was a top-level manager in the corporate world and left his six-figure salary behind to learn real estate from me. I benefit by having a new mind to bounce ideas off and have more help in the office. He benefits by getting out of the corporate grind and learning how to be truly wealthy. He also has a flexible schedule and he is not stuck behind a desk all day.
Why focus is so important
The self-help teachers also say how important it is to focus on one task or goal. All the greats had something in their mind that they really wanted. They did not let anything stop them until they got what they wanted or died trying. I have always thought of myself as being able to multitask, a jack-of-all-trades type of person. So far, it had worked out well, but I know I can do better. I know there are things I can improve in my business to make it run better and make more money. I have always thought that I knew everything about finding good deals in real estate. After starting this blog, I have realized that there is a whole world I have been missing in direct marketing to off-market properties. Instead of trying to manage five different sources of income myself, I need to delegate less important tasks to my staff and focus on the real moneymakers. If I can focus intently on a couple different areas of my work instead of just skimming over 50, I know I can improve my numbers significantly.
Why visualizing the goal being achieved is important
Many great athletes will tell you how important visualization is to succeed in sports. Great golfers visualize exactly how their shot will look before they hit it. Basketball players repeatedly visualize hitting the game-winning shot. The wealth teachers are all huge supporters of visualization. They say visualization will give your subconscious a clear picture of what you want and then your subconscious will do its best to make it happen. If you want to change your life, start visualizing how it should be every day. Better yet, go see, touch, and smell the things you want. Test-drive the car you always wanted, look at your dream home, or immerse yourself with the things you want and your subconscious will get to work. I wrote a ten-year dream story on exactly how I wanted my life to be. I described a beautiful house and in three months, I bought that house. I was not even planning to move and in no way thought I could afford a house like the one I have now, but it became a reality.
Using all I have learned to reach my goals
Based on the ideas I have just discussed, I think I have a good chance of reaching 100 rental properties. I still do not know exactly how it will happen, but I know it will or I will find a better and more challenging goal. I have to train my subconscious to help me reach my goal. I have to be positive all the time. I have to think about my goals constantly and break it down into manageable pieces. I must have help and I have to focus more intently on my important goals. I also have to visualize myself already achieving my goals and having everything I want. Even if not all of this makes me rich, worst-case scenario, I am a positive, determined, focused person who knows exactly what he wants.
Breaking down big goals makes them more realistic
I have broken down other goals in my life, but I have yet to break down a goal this big! I am going to work through the goal while writing the blog and see where I end up in 9.5 years. I wanted to write this article to help convince myself that it is possible to buy 100 properties. The first part of this article was all about my mindset. Now, let us get down to the numbers. Here is a year-by-year breakdown of how I plan to purchase 100 rental properties.
With my current income, I can purchase three rental properties a year and I have purchased that many in the last three years. I should be able to do a cash-out refinance on at least one rental property in 2014 and get enough money to buy another property. I am also counting on my new attitude and work ideas to create enough extra income to purchase one more rental property. I also just acquired a HELOC on my personal residence for $60,000. I think that will allow me to purchase one more rental. New goal for 2014 is to purchase six long-term rentals.
I will have 15 houses with about $9,400 in monthly cash flow. That is $112,800 a year all going toward paying off mortgages on my properties. I will have paid off one house at the beginning of 2014 and will pay off one and a half more in 2014.
In 2015, with income and savings, I should be able to purchase four properties. I should be able to do another cash-out refinance and buy another rental property as well. I also believe my continuous improvements will allow more increases in income, through either listing or flipping houses. The increased income will allow me to add another rental and HELOC another as well. I am hoping the addition of my friend beginning to work with me will bring in more income from his real estate activities, which will allow another purchase. My goal for 2015 is to purchase nine rentals.
I will have 24 houses with about $15,200 in monthly cash flow. That is $182,400 a year all going toward paying off mortgages. I will pay off the other half of one property and two more rentals in year two and will have four properties paid off.
I believe I will increase my income and savings enough to be able to buy five rentals. I will have 24 rentals and I should be able to refinance at least two of those properties. That will allow two more purchases and the HELOC should add the flexibility to add another rental. I am still planning to add to my income every year with increased business. This year I see a big jump in income with my friend being around for his third year and our new marketing and listing techniques taking off. I see three more rental properties being purchased from new income. My goal for 2016 is to purchase 11 rentals.
I will have 35 houses with about with about $22,200 in monthly cash flow. That is $266,400 a year all going to pay off mortgages. I will pay off four and a half more properties for a total of eight and a half properties paid off.
From my current income, I will be able to buy eight rental properties. I will continue to refinance two properties a year, which will allow at least two more purchases. I am also going to use the HELOC to buy another, and I am still planning to increase my income. I am going to stay conservative and assume enough income to buy one more property this year. My goal for 2017 is to purchase 12 rental properties.
I will have 47 rental properties at this point with about $31,400 in monthly cash flow. That makes $376,800 a year all going to mortgage payoff! I will pay off the half of a mortgage left over from 2016 and five more properties in 2017, making 14 properties paid off.
From my current income, I will be able to purchase nine rental properties. I will refinance two more properties and use the proceeds to buy two more rentals. I may not have enough money in the HELOC this year so I will not count on that, but I will count on my income increasing enough to purchase one more rental. My goal for 2018 is to purchase 12 rental properties. Note: To buy this many properties I will need about $300,000 in cash for repairs and down payments.
I will have 59 rental properties with a monthly cash flow of $41,000. That makes $492,000 a year all going to mortgage payoff. I will pay off seven and a half more properties in 2018 making 21.5 properties paid off.
From my current income, I will be able to purchase ten rental properties. I will refinance two more properties and use those proceeds to buy three more rentals. With inflation and appreciation, I should be able to refinance the properties for more money than in previous years. I will not use increased income to buy another property. If my income increases, I will use it for fun stuff such as vacations or cars! My goal for 2019 is to buy 13 rental properties.
I will have 72 rental properties with a monthly cash flow of $51,600. That is $619,200 going toward mortgage payoff. I will pay off the half mortgage from 2018 and nine more properties in 2019 making 31 properties paid off.
From my current income, I will be able to buy ten rental properties. I will refinance two more properties and use that money to buy three more rentals. I will not count on any more raises in income since I do not need it at this point. My goal for 2020 is to purchase 13 rental properties.
I will have 85 rental properties with a monthly cash flow of $63,400. That is $760,800 a year going towards mortgage payoff. I will pay off 11 more properties in 2020 making 42 properties paid off.
From my current income, I will be able to buy ten rental properties. I will refinance two more properties again and purchase three more rentals with that money. My goal for 2021 is to purchase 13 rental properties.
I will have 98 rental properties with a monthly cash flow of 75,600. I will have $907,200 a year going towards mortgage payoff. I will pay off 14 more properties in 2021 making 56 houses paid off.
I only need to buy two more properties to reach my goal! I made it ahead of schedule and when I started writing this article, I was not sure how I would be able to reach 100 properties by 2023. I do not need to refinance any properties at this point and I can start using my income any way I want or I could retire!
I will have 100 rental properties with a monthly income of $82,400. I will have $988,800 a year going to whatever I want it to go to at this point. I can stop paying down mortgages if I want to or I could keep buying properties if I get bored. I came really close to the figures I estimated before writing this article. Falling just short of one million in income from my rental properties (which was more than I thought) and just shy of 60 properties paid off.
Assumptions in my plan to purchase 100 rental properties
You may be wondering how I came up with my figures. To be honest I used very basic figures to make things easy on myself.
- I assumed $600 in monthly cash flow per property. I am making between $500 and $700 per property now.
- I assumed each mortgage that I paid off would increase monthly cash flow by $400.
- I do not assume any inflation because that would cause the numbers to be much more difficult to figure!
- I assume my portfolio lender will continue to lend on as many properties as I want. I will have 43 houses financed at one time and then those will start to decrease as I pay them off.
- I assume I can continue to do cash-out refinances with my portfolio lenders.
- I assume interest rates will not increase significantly.
- I assume rental rates will not go up.
Additional benefits of rental properties that my income projections did not account for
Rental properties have great tax advantages, which I discuss here. Every rental property can be depreciated, which will save me thousands in taxes each year. I assume my rental properties will not appreciate, but they have already seen huge appreciation in the last two years, increasing my net worth by $600,000. I assume rents will not increase, but my rents have increased as well over the last couple of years. I rented my first rental property for $1,050 a month in 2011 and it now rents for $1,300 a month. I will most likely be better off than my projections indicate if I can buy 100 rental properties.
These are many assumptions and one or more of them may not work out as I plan. However, other factors may help me do even better than I planned or balance out any roadblocks I run into.
- New ways to find properties: I am going to start direct marketing to off-market owners. This should allow me to buy properties even further below market, and I may even find a few owners who will finance down payments. I recently realized I could use my IRA to buy properties!
- Private money: One of my goals is to find new sources of private money that will allow me to finance more repairs and down payments. This would allow me to put less money into properties and buy them faster.
