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10 Properties at $200 Each or 4 Properties at $400 Each
Episode 343Bonus Episode3rd May 2022 • Real Estate Investing with the REI Mastermind Network • REI Mastermind Network | Real Estate Investing
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Would you rather have 10 properties cash flowing $200 per month or 5 properties producing $400 per month. Jack's answer may surprise you.

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"You can invest 10,000 hours and become an expert or learn from those who have already made that investment." - Jack

Transcripts

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Welcome to the REI Mastermind network, where host Jack has gathers amazing stories from leaders in real estate investing.

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In each episode, our guests will tell you what they're doing that works what they've tried that failed, and best of all, you'll learn actionable steps to take your real estate investing to the next level now, here's Jack with another value packed episode.

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Hey everyone, it is Jack with another tip Tuesday, and I wanted to take a second and thank you for tuning into the REI Mastermind Network.

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And this question comes from Twitter, and somebody recently posted, and I thought it was an interesting exercise. Would you rather have 10 properties that cash flow at 200 each, or five properties that cash flow at 400 each? And I think my answer is probably going to surprise you. Or maybe it.

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It won't after.

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You've listened to me a few times, but I'm going to go with the five properties at 400 each, and I'm going to explain why a lot of people are going to say 10 because of the being able to build that portfolio in the equity, but I'm going to make the argument that.

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8 is frankly just too expensive. If you have 10 properties, cash flowing $200 each first of all that would.

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It wouldn't meet the mustard when it comes to my investing guidelines. I would want at least $400 per door. And frankly, when you have that capital sitting in those properties.

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Those low producing property.

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You are losing out on a bunch of opportunity, so because of the cost of that missed opportunity, I frankly would be patient and continue to look for that 5th, 6th, 7th property that is producing the level of cash flow that I would be looking for.

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The other thing that I would say is that.

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You need to make.

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Sure, you establish those no go triggers during this process, and that happens to be one of my no go triggers.

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If its cash flowing at $200, it's something that I wouldn't even consider, so keep that in mind be paid.

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ything goes out, that's only $:

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It goes out.

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The air conditioner goes out.

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You have roof issues.

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That's just not enough money. That's not enough cash flow to cover what you need to cover, so assess. I think you really need to be thinking of that three $400 even higher in order to make sure you can cover those expenses. And then frankly, if you're self-managing a big one, that's just.

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On the face of it is that I would frankly rather manage 5 tenants versus 10 tenants.

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And at $400, a door versus $200 a door, you can tell what's going to be worth your time.

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I hope that makes sense. That's my thoughts anyway. If you disagree with me, why don't you shoot me a quick email? Head over to REI mastermind.net@gmail.com would love to hear your feedback.

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If you wouldn't mind doing me a favor if you think, there's some value here in what I was saying.

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Why don't you share it with somebody that you know that's getting into real estate investing?

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It might help them in the process so well.

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I hope to see you next time we'll talk to you then.

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Have you learned at least one actionable step to incorporate into your real estate investing?

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If so, please consider returning some of that value by leaving a positive review, subscribing to our YouTube channel, or joining our growing network on Facebook and Twitter.

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You can find links to all of our social media accounts in the show notes.

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See you next time.