OK, so I already got a couple inquiries about being a millionaire in 15 years lol.....
I'll do a short post about this, you need good credit, a little dp capitol {years ago you could do with out any start-up money, but that is changed now}, and being handy helps...
Alright so a lot of people started to lose there homes years back, this created a unique opportunity, houses were cheap, loans were cheap, and people need places to live...
So for round numbers say you buy 10 houses each with 2 apartments for $100K each. Your total monthly payments will be around $800 per property {15 year fixed}{depending on interest rate, tax rate, insurance rate, down payment, ect} now if you collect $700 per apartment in a perfect world you make $600 a month times 10 apartments times 12 months that is $72,000 per year, but here is what you do with that $72,000 at the end of the year after you pay all the upkeep, income tax, missed months of rent, ect ect ect say you have $38K left, you dump 75% of that back into the mortgages, and after the second year you will know what a good safety net is for an account balance, so you can dump the rest back into them mortgages, year after year you do this and you will end up paying these houses off in 10 years with just mediocre luck... Now you have 10 paid off properties making you $170K gross and all you have to pay is taxes, upkeep, and insurance... OR sell them, you should see 5% per year over your initial cost {give or take 5% in this economy, lol}....
So there it is A million free dollars in 15 years... I didn't buy all my property at once, I own over 20 {not counting my commercial stuff and the home I occupy} some of them with up to 7 units in each, most are paid in full already but all will be paid off in the next handful of years... I know a couple others that do the same thing and I always worked my normal job, this is totally separate and I don't really take money from it as income, I reinvest 100% of it since my company and my wife's job take care of us and our normal investments...
Its smart to start slow, start with 1 duplex, then see how it works, I am going to be closing on a property soon, a 2 story 3 family for $78K, needs around $40K invested after purchase to bring it up to my property standards {I will do porcelain tile and 3/4 oak flooring throughout the entire place, new hvac, new plumbing, and electrical, granite in the kitchen and baths, new doors, and locks {this house already has new windows}, new paint, and this house needs some plaster and a roof}. The house will take 3 months from closing to occupied, I am going to be around $1000, $1000, and $700 for the rents, the down payment {closing costs, and money down} will be $33K. That and the money to bring it back to life will come out of my real estate co. and in 3 months this property will be depositing $2700 per month back into the company!!! But I have the means to get something like this done and fast, without hiring a lot of outside help, my real estate co pays my contracting co to do the work...
Anyway that is it in a nutshell, if you have the time and know how its a good way to retire early or with a live a little more comfy.. I don't recommend it as a full time job although it can feel that way sometimes, because then instead of building itself it is supporting you, work your regular job and let this work for you....