- New income sources: I have no idea what the future holds as far as opportunities and money. I may find a gold mine that will allow me to buy properties for cash and not have to worry about financing at all!
- I assume I will not do anything with the houses I pay off free and clear, but if needed to I could easily get a line of credit or refinance one of these houses to bring in enough money to buy a few new properties.
What will I do in 2023 if I reach my goal?
I have many things I would love to do if I did not have to work. Here is a list of a few of the things I would love to do with one million dollars a year coming in and no job!
- Start a pizza restaurant
- Start a car dealership
- Travel the world with my family
- Donate time and money to those less fortunate
- Play in the World Series of Poker
- Attend a Super Bowl
- Play golf all over the world
- Buy a Lamborghini Diablo (done!)
- Buy a beach house
- Help teach others about real estate (doing my best now)
I have a much longer goal list than what is above and I hope to do many of these things before 2023. I know I will have time, money, and the freedom to do these things at that time.
I plan to purchase 100 rental properties by January 2023, but I realize that may not happen. If something better comes along to change my plan, I am ready to embrace fully any new opportunities.
Update on my plan 2014
I have already changed focus slightly in 2014 to fix and flipping over buying long-term rentals. I have done this for two reasons:
- There have been more fix and flip opportunities than rental opportunities in my market.
- The money from flipping will help me buy more rentals; rentals take a great deal of cash.
It seemed crazy to think I could increase my income enough to buy this many properties when I first made this goal in 2013. However now that it is late 2014, I can easily see myself making more than enough money to buy 100 rental properties and have plenty of money left over to do other fun activities. At some point, I may decide it is better to buy larger multifamily buildings than single-family homes, but for now, I see more opportunity in the single-family market in my area than multifamily.
Update on my plan 2016
The market has gotten even crazier in Colorado. Houses I was buying for $100,000 are now at least $160,000 or more. The rents have not increased nearly as much as house values have increased. It is very hard to find rentals and I have stopped buying them in Colorado. I have started to look at other states including Florida for a new market.
I also stopped paying off my mortgages early. I decided my money was better used to buy as many homes as I could. It has paid off buying 16 rentals in the last five years since our market has gone up so much. I have invested about $300,000 in buying my houses and my equity is close to $1.5 million. I have even decided to sell some of my rentals and re-invest that capital into more properties in another market.
I wrote this goal out in 2013 and updated it in 2014, and it is now 2016. I think goals are vitally important to achieving what you want in life. Will I reach this goal? I do not know. If I don’t reach it, will I be a failure? No! I am already way ahead of where I would have been without this goal. That is the point of goals, to motivate you to go farther than you think you can.
Update on my plan 2018
Right now it is the middle of 2018 and I have not come close to where I should be with my goal. Am I disappointed? No. Many things have happened that are out of my control; good and bad. The biggest challenge I have faced is the housing market in Colorado. Prices have almost tripled since I made this goal. Some of the rentals I bought for less than $100,000 7 years ago are worth close to or more than $300,000 today. I can no longer cash flow on residential rental properties in my market. I have thought about buying rentals in Florida, but in the end, decided to buy commercial properties here. I even bought a 68,000 square foot strip mall this year. I am buying rentals worth a lot of money, but not as many as my plan called for. Sometimes we have to change our plans based on changes in our lives or markets.
I have also focussed more on flips because I can make money with those in my market. I flipped 26 houses last year!
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201 thoughts on “My Plan to Purchase 100 Rental Properties by January 2023”
I loved your article. My husband and I are new investors with huge plans for our future. I know we will be successful. I know that you will reach your goal of 100 properties.
Your article reminded me of a cd series that I just finished listening to. It’s called “Your Wish Is Your Command” by Kevin Trudeau. You mentioned many things that Kecin highlights the CDs, so I wouldn’t be surprised if you have already listened to them. If you haven’t I would recommend them.
I’m interested to hear about your successes.
Thank you for the comment Sherry!
I am glad you liked my article.
I have listened to Kevin Trudeau, in fact he was the first self help/wealth guru I listened too. I think he has a lot of great info on his CDs and they really are inspiring to become postive and take control of your life. Having said that, I would not spend any money on his programs. I did some research on him as a person and I was not real impressed with his track record.
I have listened to many others since I first listened to him who have been great as well. Jack Canfield, Harv Ecker, John Assaraf all have similar advice with different twists on the details. Kevin Trudeau admits in his CDs he didn’t come up with his material. A lot of it is from Think and Grow Rich and Ask and You shall Receive. Ask and You shall receive is a little different, but has a good message. I still listen to Kevin Trudeau’s CDs to get in a positive mood.
Hi everyone. I’m almost 68 I own 25 buildings in western Pa and 2 student houses in State College. Total rents about $360,000 per year. I would be happy to give advice to anyone interested in buying rental properties. I think its the best investment you can have; but there are several pitfalls. I’m hoping to sell about half of my 25 buildings pay the balance of the mortgage and live on about $200,000 a year. I enjoy the work and interactions with my tenants. In fact I still pick up the garbage for 55 tenants to stay in shape.
Hi Arthur! That is great you have accumulated that many buildings. How many units do you have?
Mark – this is such an inspiring article!! I haven’t even finished reading it yet and had to comment. I’m still new in the game and learning a LOT – but it is very exciting. I’ve been researching a lot of articles online to learn more about HELOCs and how to purchase a second rental property using your first property. Very interesting and so much information! I have no doubt that you would not make this goal as you seem to have it all laid out so well!! Thanks for the great read.
Hi Arthur – my name is Nicole and (so far) I own one rental property. My husband and I are recently married and decided to go on the investment adventure. I’d love to swap emails and get some insight from you if you were willing!!! It’s an exciting opportunity but very overwhelming right now as we are about 30 years old and some of this stuff can be confusing 🙂
Hi Nicole, I am always willing to email [email protected]
I have a dream of becoming a real estate developer and dealer; and being a successiful entreprenuer. Your article has made me stronger in following what I want to do! Thank you very much!
Thank you for the comment! I wish you the best of luck. I always thought it would be fun to develop land. Maybe later on down the road I will look into it as well.
Great article! Very inspiring! I love your focus and planning. It is so important that we have a dream, goals, a plan and focus, and you have them all.
Currently I work in the hardmoney loan industry and one day I too plan on getting more properties!! Take care!
Thank you Shawnda!
I have a very interesting article coming soon that will be written by a hard money lender.
hi mark! maybe you might be interested in our project. we are building the tallest residential techo powered building in the philippines. i can send you full details and projected investment summary. please fell free to email me back at [email protected] thank you!
I am a complete believer in everything you say in your article. You are very strong in your beliefs I have been following subconscious mind work since before even the secret came out….it is a constant struggle for me to change core beliefs,…but I know it works. Right now I am trying to find out how to get more listings from banks,,,any advice would be great, and I would love to find out more about your classes you teach on HUD homes. Keep up the good work with your plan. I know you will achieve your goal.
Thank you Lisa.
I was actually at a conference this week put on by the NRBA(national association of REO Brokers). Attending conferences is a great way to meet banks and asset management companies and to find out where the inventory is. I would also try to join an REO group like the NRBA or US REO Partners if you have a lot of REO experience. It is tough to get into those groups if you are new. Check to see if any local banks are selling REO in your area as they can be easy to get in with than the larger national banks.
Here is a link to my guide for investors looking to bid on HUD Homes. It has most of the info I teach in my classes. Most of my classes are tought locally, but I suppose if I got enough interest I could do a webinar.
I too have a goal of creating a large rental income but having those many houses and mot likely will be spread all over would be a nightmare to manage. My goal is to have 10,000 units by the end of the decade. The only way I can accomplish that is through large apartment buys. If I acquire say a 100 unit building and after paying all expenses and mortgages is to have a profit of $100 per unit per month which equals to $10k a month ($120K a year). And since its commercial getting a mortgage, raising private money or even creating TIC’s will be a much easier sell. Not to mention hiring a professional management company.
Hi Jon, That sounds like a good plan as well. I am starting a property management company this year so I don’t have to worry about the management aspect anymore. That would be a nightmare to manage 100 properties on my own. One of the reasons I focus on SFRs as opposed to multi families is I can get much better deals on SFRs and there are not many multi unit properties where I live. Those that do come up for sale have worse cash flow figures than my SFRs. I know it is different in every part of the country how multi unit cash flows compared to SFRs.
It’s a great goal!! May I ask you what’s your opinion for the point below?
>>For buy-and-sell investers, they did not need an additional layout of capital to purchase his next property. His newly created equity dollars keep compounding with each property he buys and sells.
