How to get 10k cash flow? 35 rentals in San Diego

“My units cash flow between $250-$350/door and the total cash flow of the portfolio is about $10-11k/month (accounting for vacancies as well). My average COC return at purchase is about 15% and long-term IRR is 20%+.”

Prop 10 will eat your 10k cashflow for lunch. Hmm… yummy. :yum:

He has 28 units in Kansas City, well hedges against Prop 10

BlockquoteMy portfolio consists of 35 total units, mostly 4-plexes, with a duplex and some SFRs sprinkled here and there. 3 units in San Diego, 1 in Atlanta, 3 in Birmingham, 28 in Kansas City.

He will be okay.

managing 35 rentals is a full time job. Is he including his own cost while calculating the returns.

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I’m more interested in the total value of his 35 units combined.

Maybe he has no college education, joined Navy.

“What really helped is maximizing my income from my full-time job and side-business. I went from being active duty in the Navy (around $40k/year) to senior front-end engineer (around $150k/year) and running a profitable startup (another $150k/year) in a few years.”

“And what I came up with is a realization that I should treat this whole operation as a business, instead of just passive investing. So I focused on 2 things - building a network and a team of professionals to help me (property managers, agents, lenders, mortgage brokers, insurance guys, etc.); and training/teaching them to basically do most of the work for me.

The biggest challenge of owning this many units, especially all over the country is management. I never self-managed a single property. I have always used property managers and over time developed a set of criteria for picking them, and a system for keeping them accountable.

I don’t get into day-to-day operations, but I basically groom each of my property managers to do the job for me in a way where I’m satisfied. It takes some work up front, but overtime pays off big time, as mutual trust and understand develops.”

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He is propmoting his startup in a way not too annoying

“Anton Ivanov
DealCheck - RE Analysis

Not very clear if he has a full time job or whether this is his full time gig. I personally dont see how he can manage 35 rental properties without putting substantial time.

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Yes, he works full time as a senior front end engineer. Also has business in addition to his rentals.

senior front-end engineer (around $150k/year) and running a profitable startup (another $150k/year) in a few years.

This guy gets the right idea. In any case, his startup is not targeting at rich Bay Area landlords.

For cheap units in Kansas and such depreciation is a real expense. If you buy a house for 50k the value of that house will go to zero in 30 years meaning the yearly maintenance will be more than 1/30 of 50k.

This guy has it backward. He has lots of income it seems so he should shoot for appreciation not cashflow.

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Hey guys,

Late to the party, but i’m the OP in the originally linked post, so thought I’d answer any questions you may still have. Some of the unanswered ones:

  • I don’t manage any of my properties, they all have PM’s in place. I work full-time in other ventures
  • The total value of my portfolio is around $4mil right now.



That would mean 3% cashflow, not bad.

Just so it’s clear - that’s the total property value, not the value of my equity. Equity is about $1.4mil.

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Are your rentals concentrated in Kansas City? Where do you see new opportunities today?

@hanera Did you ever consider buying multi-fam in Austin? I think one big advantage buying out of Bay Area is buying multi-fam. Lower price point and less regulations aka rent control. Couple that with a growing tech hub could be powerful, no?

No mf because of tenant profile.