OfflineI had someone ask me if it were possible to retire with $100K in Minneapolis: My answer was absolutely, but you would need to use the $100K for down payments and get financing on the rest and be very selective on the rentals you purchase. Twin cities is a good market, but taxes are a little higher and there is less govt subsidized housing as there is in OH, MO and IL. The key would be to find properties that you could get for <$40K that are rented for >$800-$1000/month and use the $100K to put 20-30% Down and buy 10 of them that would NET you $400-$500/month each after all costs.
Hope this helps!
Dave
__________________
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
I like this article because it is a simple plan and to the point. $100K invested in 10 properties; $10K in each property. That is a simply formula of putting 25% down on a $40K property and financing the rest with a conventional loan at no more than 5% interest. If rent is $900/mo the figures would be as follows:
Gross rents 900/mo = $10,800 annually
Expense: Tax: 1,000
Insurance: 800
Management fee: 1,080
Maintenance: 540
Vacancy factor: 1,080
Net annual rent: $6,300
Mortgage Payments: 1,932
Total income: $4,368
Times 10 properties = $43,680 annually
Total ROI = 43.7% on a $100K investment