For buy-and-hold investers, they have to come up with a new down payment for each transaction because their equity is tied up in the property. They have no room to expend, grow and leverage, for a chance to put their equity to work.<<
Thank you Scott, I actually wrote an article on how one of my rentals would have performed as a fix and flip. I actually do about 10 flips a year as well as the long-term rentals. I use the income from the flips to buy more long term properties. There are some valid points that you need less capital when you continually buy and sell homes, but the expenses are much higher. When you sell you have to pay commissions and taxes on the profit, which takes away a huge chunk of the equity. There are certain properties that work well as flips and ones that work better as rentals. I can refinance my rentals and have refinanced two of them so far, taking out over 50k total. I was able to put that equity back to work buying more rentals and still having plenty of cash flow. I think my equity is doing plenty of work even without the refinances, I am making over 20% cash on cash, plus I am paying down loans, plus homes are appreciating, plus rentals give great tax breaks in the US.
Mark, thanks a lot for your prompt reply!
I did a lot buy-and-sell deals in the early investing years because of lack of initial capital.
I do some buy-and-hold and some buy-and-sell deals now but because of the incredible appreciation for the past five years, I don’t know if buy-and-hold is still a right choice or not. (I’m from Taiwan and the price in the area I live at least doubled comparing to the price five years ago. It is hard to find positive cash-flow properties now.)
Sell some of the rental properties will bring me lots of cash for buying in other rental properties. (However the price is a lot higher than 3~5 years ago.)
Refinance some of the rental properties will also bring me some additional cash for buying in other rental properties. (However there will be negative cashflow for the refinanced properties.)
I don’t know when the going-up trend of the house price will stop.
Some investors here are getting cautious right now and some are getting bold and make incredible high-price offer for deals.
Is the situation the same as the market in 2006 in US?
(price is higher and higher month after month. good deals attract more than 10 offers in one day.)
It is similar in some area of the US with multiple offers and prices rising. They have not doubled in my area in five years, but there may be some areas that have seen close to that much appreciation in the last two to three years(California). I would not invest in a long term rental if it had negative cash flow. I have talked to other investors in places like California, Boston and New York where prices are too high to cash flow. They invest in other states where the numbers make more sense.
Do you think your local economy can support prices that high and people make enough money to afford those houses?
I really enjoy the article and your planning.
The great thing is there will be things/opportunities that will come along and you will now have the ability to react too in ways you cannot yet imagine.
My wife and I purchased a little 6 plex apartment building 15 years ago. I did not really have a plan or goal at the time. But continued on buying a couple houses a year. But then realized I could not keep up with all the needs of 13 units and do my day job also. ( I’m also a Realtor ) So that year I decided that I needed to own enough units to employ a full time maintenance guy.
Most of the loans we take have been on 15 year money. What I did not realize/plan at that time is someday the asset gets paid off. I’m not talking about the extra cash flow ( No principal and interest payment). I’m talking about using the property as leverage again. While still getting the cash flow.
To date we own:
The same 6 plex
71 single family homes
A 19 unit commercial shopping center
69 unit mobile home park. ( only renting the land. Everyone owns their own trailer ) lot rent is $230.00. 61 lot occupied.
We now collect $960,000 a year in rents. My new goal is now 1.5 million. Why? Subtract a 38% expense ratio and subtract 35% tax bracket leaves $50,000 per month in free cash flow.
Seems a bit lofty but still amazed to have gotten this far.
To be honest…. I never thought this was possible… I was geeked about the $2550 a month the 6 plex was doing when we purchased it.
Hi Jim, Awesome comment. I love hearing success stories! I have people asking what if I don’t reach my goal or something better comes along. If I don’t reach my goal, then something better must have come along. Like you said, who knows what will come along and what opportunities will present themselves. $50,000 per month take home pay seems pretty nice to me!
Hi Jim Posey and all,
I am a real estate newbie living in California trying to start out in real estate. I’ve saved a long time and finally have enough for a down payment. I hate my job and want to make real estate my career like some of you and do but I’m just not sure where to start or what my plan should be long term. If anyone is able to email me at [email protected] and show me the ropes and help me form a game plan as to how I can join all of you in real estate success, please do so.
Thank you for your time,
Hi AJ, the best advice I can give is to learn from another agent. Find successful agents in your area and ask them if they need an assistant. Tell them you want to learn Real Estate from a great agent and their name kept popping up.
Thanks for posting this! I really liked reading it and hadn’t thought about the visualization idea.
Thank you Thomas! Visualization is an awesome technique to get your mind on the right things.
Jim Posey has the right idea. My first ten rentals took about 30 years thanks to two down markets and a divorce. My second ten took ten years. I am hoping my next ten take about five years. As you get more, they come quicker by using tax free exchanges, leverage and cash flow. For instance, if you had 100 houses and were getting 1% of value in rent, you could buy a house every month, WITH CASH, and if 50% leverage, every two months. It grows exponentially! Good luck!
Thank you for the comment Mike! I know it will be tough, but I think I can do it.
Hey Mark, I find your drive and approach invigorating. My personal story… in early 2010 the market here in West Michigan was in the dump and I decided to buy a couple rental properties. In the 3 years that followed I have added a total of 77 rental properties. They are all single family homes. Truth be told I only have 76 because I lost one in a fire 3.5 weeks ago. Needless to say man this is not a quest for the weary. Shoot man in year 2011 I purchased and refurbed 28 properties alone, meaning I was having to go to a closing at least every 2 weeks that year. My average cost on each property (purchase price + refurb and readiness to rent) was approximately 37k. My average monthly rent is 800 per month. I am in cash and have no loans on any of these properties. The crazy thing Mark is that the deals are vanishing and I am finding it hard to stop. Another thing I will mention is that I am not even to this day convinced I did the right thing going all in on these houses. Sure I would like to get more – that part of me is real. The other aspect of it though is the repairs and headaches and extreme long term costs of holding all these single family homes. Shoot man in the next 15 years I better be ready to drop 200-300k on roof replacement alone. I have no idea how you expect to get the returns you are mentioning and what kind of long term expense ratios you are counting on. I plan on 45-50% expense ratio. I own them all in cash so I still do alright, but still these costs are staggering and real. What I have always tried to do is buy homes where the purchase price is not greater than 5 times annual rent… this is tough to do but really seals the deal on it being a safe long term investment. Anyways, I commend you on your quest. Ryan
Thank you for the comment Ryan! That is impressive to have bought all of those properties so quickly. I agree it can be overwhelming dealing with maintenance and expenses, that is why I like to buy newer homes if possible and stay away from homes over 40 years old for the most part. I also buy middle of the road single family homes, I think they tend to have less maintenance, turnover and repairs than the lower end rentals. One thing I know helps my expense ratio is taxes are very low here, we pay about .05% property taxes on the properties. If you average out all of those roofs over 15 years, it really is not that expensive. $300,000/77 is $3900 or so and divide that by 15 years that is only $260 a year and $22 a month. Sure you will have other repairs and maintenance, but I don’t think it is quite as staggering if you average it out over time. I do make a higher percentage return on my money having it leveraged over cash since I have less cash into each property.
Thank you again for the comments and it will be interesting to see what the next 15 years are like for sure!
100 SFM homes is a lot of work! Why don’t you diversify into some commercial properties that require less or no work.
I am in the process of starting a property management company right now which will reduce the work greatly. I get much higher returns on the SFRs now then I can commercial in my area.
Ryan, if you have them all paid you should not worry about 200k in repairs.. your intake home from those properties alone has to be over 600k a year. I dont know many people making that much money.. i thought i make a lot with 300k lol
You gave up on the garbage can too soon. It takes 2 weeks to learn a new habit. Try it again and this time wait 2 weeks and see if that’s true. It’s more important than just getting used to where the garbage can is or driving to the right place when you change jobs or move. It might help you with other more important habits, like quitting smoking or losing weight, or thinking positively!
Thank you for the advice. I went ahead and bought a new house so I wouldn’t have to worry about the trash cans. lol. I do agree it takes time to create a new habbit and train your brain
Great article but a few questions…where and how do you decide to spread your risk. I imagine you’re not going to buy all 100 properties in the same town? That would be very risky if the economy tanked or jobs moved elsewhere and your rents went down. Just curious about how and where you decide to buy the rentals besides using the 1% or 2% rule.
For now I am investing close to where I am because I can manage them and I know the market and can buy them below market. I want properties that cash flow great. I look for high rent to purchase ratios in middle of the road price range. I don’t want lowest priced homes due to high turnover and maintenance.
My town/area is very diversified with jobs and employment. The economy has never tanked here before so I’m not worried about it now.
Hi there, whats the progress at the moment? How many houses do you currently have?
Hi Andy, I just purchased number 8! https://investfourmore.com/2013/11/21/rental-property-number-8-purchased/
Can you give me an advice for creative real estate finance? maybe something different than what you do?
Hi dan, Yes Ben Leybovich has a program on creative finance. https://justaskbenwhy.com/?affiliates=8 I did a review on it here. https://investfourmore.com/2013/11/11/review-cash-flow-freedom-university-cffu-ben-leybovich/
Wow 100 rental…. I only have 4 now (all paid off) I’m a Appraiser/Broker. How would you manage 100 rental??
