What do you guys think of my real estate investment goals and tentative acquisition plan?
Thanks!
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Goal
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Invest in 100 units of multifamily residential and commercial properties over the next 10 years (2008 - 2018) making at least one purchase every 2 years starting in 2008. The average net profit for the units will be $200 per unit with a net monthly income of $20,000 per month. Collectively, the units will increase at a conservative appreciation level of at least 6% annually.
Note: I am using S.M.A.R.T criteria for defining my goals.
Under this criteria, the goal must be Specific, Measurable, Actionable, Realistic,
and Time-based.
Reference: http://www.topachievement.com/smart.html
http://www.projectsmart.co.uk/smart-goals.html
http://en.wikipedia.org/wiki/SMART_(project_management)
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Plan
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I am still working on the details of my plan.
Generally, I plan to start out slowly acquiring properties every 2 years starting in 2008 with the purchase of a quadraplex. As I gain more knowledge and experience, I plan to add more properties. The 2 year wait period gives me an opportunity to stabilize my newly acquired property, increase appreciation using force appreciation (improve property and increase rents), allow inflation and demand appreciation to increase value, and equity to build up. The increase in value of my current property will be used to secure financing for next property.
Attached is projected schedule of acquisition.
Thanks!
**********************************************************************
Goal
**********************************************************************
Invest in 100 units of multifamily residential and commercial properties over the next 10 years (2008 - 2018) making at least one purchase every 2 years starting in 2008. The average net profit for the units will be $200 per unit with a net monthly income of $20,000 per month. Collectively, the units will increase at a conservative appreciation level of at least 6% annually.
Note: I am using S.M.A.R.T criteria for defining my goals.
Under this criteria, the goal must be Specific, Measurable, Actionable, Realistic,
and Time-based.
Reference: http://www.topachievement.com/smart.html
http://www.projectsmart.co.uk/smart-goals.html
http://en.wikipedia.org/wiki/SMART_(project_management)
**********************************************************************
Plan
**********************************************************************
I am still working on the details of my plan.
Generally, I plan to start out slowly acquiring properties every 2 years starting in 2008 with the purchase of a quadraplex. As I gain more knowledge and experience, I plan to add more properties. The 2 year wait period gives me an opportunity to stabilize my newly acquired property, increase appreciation using force appreciation (improve property and increase rents), allow inflation and demand appreciation to increase value, and equity to build up. The increase in value of my current property will be used to secure financing for next property.
Attached is projected schedule of acquisition.
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