Can anyone share their experience on how they get a positive cash flow on rental properties? Bonus points if it replaces your income.

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Buy a primary resident late in 2019 at 2.125%, live there for the first part of Covid, then as the rental market explodes, move out and rent it out for $1000 over PITI etc. Repeat.

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Finding cash flowing properties just takes time and dedication to keep on searching for a property. The market has shifted a lot the last year and half. It’s not like pre COVID where you could basically pick any duplex and you will cash flow. It going to be a lot harder to do in this market, but still possible.

To your second question, to have enough cash flows from rental to replace your income will take a long time. Let’s say you make 100k, and your first rental nets 5k a year. That means just to produce the same income you will need 20 properties. That being said, I probably wouldn’t feel comfortable giving up my job at 20, since if we are being honest income from properties while it can be passive, it’s not as stable as a W2 job. On top of that, you have to factor in that at any given year, you could have a big unforeseen capital expense, think tree falls on roof, and you will have to dedicate a portion of what you thought was you take home pay to repairs, which can/will intrude on your lifestyle. So in my opinion, for me to give up my job I would need to produce 1.5x to 2x my income before I quit my job.

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I used an FHA (3.5% down) loan on a $330k duplex at 4.2% in New Orleans that cash flows $1700-$2000 via STR method (mortgage payment of about $2300). I just decorated the bottom extremely well and it stays booked on Airbnb. After the first year I moved out and now I can rent out the top and bottom. Just gotta search the listings and do the math for what makes sense for you. Figure out:

-How much can you realistically shell out (down payment + closing costs)
-given that lump sum, what house can you afford if you want to do 3.5%, 10%, or 20%
-shop around for the lowest interest rates possible
-what will the TOTAL monthly payment be at that interest rate (mortgage, insurance, tax, mortgage tax, etc)
-search comparable rents OR model out the STR metrics if you feel like going that route (you may need a permit)
-if the comparable rents or amount you can make via STR is higher than your all in recurring monthly payments then you are good to go. I would buy immediately

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I bought a short term rental in 2020 that was netting $2-3k per month. Ended up selling it last year for 2.5x what I paid.

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What market?

My parents are accidental landlords as they turned their first home into a rental and the rent was more than the mortgage. I used to find deals on the MLS and would just run the numbers for a 20% down payment loan and compare to the rental rates and if I have positive cash flow then I’ll buy it. You can also have positive cash flow if you increase your down payment or pay in cash. I think you also need to look at cash on cash return in addition to cash flow.

It’s a function of purchase price. You need a bargain purchase. Good luck with the 60 year mortgages jacking up prices

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פיטורים וכאלה:
סתם מסקרנות - האם יש פיטורים אצלכם בחברה?
אני אתחיל: רישמית אין פיטורים אצל Accenture אבל בפועל בשבועיים האחרונים היה ליל סכינים ארוכות בחסות העובדה שהיה שקט לפני דיווח רבעון והעובדה שכולם עובדים מהבית כך שאי אפשר לשים לב שמישהו נעלם.
בקרוב יש שיחות ביצועים והנחת היסוד ש10% התחתונים הולכים הביתה.
אבל רישמית "אין פיטורים".
מה אצלכם?

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