I am starting a property management company now that will do everything.
Can you help me find a portfolio lender in Philadelphia? I have 6 properties so far, and planning to buy my 7th. I went to Wells Fargo and they turned down because of my LTI ratio. Because of my relationship with their officer, he would good enough to suggest that a portfolio lender would be my best source. Thanks in advance.
Hi Dan, have you seen this article? It includes my tips for finding a portfolio lender https://investfourmore.com/2013/05/12/how-to-find-a-portfolio-lender-who-will-finance-multiple-investment-properties/
Cool plan! I have $400,000 cash I want to invest in rentals. My issue is dealing with the day to day problems of owning rentals. I am looking at using a property management Company. What are your thoughts in these companies? I know that their fees will reduce cash flow and slow the multiplier effect.
I would like to turn real estate to a full time job, but for now I still need to work. Thank you for you detailed plan. I would like to own 100 rentals as a goal, but would like two have a mixed portfolio of residential and business properties.
I am thinking much bigger thanks to your leadership!
Thank you Rick! Sounds like you have a great plan. I started a property management company myself. Once you get to a certain amount of properties it starts to take a lot of time to manage them all. Have you seen my article on finding a property manager?
Did you buy anything rick
Wow thats an aggressive goal. Good luck. I have a goal of 4 SFH properties and 1 aprtmant building.
Thank you, I started with smaller goals and they kept getting bigger as I accomplished the smaller ones.
I believe you will reach your goal & potentially faster than you think. I don’t know which company you are with but you think & sound a lot like Keller Williams Realty. If not please do yourself a favour & look into one in your area (please use my name when you call). If this is not something you are willing to try at least read The ONE THING by Gary Keller if you have not already done so. The Keller way of thinking will get you there faster!!!
Hi Joanne, was this comment directed to me or another commenter? I am Mark, but no worries. I have read both Keller books the millionaire investor and the millionaire agent. I have a couple of his other books on my list as well. I have never been with Keller Williams, but my wife was when I met her. There are actually no Keller Williams near by me. The one in Greeley closed a couple of years ago and the Loveland and Fort Collins offices were bought out be Coldwell Banker.
I am curious if the 100 includes multi families or only SFR’s. How do you manage insurance costs, property management?
Hi Frank, the 100 are all SFRs at this point and that is my plan to continue with SFR. My team manages the properties right now and I have had to switch insurance companies.
Mark, I would like to buy more as well, however my wife is not on board. I have two properties so far in a span of 9 years. I would love to have more, but need to sell my wife on it and figure out how to acquire them with no money down!
Jim, you better get your wife on board before you do anything!
My name is Joe last and im only 16 but as I get older I would like to do this as well… but the main problem I can see right now is how to afford deposits if like UK requires minium 25% and that is like £85,000 on a £250,000 house which is very costly… it will take a long time (years) to just save up for one deposit… can you please explain your ideas:) the only thing I can figure is if you get a good/high paid job and save but if like yourself is looking to buy 100 rentals homes then that is like over £1,000,000 pounds of deposit to put down and i understand that you will be able to afford £85,000 towards the end when you have like 50+ rentals but right now… im not sure… please explain questions to me and email me [email protected]
The hardest part about getting started is saving for down payments. Do they have owner occupant loans in the UK with lower down payments? It would be tough to buy 100 houses without a high paying job and being able to save a lot of money.
why 100 rental properties instead of 10 apartment complexes?
Hi, because in my area single families cash flow better, have higher cap rates, I can get better deals on them and I can buy single families more quickly instead of having to build up my cash for a multifamily. I wrote an article on it called single family versus multifamily
Hey Mark, thanks for posting. I’m wondering if I might share my situation with you and get some feedback. I started off purchasing my home and have it paid for. It’s worth 100k-120k. A good elderly friend of mine bought a rental property in 1986 and found a great renter. He’s been there every since. Well, as time would have it, he passed and I purchased the home for 30k. The home generates $400/mo. I barely raised their rent after all these years. I figure a bird in the hand is better than two in the bush and besides, they never call me. I have that home paid for from the tenants over the last 5 years. I figure you’d get a kick out of the move I put down. I purchased the home with $10k of my money and refinanced my truck for the rest. It cost $50 to refinance it over a 5yr. deal. I own the house outright from the word go. That’s number 2. One day I was visiting my mother when she told me of her neighbor selling their rental next door. I told her I was interested in it if I could buy it at a ridiculous price secondary to the age of the home and the fact that it was very small. It is a one bedroom. He was asking 20k for it. I spoke with him one day and said I’d be interested in it at 12k. I figured the old saying “you never know until you ask” was a great starting point. I prayed about it and told God his will be done. Well, I guess he loves me, 😀 (actually I know he does). Anyway! The gentleman sold me the house for the offered price. I refinanced on my truck again. I think I still owed a bit on my last loan, somewhere in the 5k range. So, that’s #3! It generates me $350/mo. I still owe about a yr. on my truck loan before I get it paid off for a 3rd time. 😀 I’ll be honest, I’ve not bared down and disciplined myself with the income from the properties. So, that is where I am. I’ve managed to save 10k along the way with my 80k / yr. job. My question is direction. I can’t borrow against my truck any more. It’s to old now. Still runs great though. I love the $750/mo. income. I’m wondering about the next step. I saw a set of 2 quad plexes in the bigger city near by and am wondering about purchasing them. They want approx. $339,800 for both buildings. That is $42,475/unit. He states in his listing that the property generates $3600/mo income. Can I purchase as owner occupant if I live in one of the units? I figured I’d rent out my current home and move into one of the units for a yr. if that was possible. I imagine the interest rates would be better as well. What insights might you offer me in this situation? I also figure to work on getting the price of each unit down to $35k/unit. That would land me at 280k. If the seller agreed to that amt., and I could come up with the 56k / %20 down would I be going about this the right way, or is there an easier way to play my hand? I guess it all depends on the owner occupancy thing. My current home would rent out for somewhere around $700/mo. All together income from rentals without including the quad plexes would be $1450/mo. That alone would cover most of the note. My question is how to maximize my income by playing my hand the best way. My only debt is my truck. Thanks for any input you might give.
Hi Stacy, thank you for the comment and details! Way to use your truck to buy houses!
You can buy a 1-4 unit as an owner occupant, but you can’t go over 4 units from what I understand. 5 units or more is usually considered a commercial loan. Have you asked the seller if he would consider any seller financing?
100 SFRs is a nice push goal to keep you busy for the next decade. Good luck with your pursuit. I have acquired 19 properties in 28 years . Plus, equity in 9 real estate partnerships with apartments, strip malls, commercial property, storage lots and parking lots. Have made many contacts leading to equity in equipment leasing, property management, vending machines, record storage, Christmas tree farm, dried food and plastic bag businesses. My original goal was $100K per month in income. The best part, after years of trial and error and working hard and getting smart in the pursuit of building my little empire, I now have the freedom that plenty of cash flow provides.
Hi K.W. Sounds like you are doing awesome! That is great to have so many sources of income.
I own 0 but today I made a goal to buy my first income property in 6 months. Going to learn as much as I can starting now! Im in Ontario Canada by the way.
Hi Ebeneezer, Thank you for the comment and good luck!
Hey Mark, Chris from NC here. I came across your site as I am interested in real estate and I truly enjoy reading your posts. I commend you for showing people what you are doing and how you are actually doing it. It puts things into a manageable perspective and shows people how someone can do what they want if they put the work in and focus.
I too am a big believer in positive thinking and setting enormous goals. Your goal of owning 100 rental properties is one of the major factors why I have subscribed as I want to see you succeed in achieving this monumental task. I have no doubt that you will succeed as it appears you have the right attitude and work ethic.
Les Brown once said they he believes that the reason most people fail in life is not that they aim too high and miss, but that they aim too low and hit. I firmly believe that and it appears with the size of your goal that you believe that as well.
I’m pulling for you and will keep myself updated on your progress. Also thank you for the informational tidbits on real estate investing aside from your goal.
Thank you Chris! I appreciate it and I hope you reach your goals as well!
Hey Mark, I’m managing 9 single family homes myself. I have a full time job and sometimes I don’t feel like managing then. Would you share with me on how you started a management company. I would like to do the same. I didn’t think I would continue to invest in rental, but reading your article has reignited my fire. Where are you located? I’m Atlanta.
I have 9 people on my team and I used a couple that are not completely busy to start talking to tenants and renting homes. It worked good for me because they are already in the real estate field. You could always hire a Property manager as well.
Wow! My jaw nearly fell to the floor when I read your article. I feel somewhat alone in my run to financial freedom. He’ll, that isn’t even what I want to call it. I want to be wealthy beyond what I’ve ever dreamed.
I’ve read think and grow rich quite some time ago. An excellent read. My story is one made for Hollywood. I really enjoyed the audio (available on YouTube) called ‘The Compound Effect’ as well as The Four Hour Work Week’ by Tim Ferris as well as The Magic of Thinking Big. As I read your blog I swear it was like reading my entire plan of action through someone else’s eyes.
