Real Estate - system example
My system is probably the most boring one I've come across:
-focus on about 10 neighborhoods in my city
-constantly scan the paper and other marketing avenues to know what the house for sale and rental markets are like
-constantly monitor developments in different neighborhoods, like new hospitals, demolition of housing projects, new shopping centers, etc.
-scan MLS, FSBOs, internet sites constantly, looking for properties that can get a 20% or higher COC at a reasonable discount from their list price
-have real estate agents that will work with me quickly to get in to see a place and put together an offer
-repeat all these steps to accumulate positive cashflow (20+% COC) rentals that I manage myself
-in a 3-7 year timeframe, move each property to management under a competent property manager, maintaining the ++cashflow
-accumulate enough properties in this method until rental income exceeds my standard living expenses by 20-25%, at which point i can do what I want
At this point I have 3 properties. I bought my first last September, second this May, and third this July. The first was a turnkey duplex that I united into a beautiful SFH and rent out. The second required remodeling...electrical, carpet, paint, minor plumbing, door framing, plaster, drywall. The third is a 3-unit that I live in and have one of the other 2 units rented out. The third unit in it will be my guinea pig to learn how to do tile and some electrical work.
My system is probably the most boring one I've come across:
-focus on about 10 neighborhoods in my city
-constantly scan the paper and other marketing avenues to know what the house for sale and rental markets are like
-constantly monitor developments in different neighborhoods, like new hospitals, demolition of housing projects, new shopping centers, etc.
-scan MLS, FSBOs, internet sites constantly, looking for properties that can get a 20% or higher COC at a reasonable discount from their list price
-have real estate agents that will work with me quickly to get in to see a place and put together an offer
-repeat all these steps to accumulate positive cashflow (20+% COC) rentals that I manage myself
-in a 3-7 year timeframe, move each property to management under a competent property manager, maintaining the ++cashflow
-accumulate enough properties in this method until rental income exceeds my standard living expenses by 20-25%, at which point i can do what I want
At this point I have 3 properties. I bought my first last September, second this May, and third this July. The first was a turnkey duplex that I united into a beautiful SFH and rent out. The second required remodeling...electrical, carpet, paint, minor plumbing, door framing, plaster, drywall. The third is a 3-unit that I live in and have one of the other 2 units rented out. The third unit in it will be my guinea pig to learn how to do tile and some electrical work.
