7 Years to 6 Figures
This process all started with two books that I happened upon, “Rich Dad Poor Dad” by Robert Kiyosaki and “7 years to 7 figures” by Brandon Turner (#BiggerPockets). These books explore financial freedom and what it takes to achieve that goal. I created this blog to document the start of my real estate business and journey to financial freedom. Starting this venture has been a long time goal of mine, and it took exactly one year and ten months to finally get to the start of the race. The preparation process required research, saving, networking, analysis paralysis, and finally, a leap of faith to acquire my first property. I want to gain financial freedom through steady cash flow from the careful acquisition of five great properties. This blog will be my timeline and outline of everything, both the good and the bad, that will occur throughout the process of managing my first investment property, the acquisition of all subsequent properties and achieving financial freedom. This is my journey to six figures through real estate investments.
I acquired my first investment property today on Dec. 16, 2016. The property is a 3-unit, located in South Milwaukee.
The property was recently rehabbed with a brand new plumbing, electric mechanicals, furnace, water heaters, roof and siding. The property has an added bonus of being fully rented. The current profit breakdown of the property is as follows:
Unit 1 is a 2BR 1 Bath that is currently renting for $750/mo
Unit 2 is a 1 BR 1 Bath that is currently renting for $600/mo
Unit 3 is a 1 BR 1 Bath that is currently renting for $600/mo
Total monthly revenue of $1,950/mo
Principal and Interest Payment: $705/mo
Home Insurance Payment: $65/mo
Property Taxes: $356/mo
PMI: $111/mo
Water, Sewage, and Waste: $67/mo or $200/quarter
Shared Gas Utility: $105/mo
Total monthly expenses of $1,409/mo
After expenses the property will Cash Flow is $541/mo
I want to put aside at least $125/mo for emergency repairs and another $100/mo for routine maintenance.
so Cash flow will ultimately be $316/mo or $105/door.
I plan on taking this first year to research and learn the best ways to be a landlord, and how to most efficiently manage this property. My goal is to save the cash flow generated by the property and by the end of the year to develop a formula that I am able to replicate on subsequent properties that I plan on acquiring in the future. It has been a long process of putting together a plan, searching for a great deal and purchasing the property. As I look down at the two sets of keys in my hands I’m still in disbelief that this moment has finally arrived. While I would like to celebrate this milestone, I know the real work begins now.
I want this blog to be a point of encouragement for other people looking to also start down their own path. Anything is possible as long as you are open and willing to put your mind to work. For every problem that exists there is always a solution to find as long as you are willing to look for it. Stay encouraged! Happy Investing!
Josh
Comments (11)
Josh,
I'm on a similar track. It's been 18 months of plant the seed of thinking differently about money, determining where my skills were strongest to generate more "passive" income (though it's anything but passive), set up a business plan, LLC and bank accounts, creating a marketing strategy, talking and talking to the point I have some hard money or private lenders offering me their sentiments to be in on my deals and finally this week I am making 4 offers on properties! I'm a huge advocate of supporting beginners and learning from mentors. Good Luck - love the blog idea to show the reality of a newbie. No doubt you'll be wonderful at this new stage in life. Kim M.
Kim Martorana, almost 7 years ago
@Kim Martorana Hey Kim sorry for such a delay regarding your post but I think it is awesome you are taking the hard leap of faith down the real estate investing path! I would love to connect and stay in contact as both of us continue down our individual journeys!
Joshua R., over 6 years ago
Wooo hooo congrats! It's always great to hear more success stories, keeps the rest of us motivated.
Shasha Jhaveri, almost 7 years ago
@Shasha JhaveriI appreciate the kind words! Positive words and encouragement goes a long way. Please let me know if I can be of any help!
Joshua R., over 6 years ago
Best of luck with managing your first rental property! It's certainly a journey and you'll experience so many weird calls and excuses.
Thanks for sharing your story!
Lance Polvado, almost 7 years ago
@Lance Polvado Thank you very much! I welcome the challenge haha
Joshua R., almost 7 years ago
@Agnes Kamau It took me about a year to purchase my first property, but that is not to say it can be done in less time. I had a goal of purchasing my first property by my 24th birthday. The books I read to help me purchase my first property were:
7 years to 7 figures by @Brandon Turner
Rich Dad Poor Dad by Robert Kiyasaki
4 Hour Work Week by Tim Ferris
Beginners Ultimate Guide to Real Estate Investing by Bigger Pockets
BiggerPockets Blogs and Podcasts
I am still reading a lot to keep educating myself but these are the 4 books and BiggerPockets resources, that played a large role in arming me with the confidence and knowledge to pull the trigger on my first property. The best advice that I have to give is set a timeline for your goal and tell everyone about your goal. Give yourself a deadline and set small goals throughout your timeline. Every small goal you complete gets you closer to the bigger goal of closing on your first deal. Stay encouraged and motivated, road blocks will happen but always look for a solution to the issue. There is always a solution if you are willing to look for one!
Happy Investing!
Josh
Joshua R., almost 7 years ago
@Joshua R. Thanks, I truly appreciate your response!
Agnes Kamau, almost 7 years ago
@Peter Martucci Thank you very much for the kind words and encouragement! Taking the first leap is always the hardest. Education and analysis are both necessary to the process of purchasing a great property, but exactly as you said, action is most important and most difficult! But just stay motivated and you will get across the starting line!
Joshua R., almost 7 years ago
Josh,
That's awesome, you have taken the step that most of us don't take and that is the first one. I believe everyone thinks the first step is the education, but I would disagree. I have all the tools and resources at my disposal, but I haven't even crossed the starting line yet, because I haven't purchased my first property. That is my game plan when I get back to the states. Aggressively pursue my first property purchase.
Actually getting up to the starting line and going when the gun goes off is the hardest part. The education, the resources, the analyzation, are all relatively simple tasks. It takes heart and a drive to get you to the starting line. Congratulations! Don't take it lightly. There are a ton of us that are hoping we find the courage to do the same thing.
Thanks so much for your post, it really does help the rest of us!
Peter
Peter Martucci, almost 7 years ago
Congrats! What are some of the books/resources you used to research and how long did it take before you acquired the property? I'm currently reading and saving aggressively. I'll join my local REIA in the next few months. I plan on buying sometime next year, any tips?
Agnes Kamau, almost 7 years ago