My friend. Listen. Your plan is exactly (to the frigging letter) what my plan is. ONLY I take it to another level. Every single action you mention in your article (including all the self-help comments, the visualization, the feeling the touching, (I walk in neighbourhoods with multi-million dollar homes as though I live there – and you know I feel right at home and have an internal sense of ‘belonging’ with this group of people. Also, about thinking positive?! I am applying a strategy from the magic of thinking big book whereby I have a simple (stylish enough of course) bracelet that I put on my right wrist. The moment anything negative comes out of my mouth I must change it and put it on my right wrist. I must continue this until I can go 21 straight days without uttering anything negative about anyone, anything, absolutely anything deemed a negative comment. I’ve nearly done 24 hours of late but still haven’t – in all honesty. What hasn’t done for me? I am moving mountains with my mind. My thinking is clear. I filter all the information I take in. I don’t listen to the news, I pretty much stopped watching television with the exception of Disney channel with my eight year old. I am more active I walk between 7 – 10 km daily. I am putting the final touches on my plan of action. As you mention, positive thinking isn’t enough to get you to your goals. There needs to be a plan of action in place – a sound one I might add. Only then by putting the plan of action into ‘action’ coupled with all the positive thinking and behaviors will success be mine (ours).
Although, I am not wealthy (yet) I have NEVER in my life been this happy – EVER.
Please excuse me as I am outside at an outdoor café called coffee culture here in Mississauga Ontario, and would love to have a conversation with you sometime in the near future (even if only to just say hello and feed off of each other’s aspirations) I would be happy. Anyhow, I have just witnessed a car accident and need to go and give my name and number as an independent witness (something I would have NEVER done in the passed – the old thinking of ‘It’s not my problem’ but no longer) and make sure every one is alright. Gotta run. But thank you infinitely for your words of wisdom – for such a young person.
Thank you for the message Daniel! That is awesome you have made a transformation. I will see news on the tv once in a while and I have to turn it off, because it is all so negative. Sounds like you are on an awesome path! I will mention that this 100 property goal is not the end or my biggest goal it is only part of the big picture. I am constantly changing and adding new goals. I am guessing you did not see the recent Facebook post, but this gives you an idea of what I have been up to. https://www.facebook.com/InvestFourMore?ref=hl check out the post from 6/16
one challenge is that once someone has 10 financed properties ,it is very difficult to get more financing. A person might have to get a commercial blanket loan on the 10 properties and a higher interest rate then they could start financing rentals again once the 10 loans are paid off. They will just show as one commercial loan and conventional lenders are ok with that. Have you ever thought of investing out of state where you can get higher returns?
That is why I use a portfolio lender. I am in the process of getting my 11th loan now with them.
I am having similar problems. I am exploring options with a commercial blanket loan on my personal rental portfolio (10 SFR). I have 4 properties with mortgages, the rest are free and clear. Having 4 mortgages on investment properties prohibits me from purchasing All Cash and doing a full cash our refinance based on the new appraised value. I can of course, purchase up to 10 , (6 more) with a min. of 25% down, or purchase the property all cash and refinance cash out but I am only allowed 65/70% of the priced I actually paid for the property (not the true appraised value).
Neither one of these scenarios really helps (in my market). If I put 25% down ($56k) and take a conv. mortgage I will have approx. $600 per month cash flow positive (not terrible). If I purchase all cash ($225k) I will only get back approx. $146k (65% of $225k) which doesn’t afford me enough money to purchase another investment prop. all cash, although I will be positive cash flow per month over $600 +/-
I am a RE Developer in NY (Nassau County LI), I have access to properties at well below market value, but still very expensive avg. $230-240k. The last 4 investment purchases went like this;
1. Purchased all cash
2. Clean up make rental market ready and acquire new tenants with lease.
3. 6 months time or less Cash Out Refinance based on new improved value
example: $220,000 purchase, new appraised value $385,000, refinance cash out 60% of the appraised value =$ 231,000 cash back. After PITI, I make approx. $400/500 monthly positive cash flow. This works GREAT, since I have all my money back and I have positive cash flow every month.
If I consolidate my portfolio with say (1st Key) I will have 1 new loan at appox 5.4%. My avg. combined interest on the 4 current mortgaged props is prob. about 4.5%, so not too bad of an increase. This will open me up now on 4 more full cash out refinances, since my portfolio will now be out of my personal name or come up as a commercial
The major problem is the market I am in. Prices are high, taxes are extremely high (avg $9,500 per year, per SFR!), although the equity / values are high. It seems my money will go MUCH further out of state where I see many of you invest in.
It has taken me time / money / and efforts to get a 10 home SFR portfolio in one of the most expensive counties in America. The upside is the value of my portfolio is very high, the down side is, I will continually need large amounts of money to make moves, and this is the problem I am having..
Mark, I am blown away with you 100 home goal. I am very impressed and intrigued! I am feeling though, it will be very difficult if not impossible to achieve this type of goal in my market, without me making substantial income to keep purchasing or blindly investing in out of state where I know nothing..
Quick breakdown of my portfolio of 10 SFR;
Appraised Value: $3,500,000
Outstanding Debt: $800,000
I have TONS of equity! I have TONS of positive cash flow! But I am sort of stuck at the moment.
Hi Leo, I would definitely look into 1st Key and B2R. They may be able to provide a blankey loan and free up much of that equity. Those taxes are crazy!
I would also look into buying with hard money and then refinancing. You can’t do a cash out refi with over four, but if you have a hard money loan in place already you aren’t cashing out, you are replacing a loan.
Thanks Mark. I haven’t thought of the hard money loan cash out scenario, this is very interesting. I have 2 great relationships with hard money lenders. I havent considered this as option as I thought it wouldn’t be possible. So you feel that I would be able to purchase my next SFR with a hard money loan say for approx $230k, put down about 10pct ( I know lender would be ok with this) and have a conventional lender within 6 to 12 months give me a new 30 yr fixed loan for say $238k (70pct) of a new appraised value of $340k, Hard money lender get his $206k back and I have a few bucks extra..? Or will only be able to satisfy the existing hard money loan?
Mark, From what I am being told, if I purchased the property with hard money for $230k I will be only be able to refinance with a conv. lender for appox 70% of the purchase price or the loan amount of $230k. Which give me back only $161k. If, the hard money lender was to say for example a $300k loan on the property, then I believe I would be able to almost do a full cash out refinance, walking away with approx. $210k.
Does this make sense?
Not sure how I would go about taking a $300k loan on an actual purchase of $230k?
The process of purchasing a property, rehabbing it, renting it and refinancing it for the Full Market Value at 70% of the new value stops at 4 homes as we know.
I love these types of acquistions as I am purchasing well below market value, have the ablilty to rehab cheaply and quickly and although the taxes are high, the rent rolls are equally high.
So after the 1st 4 purchases, I have been able to refiance with a 30 yr fixed loan and get 90+% of my cash back and my cash flow per month is positive at min. of $600-900 per month.
Hi LEO, Correct you could only refinance the current loan amount, nothing more. Some hard money lenders will lend on repairs made as well as purchase price. Remember the refi is based on 70% of the value of the home, not the value of the current loan. You can refi 100% of the current loan if the value is still high enough. I have never done this, but a hard money lender told me they do it all the time. Example. purchase price 230k, hard money loan 230k. Appriasal after purchase comes in at 300k. 70% loan to value would be 210k which should be no problem since the current loan is 230k.
If I were to ask you this. Are you interested in investing in the Philippines
I am not.
Mark, I want to be very clear on this please. I purchase a rental property with a hard money lender for $230k. Approx. 6 months or less, i would have to go to a Portfolio Lender, not a traditional lender? At this point they value the property at $300k and they should allow 70% of the new appraised value $210k, I pay off the hard money lenders $230k, (coming out of pocket for the difference)?
From what my traditional banker is claiming, no matter what, after the 4 mortgage i have in my name, the next 6 will only be allowed to give me 70% of the purchase price, regardless of any appraised value. I have not used a portfolio lender as of yet. I understand their rules are different and this is the only way i could do this transaction. Hard money purchase–Portfolio lender refi correct?
Thanks again for you insights.
I would talk to a new lender. From what the hard money lender told me (he says he personally did this up to ten mortgages, after that he could not) he refinanced with a traditional loan using Fannie Guidelines. My portfolio lender would not do this because they require seasoning of a year. A Fannie Mae refi does not. This is a pretty advanced strategy and I doubt your lender has ever heard of it.
I have just recently agreed a cream lease on my commercial property, with a well-known company as tenants, 10 yr renewable lease option, and full insuring & maintenance, offering a good yield, and now i wish to sell, but i am unsure how to locate a genuine cash buyer.
Hi Audrey, Find the best commercial real estate company you can and list it with them.
I don’t know what is your area or areas of preference but if you have an interest in South Florida we would
like to work with you where we have been active with best results for the last 30 years.
