HBS 2014 Goals Break Down

Hyner 2012 (Start)

Yes, this was the start of the 2012 Hyner View Trail Challenge (that’s why I’m smiling…).  I figured a quick break down of the 2014 Goals for HBS.

1) Increase cash flow by $1,000/month (forward looking cash flow) – With the five units I currently own (Two duplexes and one SFH), I ‘profit’ approximately $950 per month (I am not paying for property management).  All of the ‘profit’ is currently being reinvested in HBS.  By the end of 2014, I want to increase the profit to $2,000 per month.  Ideally, I would work on this goal in bits and pieces, purchasing one property per quarter that cash flows $3,000 annually.  However, I would still meet the goal if I were to purchase one property on December 31, 2014 that cash flows $12,000/year.  In addition, I could purchase properties that are rented at under-market rent, if I think I could raise the rents to the $3,000/quarter threshold.

2) Purchase a minimum of 3 additional rental properties – I plan to add a minimum of three properties to my current portfolio.  I think I will actually have to add more than three properties if I want to meet Goal #1 above.  I anticipate that I will more than double the number of units HBS owns this year.

3) Use unique financing on at least one deal this year – This comes from the REI class I’m taking right now: Cash Flow Freedom University by Ben Leybovich.  Ben advocates finding properties that offer unique financing opportunities.  One property I am considering purchasing is a duplex, owned by the same owner since the mid-90’s.  The owner paid off the mortgage in 2013.  Because there is no mortgage, the owner could hypothetically offer 100% financing for the deal.

4) Leverage an additional $200,000 – This is simply how much additional ‘debt’ I want to carry by the end of this year.  I am earning approximately 11% on my leveraged cash.  If I continue this earning streak, I would earn approximately $1,830/month if I were to leverage a total of $200,000.  This would crush Goal #1.

5) Locate a headquarters for HBS – Honestly, my garage is full of tools and materials I need for HBS.  I would like to locate the materials and tools in a larger space so I could have some space to fabricate custom pieces if needed (also, I have a few friends who could use some large shop space).  In addition, my wife has requested that I convert my HBS storage area to a craft room.  I would like to have a dedicated craft/painting/sewing/candle making area.  If I can locate a headquarters (don’t need to purchase in 2014), that would be an excellent step towards our craft room.

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