It doesn’t seem like most EAs are interested in real estate investing (REI). Besides more riskier day trading, entrepreneurship and playing the lotto, REI done right garners significantly higher returns (think 20% and up, excluding equity, appreciation, depreciation recapture and capital gains).
I focus on the cash on cash, CoC, return (REI without equity) when analyzing potential investment properties, and make goals with cash flow (e.g., net $300/mo per property after at least 20% CoC return). My current goal is to attain $10k/mo cash flow within 12 years (again, after at least 20% CoC with most doors under anther’s management).
I use spreadsheets with PMT and IRR calculations, then double check with the DealCheck app/website. So far I only have one investment property, but I’m always going to open houses and analyzing potential deals. Self-storage seems to be booming. I’ll probably eventually get more into commercial too.
Anyway, I haven’t seen much interest in REI in the EA community—despite higher returns. So I’m a bit perplexed. But the other half of me doesn’t care and just wants to find a mentor.
Anyone interested in real estate investing want to potentially be my mentor?
I was thinking we would eventually talk on the phone maybe twice a month.
I am a young electrical engineer, childfree, in Wisconsin. I’m plant based at home; try to eat vegan when going out to eat, but usually end up eating vegetarian. I used to donate 1% in college (per GiveWell’s student pledge), but since then I’m more focused on end of life donation (Earning to Give). Or maybe I should set up a trust or something.
I am analytical and resourceful. I am refining my cash on cash return and cash flow calculations for REI. I own a duplex, and should sell when I move to a bigger city (probably in 2023). For prospective properties, I have analyzed some deals in Milwaukee and Chicago. Although, I should find a web crawler/scraper on GitHub to automatically extract this information into a spreadsheet.