J A S Properties Marketing Corp.
Just in Colorado for now.
South Florida is the most dynamic Real Estate market of the world
I like your attitude and have no doubt you will reach your goal. My husband and I have had 52 rental units at a time but have owned many more. We had rentals for 25 years. I would like to be able to talk to you on an idea I don’t see you mention that could help you speed this up a lot! Also, some pitfalls to avoid. If interested please email me at [email protected].
What’s your idea Betty? I think most people reading would love to hear it as wl.
Great article Mark. I felt it was written by me :-). Word by word it matches exactly my view on RE investments, financing, the aggressive goal or 100 units even the timeline when you started investing in RE and how many properties you currently own and also the dollar amount that you are making through these rentals. Very surprised. I wonder a lot of people like us started out in that time frame when the world was falling apart. Its becoming extremely hard to find those kind of bargains and my only concern is staying focused and avoiding value traps in order to have a aggressive but sustainable growth. I have seen way too many people who started out good and then let go off their principles in order to grow faster and did not realize how investment environment around them changed. In fact I bought my house (& my first property) as REO that was foreclosed by such an investor who ended up filing bankruptcy.
On a constructive note, I see a lot of people who commented here are investors and therefor I would propose to create some sort of group where we can all discuss our experiences, resources and how the RE market is doing around the country. Let me know if anyone interested.
Hi RK, thank you!
It is tougher for me to find deals as well. I can pay more because of rising values and rents, but I am still sticking to my guidelines. I have the forum on the site, but it is not used much. I would love to get that going. https://investfourmore.com/forums/
Thought I was the only one thinking big , want to buy 100 rental properties at a specific period of time. Liked your plan. Great, Dream big! If The Lord tarry I will get there. Realtor and Financial advisor .
Hi, Thank you for the comment and good luck!
Great article! I currently have 7 units (4 paid for) and currently bring in $4200 month. My problem is that I cannot find financing to continue adding to my portfolio. Also I believe my areas property values are starting to decrease. (Detroit for example) what would you do in my predicament?
Is cash flow decreasing? I don’t think a decrease in values is that big of a deal unless you see the entire area going downhill. If the entire areas future looks dim, maybe selling is an option.
Happy for your success. I would like to talk to you about reducing your Building Material costs on your rehabs for your rentals and your flips. Our pricing is 10 – 25% less than Home Depot and Loews. I work with almost all the major rental aggregator’s across the country.
Please send me an email and lets exchange contact information,
Hi Matt, here is my email [email protected]
If you can send me more information on that, that would be great!
I am very excited for you! I got into the real estate market after one random conversation with my friend back in 2011. I now own 13 units. I am only 26 and i feel like this has changed my life entirely. Yes at times it drives me crazy and some tenants make you want to run for the hills at times, but thinking long term when they are paid off, that makes it all worth it.
The process is hard but it is doable. I never really had anyone guide me but I have learned quite a few things and I still love to learn and hear from people who have done this at a greater scale. I do find it hard to refinance or do cash out refi when your D/I is taken into consideration, especially the banks. I have done a few with hard money loan and then helocs but even that is getting a bit hard. Being in South Florida, the market here is getting hot again and prices are going up fast.
I am currently trying to put some into a blanket loan. If you know someone (or anyone here does) that you recommend that would be great. I feel like I have all of this equity tied to the houses but my cards are used for the repairs that were done on them. I would like to continue buying more and one day too reach 100!
Finally, what do you recommend for a property management company. I can take it now but at times it gets crazy and I know eventually it will be unmanageable for one person. Thanks!
Hi Yuni, I don’t know any lemders in your area, but look for a portfolio lender. Here is a great article on property managers. https://investfourmore.com/2013/07/10/how-to-find-a-great-property-manager/
Thank for you your encouraging articles. I just finished reading another one of your about good debt vs bad debt. In this article you say that you can use your cash flow to pay off other homes early. Can you elaborate why you would to do that instead on using that money for down payments on more homes?
Hi James, It all depends on your goals and how many properties you want to buy. Also depends on how easily you can get loans on many properties.
Your plan is very interesting and very inspiring. Through reading your plan I understand how you are paying off mortgages and getting more money for new investments but what are you living off of? Raising kids is expensive and I am just curious what you are using to fund your family? Do you still hold a job outside of this, or is it just more frugal living off money taken in from rent? I appreciate you writing the article as it has answered many questions that I have held for a long time.
I have a real estate team that sells houses and I flip houses as well. I definitely live off more than the rental income.
Mark – great article. I own 17 SF homes in the Chicago area and would like to grow it to 100 as well! I found a good lender who understands the collateral and I purchased them all in the last year with 25% down and am getting about 20% cash on cash returns on a 500k investment. They are fully managed so I’m hands off.
You talk about cash-out refinancing as an integral part of your strategy to grow, but aren’t you getting over-leveraged on these houses? Remember 2008?
Hi Josh, When I buy I put 25% down and then make repairs. I usually have a 60 percent or lower loan to value on them when i am done. When I refi I am still only going up to 75% of the appraised value which is often low in my opinion.
Wow! As I was reading I kept repeating the phrase “great minds think alike”. My goal since moving to Milwaukee WI is to own 40 rentals. Still do not know how I will achieve it but 40 has been my goal, I am up to 4 now. Thanks for the article.
BTW, I get at least 3 great turn key properties a month that I consider excellent deals, just ran out of capital to purchase them (all under 30K)
Hello Mark, great plan and goal, wish you all the best, right now I have 10 rentals and I reached my limit from DTI ratio and from a residential loan limit, how do we keep going? who is going to keep giving us loans when we reach the limit? thank you
A portfolio lender or one of the big finance funds. https://investfourmore.com/2013/05/12/how-to-find-a-portfolio-lender-who-will-finance-multiple-investment-properties/
Cool article, I thoroughly enjoyed it and I thank you for all the great free content.
You better check off “play in the world series of poker” in the next few months.
I will be buying my first rental property this year.
I’m in a tough market (las vegas) so the returns won’t be as good.
85k for a 2 bedroom condo to rent for 800 is the best I can find.
I am planning to use cash for the purchase, are there any benefits to that ?
THank you Ben! I prefer to use loans and I discuss why here. https://investfourmore.com/2013/08/28/should-you-pay-cash-for-a-rental-property/
What is the reasoning behind paying down the mortgage on some properties but then refinancing others? Doesn’t this basically put you in the same place? Other than saying that you aren’t using any of your cash flow to purchase more properties?
Hi Cody, I have stopped paying off mortgages for now. Before I would refinance houses that had the most equity, which would push out the loan ARM term. I would pay off the houses with the lowest loan balance. In essence I would benefit because the loan term on the refinances would be longer and I could take cash out. The loan balances would be zero on other loans when I paid them off. If I had just saved cash flow and not refinanced, the loans could mature sooner and rates go up on the properties I would have refinanced.
I’m doing same goal by in a lower scale. My Goal is 50 rental houses but here in California in the central valley areas. I have 10 now 40 more to go and looking to accomplish by 2023 also. My challenges so far is finding lenders (portfolio) in the valley, most of them wanting 25 to 30% down, I could not find the right lenders that would work with me to put down 20%, even if I show liquidity, net worth and excellent credit. But no matter I will still go forward and face this challenge because I know opportunities and creativity will always there.
Hi Vincent, Thanks for the comment. Keep searching and hopefully you will find one. Sometimes it takes developing a relationship with one as well before they giev you the really good terms.
however, the prices in southern ca are way too over-priced as you know. I am not comfortable with out-of-state investing too.
Would you recommend a single family home 3bed 2 bath for $244k or $110k 2bed 2 bath condo. both are in the same city. in both scenarios, cash flow is $200 per month..
hard to say without knowing the market and the houses better. Are you accounting for HOA fees? Are you paying cash or getting a loan? Do they need repairs?
Hello Mark. My comment comes a while after this your article was posted, but i just wanted to thank you for the encouragement that this has given me. I’m 19 years old and i’m in the process of beginning to invest in rental properties with my father, utilizing his assets and income, and my income as well. After reading your article i have now set our goals to be similar to yours, but a little smaller. We currently have one unit (a condo) which brings in rent of about $3,300 per month. My goal for my father and I is now 30 units in 10 years for a total rent of $1 million per year (where we are located in southern california, rent prices scale differently).
Thanks again. Maybe in 10 years i will email you and we can see how our goals have panned out.
Hi Keith, thank you for the comment! It is a totally different market in cali that is fr sure. You don’t have to wait ten years to email me!
Wow! Unbelievable story and goals. I am very impressed and will certainly be looking around your site for more details!
Thank you Erik!
It’s very good article it increased my knwldge. It’s very exciting. I have not yet finished reading.
I am very much interested in real estate. I want to become a investor. Your idea buying and keeping the property is very nice.it inspire me. It’s realy different.
I am living in India and working as a geologist in kuwait. I want to become a real estate investor. I already started investing from this year in my nearby area of city. I brought 2 plots in different locations. I am going to contruct a house on 1 plot after that I will sell it. Actuly my father is bricks manufacturer he told me to construct house and then sell it.
But after reading your article I am thinking that I can give it on rent. So that I can get continues income. If will buy 10 properties in 3 year that also good for me…
Please give me some idea so that I can achieve my goal..
Dinesh Digambar Gadpal (India)
My email: [email protected]. com
A lot depends on the costs to build and the rent you get back if it is a good investment.
It’s realy exciting.. great idea to make money.
Thank you Dinesh
Hello I would really like to connect with you to discuss some ideas. We both have the same goals and I also follow and study law of attraction. I currently have 57 rental properties. Please contact me so we can share ideas thanks!
Hi Leon, Send me an email [email protected]
Guys – this is amazing. I have big goals in real estate but need some guidance on how to get lenders to lend.
Leo/Leon/Mark – I would really like to connect with you and discuss opportunities.
Please send me your email to contact.
Hi Nishi, [email protected]
Hi Mark I’m in Miami, FL I grew up here and just got my RE license and it has always been a great market for rentals. My goal is BIG too and I will buy rentals and build and hold and sell four plexus. I am just starting so not sure how many or how fast yet but will keep you up to date.
Hi Jorge, Thank you for the comment!
I use to think that owning a lot of rentals was a lofty goal. Each time I met someone who owned a lot more rentals than me, I would secretly feel like they were ahead of me and that I needed to work harder. I started buying rentals in 2009 full time after the economy crashed. Since then I joined Lifeonaire and have determined that I don’t need 100 houses to live my dreams. Chances are you don’t either. In the group we create a vision for our life and try to live debt free. I am now in the process or rebuilding my business so that I have no debt and will sell half of my rentals so that I only have properties that are mortgage free. The book lifeonaire is available, I have a coach as part of this group and am really making some positive changes. The biggest challenge (besides vacancies) is that it is very hard to control your expenses with rentals. Anyway, thanks for listening.
Everyone has different goals. For some it is being debt free. For me it is building as fast as possible.
So how to you determine which are better fix and flip opportunities and which should become rentals with long term cash flow?
How do you manage 100 rentals? Collecting the payments each month and dealing with tenant issues as well as unforseen property expenses? I imagine you can manage a smaller number of rentals without help but a large number like 100 must be very time consuming? Do you use a property management company?
I use a property manager. I would not want to manage that many either.
Mark, how do you plan on getting 100 mortgages and what seems like dozens of HELOCs. Don’t you run into issues with your debt to income ratio? Who is lending to you?
Portfolio lenders and national rental lenders have many programs available. When you buy with great cash fow it helps your debt to income ration as well
Hi, I’m enjoying reading your blog, I have one rental property and hope to expand and get a few more in 2016. Do you buy and own the properties in your personal name or in a business name? I am not sure how that works, if I buy it and then transfer it to an LLC so that I am not personally held liable. What do you think? Thanks!
It depends on a lot like your lender, state costs and more. Mine are all in a llc, but it doesn’t make sense for everyone.
Hi Mark! Great stuff here! My parents have owned and managed 20+ properties most of my life. So, I learned quiet a bit growing up. I have recently started my own collection here in East Texas, with about 7 houses. My plan is similar to yours, borrowing against one to buy another and so forth. I would love to find a lender around here who will finance 10 or more at a time! Just like you, I want more than enough money to give to those who are less fortunate. My only question is; are you a Christian? It’s just a curiosity. I am for sure! I just wonder if you are, do you give credit to our Savior for your blessings? Anyway, thanks for the WONDERFUL blog! I am going to purchase your book for sure!
he probably isn’t christian lolz
Love the hustle guy, why did you have to buy a Lambo and make yourself look like such a ****? Nobody making 200k should driver that car.. If you want anybody with a brain to take you seriously, hide that thing !!
Hi Stephen, Thank you. I think too many people have that attitude and it hurts them and their ability to reach high levels of success. Why does it bother you that someone else has that car? If you think anyone who has a nice car is a **** as you put it, then you are telling yourself you don’t want that level of success. I learned a long time ago not to hide what I want in life or what makes me happy. I also learned not to let other people determine what I like or dislike. FYI, people love the car and talk to me all about it. It has been incredible for business. And it was an incredible motivator.
I have no idea where you got the 200k number, but I agree people who make 200k probably should not buy a Lambo in most cases.
Thanks for a great Article !! Tell me what is the very furst thing to do to own 100 rental properties in 10 years ? What can I do TODAY to move one step forward ? Thank you !
That all depends on what you have done so far. Have you made a plan yet?
Good afternoon Mark,
I am 18 years old and am currently a student at UNC-Chapel Hill. I have gathered all of my savings and money together for use in investment properties and I plan to do exactly as you have done. Say I have $100k available to use for investing. From your expertise, what is the BEST way for me to start today. I am set on the idea and will use the snowball method to make payments. How many properties should I start with, what kind of mortgage should I use, how much should I leave in reserve, etc? If you could help me that would be much appreciated. I have been searching for an expert in the subject, but have no found anyone that would take an 18 year old seriously. I look forward to your response and I thank you very much in advance for your help. Also, if possible, it would be great if you could contact me by email: [email protected]
I will send you an email!
Can you email me more? Curious to begin sceptical at the same time.
What are you skeptical about?
Hi Mark, this is a great story and congratulations on your success! I am just starting in real estate investing and I am in my late 20s. I bought my house about 2 years ago and I just purchased my first rental here in Chicago last month. I plan to continue investing in real estate and acquire more rentals, but how can someone buy more than even 3 properties a year with an average annual income of 90K for instance? How do you find lenders willing to finance for all those deals you mentioned, and how do you hedge against the risk of possible delinquent tenants while you still have to make your debt obligations? I would truly apprecaite any adivce you have for a new real estate investor. My emial is: [email protected]
You plan for vacancies and there are many lenders around in today’s market. https://investfourmore.com/2013/03/05/how-to-finance-more-than-four-properties/
your plan is so inspiring! I do this kind of planing (I thought I am the only one slightly crazy like this lol)! But I have not implemented it and have only 4 properties, the total of about 1.7 mill. This inspires me to work harder and accomplish more. I need to study your plan carefully and see what I learn. Good job and keep going at it!
Hi Mark we owned 4 investment properties but then hit a wall with servicing. 1 of them is a great property (good capital growth and good yield). One was great capital gross but rubbish yield and the other 2 were pretty average. I have since sold the 3 lemons and have kept the good one. I have left paid employment and am trading property full time which I have discovered the banks don’t really like when it comes to lending me money. I have some good cash set aside to do my trading but I know its the hold properties that will make weather not the quick flips. Can you offer some advice for next steps. By the way I am not in USA but in New Zealand. Investment properties here require a 40% deposit.
weather = wealth 🙂
I don’t know much about other countries. I would focus on finding awesome deals that cash flow. If that is not possible, maybe look at other markets?
I currently have a business from home that provides me about $700k in net income a year. It’s a 1 man stay at home business, so I’m busy from morning until night. I purchased 3 properties in 2013 and 2014 in the Houston area in Texas. As you mentioned in a video, you said some people have no clue what they’re doing when they buy rental properties and sadly, I am one such example. I bought all 3 properties and while they’ve all gone up 35% in value over the past 2 – 3 years, their current value-rent ratio isn’t very good. I’ve also gotten some very bad tenants, and got myself thoroughly “burned”. I want to get into the rental property business like you have, and I’m just wondering if it’s a good idea to use my saved up cash from my business to buy rentals. Meaning, I want to skip the mortgage, lending process and straight up use my net income from my business to start investing in rental property?
I also just ordered your rental empire book on amazon, it’s about to arrive, and I can’t wait to dive in and read through it.
I just wanted to add that you inspired me to take night classes to become a residential real estate agent, I just enrolled in my local community college to do just that. I’m beginning from step 1 in the real estate business, so right now I’m taking the classes in hope of being able to browse and list on MLS.
I think you will make much more money using loans than cash. But, it is all about knowing how to get great deals with cash flow.
My fiance has a similar but condensed version of your plan. I am hesitant to have him purchase an investment property BEFORE purchasing our own single family dream home but he says it shows income to banks (with tenants already renting these properties upon purchase). I know I may have to admit I’m wrong but I’d love your feedback based on experience. He owns our house now which is a multi- and we live in one of the houses. We’ll rent out the whole thing when we move into a single. The rental market he is interested in is growing rapidly. Thanks for your feedback!
He is right. Make sure you don’t spend too much on your dream house or it will make it really tough to buy rentals. https://investfourmore.com/
Incredible article. I appreciate you coming back an updating some of your changes and findings. I will definitely be following your progress and growth Mark. I’m a new investor and a lot of this information have been helpful. I’ve been reading for 2 hours now. A couple questions: 1) Do you have a website where you market your properties? And, how has the direct marketing strategy paid off since ’14? 2) Would you advise a new investor to set up a structure and system (business cards, website, marketing strategy, etc) prior to purchasing the first property or jump right in?
1. I have a website for my real estate team fergusongreeley.com
2. I would jump right in
Hi Mark, this is a great blog and most importantly it reassures me on my plan. I have 11 rental properties and my plan was to have 50 properties in the next 5 years, however after reading this I too feel like I would be selling myself short or even worse taking the easy road. So I will have to reset my goals to a 101 properties in 10 years. I will be 44 at that time. I have my plan laid out on a spreadsheet and after showing it to 2 friends they got started by buying triplexes. You are right in this blog. It’s the way to go!
Thank you and nice work!!
Will 2017 be a carryover of a 2016 update?
I did not buy any rentals in 2016 🙁
Very very very exciting thing to read considering I’m 18 years old have been planning my life out since I was 14 lol. My goal is the same as yours except, I’m not familiar with the refinancing and things like that. In trucking, after 2 years of experience, I can easily pull in $100,000 a year soon as I get my own truck, I know people who’ve been driving trucks for over 20 years and they’re pulling in suprisely 300+ a year. I’m going to save for those 2 years and buy a truck to become an owner operator. My problem is, I have so many goals I want to accomplish. I want to retire at the age of at least 40 so in the time that I have now I want to accomplish starting up my own trucking company by buying 2+ trucks by the age of 25. Hire family members and friends that I know will work and not screw me over. Anywho, by the age of 25 I want to have at least 300 grand saved. I’m about to get my CDL, so I’m going to look around for dump truck positions and etc for now until I get of age to drive OTR big rigs. Here in Tennessee, I’ve been researching alot lately and there’s multiple houses for under 50 grand. I”m assuming they’re fixer uppers, either way it goes it seems like a good idea. There’s a house for sale for $10k. It needs work like the windows are boarded up, probably molded up. I can flip houses like that as well or rent them out. My goal is to have 1,000 houses by the time I hit 60. Do you think that’s impossible? Sorry my comment is all over the place, I can say so much about my future plans on investing in everything. Reason why I feel like I can reach 1,000 is because I’m going to be opening up dealerships, franchise restaurants probably, hopefully own at least 50 trucks by the age of 40. Trust me, I’m thinking very big and I want to be in my 60s with over 50 million. I’ve been doing a lot of (not the exact amount, but you know) and if I can reach 100 houses and let’s say I rent them all out for $650 a month, that’s $780,000 PLUS my income from my trucking business. So, over 1 million dollars a year pretty much. Due to financing, it won’t be my net, but I will be the techniques you were talking about. I just want to have all my properties paid off in my 60s. The more houses you get, the more income you bring in. Each year I’m hopping for my income to expand. If I can reach 250 houses then that could most def help me with buying a lot more than I’m use to. I want to have apartment buildings as well.. A LOT I WANT TO ACCOMPLISH lol, I’m only 18!!!! If I live to 80 (Like my grandma did) then that’s 62 years from now and in 20 years from now I will be 38.. That’s the age where I hope to have over 5 million. That number is a wild guess, I hope to have more. Nice article man, really helped me out a lot and opened my eyes. Even though, not sure if I can reach my 1,000 houses by age 60 goal, but hey I don’t see why not, that’s 42 years from now!
I currently own 4 properties in Toronto Canada. It is very difficult to find banks that will lend to you for more than 4 properties. Also with the additional liabilities, it makes it difficult to get approved for the next mortgage. Any ideas on how to get around this? How were you able to get mortgages for that many properties? Please advise. Thanks!
Why not invest in a 150 unit apartment complex if you’re going for cash flow? It may have more return per dollar spent on acquisition if you’re able to reduce operating costs. Thank you for your advice previously.
Multifamily is more expensive in my area compared to single family rentals based on the rent to value. Multifamily is crazy overpriced because of big investors paying cash for them and not caring as much about the return. I hear this is happening all over the country. I also like the diversification of having 100 different properties in different locations than one property. If something happens to that 150 unit property (meth lab, flood, etc) I lose all my income. I also think the tenants are higher quality in single family, they are less expenses (tenants pay more bills), and they take less cash for the initial investment.
Interesting lay out, its good to have a plan. looks like as i write this near the end of June 2017 you are a little off course of you goal, less than 6 years to buy what 80+ rentals yet? my plan is to have 25 by the time my youngest graduates high school in 6 years, and then pay them down like mad. I finance on 15 year amm. commercial notes. never finance more than 60% LTV on any one property, or no more than 40% LTV on the entire portfolio, this ensures my ability to re-up my notes. Even if the market drops 20% I still have 20% equity to refi single notes, as a cushion of equity in the event of bad times to buy when properties are “on sale” I recognize everyone’s dream is different, for me I need $100K/year to cover Healthcare and living expenses, and still travel, and enjoy life. I have no desire to live a high life, no heed for an expensive sports car (knock intended) as your Lambo could pay off several rentals of mine, and I can rent one if I really want to dive on for a weekend. But again we are free to choose out lifestyle, from my view expensive things prolong the time needed to build the empire. I hope you can get there, and I agree, rehabbing rentals takes a ton of money, I say its like a water truck of money backing up to the place you just purchased, you open the valve wide open at the beginning, and then refill with a trickle from the hose, but it never stops. Good Luck Bud!
Yes, I was not planning on housing prices doubling, which made it almost impossible to cash flow anymore. I have looked at other markets, but mostly been focusing on flipping and buying commercial properties now. We are all different and I learned a long time ago to go after what makes me happy, not what others say should make me happy. I love cars and have no regrets about buying them, especially after the Lambo doubled in value after I bought it.
This is great – I’m at 7 units right now and looking to get up to 10 in the next 2 years. I like the ideas for when you’ve hit your goal – WSOP would be pretty impressive but I think I’d be just as happy being able to golf all around the world and spend more time with the family!
We all have different goals!
would not it be better to buy a multifamily rental property for example 16 units.
you have them all together and it should be easier to handle and maintain
or some people and some areas. But you also add risk having all the units in one building and you may get a lower quality of tenant in apartments as opposed to houses
Great Article. I want to buy a rental property. I have few questions, Can you please answer?
Are all your rentals in same area?
Do you give it for property management or manage by yourself?
How do you manage these many properties?
What if job market goes down and not many people to rent? Your payments will be higher?
I am hearing now the prices gone up above a threshold that its very difficult to get positive cash flow in rental market. Is it true?
Do you recommend websites likes roofstock or Homeunion?
My rentals are all in the same area
I use a property manager
My rents are much higher than my payments and I can stand a drop in rents
That is true in some area, but in others you can still cash flow
About how much cash one needs to start a successful career in real estate business as you did? It will be really helpful to know from where to start to have such goals. Your articles are extremely motivating!
It depends on what you want to do, flip, rent, be an agent. It also depends on how hard you work and what sacrifices you make
Interesting read, was wondering if you could share some cities that have good rental potential. Purchase price vs projected rent?
I’m also in Colorado and opportunities seem to be narrowing.
Milwaukee, Midwest, some areas in Florida, Baltimore, Philly…
What do you think of Arizona? Thank you.
I do not know much about that market right now
I first found out about you when looking for a rental income book on Amazon. I signed for your newsletter and read almost daily your post and emails.
What stands out to me the most is your sincere, practical and candid approach.
Thank you for being you.
Great inspiring article. I’m at 12 houses. Prices now much higher than can be rented for so I been attacking my mortgages and investing back into houses to increase rents. I might have to do larger down payments 30-40% to get them to cash flow but I’m give it more time, upgrade current properties before going down that route.
I am 21, and a senior in college. I have had plans to invest in rental properties for as long as I can remember. My grandparents had 2 properties for about 15 years, so I have been able to ask them a few questions, but I haven’t been able to get a professional to respond/mentor me in rental property world. I have done countless of hours researching and reading people’s stories, so I would say I am on the right track to getting my first rental when I graduate. I know it’s a long shot, but I wanted to reach out to you and see if I could ask you a few questions sometime. It would be amazing to be mentored by someone who has been there done that. I’m not expecting you to walk me through everything, or spend a lot of time on me. It would just be nice to have a few questions answered here and there. I have read a lot of your posts, and I will continue to do so!
Thank you for the help you have already given me!
Yes, I answer emails all the time. [email protected]
Great article Mark.
It was really neat to see how your goals evolved or changed slightly over the years. Im experiencing the same thing, Ill set a goal and in a year I will tweek it a bit. The powerful thing was setting it though, because then that bar is set incredibly high. My cousin and I are shooting for 200 units in 5 years. Currently we are at 2 units, closing on a triplex next week and hoping to get a 18 unit under contract. 200 is so huge compared to where we are now, but I know we can get there eventually. And by setting that goal, it forces me to really make a game plan.
Thanks for sharing your goals and strategy, its really inspiring.
Thank you and good luck!