What a crazy business. Hemorrhaging cash, but feeling positive!

What a crazy business. Hemorrhaging cash, but feeling positive!

Rental Property Investor · Bethalto, IL · Member since 2014 · 319 posts · 103 votes

For the money that my wife and I have spent in the past two months, I could have bought a brand new truck, or bought a the camper that we have wanted for a long time.  Or an awesome hot tub, which would make my back problems feel so much better.  Some of our family and friends are taking week long "fancy" vacations, and we having money flying out of our pockets in multiple directions without leaving our home.  My wife and I are focusing on our future, and looking forward to the delayed gratification in a few years.  I just wanted to let all of the new investors know that this business really is worth it, and that one day the rewards will be greater than you can imagine.  

In the past two months: we spent $9,200 rehabbing an apartment after a tenant left us with a disaster of a unit, bought another property for $55,000(9k down payment), are currently rehabbing that property which is going to run us around $8,500, and last night we had a refrigerator pass away that we have to replace tonight(probably around $400-500 thanks to the Memorial Day sales).  So we have spent over $26,000.00 in the past two months.  I would have laughed at you two years ago if you would have asked me if we could pull something like that off.  We are not rich by any stretch of the imagination.  Out of all my friends in my age group(34) I would estimate that we are slightly above average here in the Midwest.  We have been frugal, and have not spent a dime of our rental income in the past two years.  That money, along with paying ourselves first from our W2 paychecks has really helped us grow, and we are finally starting to see the snowball gain some size.

We have been investing for right at two years now, have 3 properties(6 units--a four-plex and 2 SFR). Our currently yearly gross cash flow totals are(once this current property is finished with the renovation and rented out): $43,000.00-ish depending on some laundry income. I wish this was the net amount, but we are getting there! Stay focused, stay positive, and work hard. If you can do all three of these things, you will be right along side of us, heading towards our financial freedom!

Keep your heads up, and stay thirsty my friends!

Happy Memorial Day to everyone,

DJ and Erin Cummins

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Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
9y

Yes as you get older you start seeing father time down the road closer in the distance! lol

Saving is good but perspective changes as you get older.

The way I imagine things is I am on a long road. To the right and the left of the road are choices with memories I have made to take with me in life as I age. If the choice was to work all the time then getting toward the end of life waiting to enjoy it the time left is not enough to do most of what many people would like.

Tomorrow is not promised for anyone so enjoy the present.

I used to just focus on returns but these days the question I ask myself daily is .... Am I loving who I want to love? Am I happy and passionate about what I do? Am I working with clients,people with partnerships, and businesses who I respect and I am in alignment with?

There are tons of ways to grow money but balance and quality of life are key and having fun with the daily journey.

I know many people who are old and accumulated lot's of money. They have limited time and mobility to enjoy it. So plan for tomorrow but definitely live for and enjoy today within reason. It might not work for everyone but is at least my mantra.

DJ you might want to look into the book by David Krulac titled (How I made started with nothing and made 12 million in real-estate part time). He focuses on tax sales.     

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  • Rental Property Investor · Scottsdale, AZ · Member since 2017 · 116 posts · 136 votes
    9y

    Hey @DJ Cummins,  love the description of the refrigerator "passing away"!   Sounds like you are focused on your long-term goal and staying the course.  What type of properties are you looking for next in moving closer to financial independence? 

  • Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
    9y

    @DJ Cummins,

    Great work! Hang in there!

    ... and remember to ask your tax accountant about loss carry-forward to see if you can use those expenditures to offset future income.

  • Rental Property Investor · Bethalto, IL · Member since 2014 · 319 posts · 103 votes
    9y
    Originally posted by @Nichole Stohler:

    Hey @DJ Cummins,  love the description of the refrigerator "passing away"!   Sounds like you are focused on your long-term goal and staying the course.  What type of properties are you looking for next in moving closer to financial independence? 

     Hi Nichole,

    We aren't really dead set on any  type of property,  we are kust planning to pull thr trigger when something catches our eye.

    In the four or five towns that we are focused on, i would say that less than 5% of the options are small multi family.  We live the income our 4 unit produces, but the are much harder to find(at a good price).  That also means that its tougher to find good comps, so it is not as easy to pull out equity.   In our 2 sfrs we have been able to cosmetically add 10-15k in equity in each property.  Im leaning towards another sfr, but im ready for anything!

  • Rental Property Investor · Bethalto, IL · Member since 2014 · 319 posts · 103 votes
    9y
    Originally posted by @David Dachtera:

    @DJ Cummins,

    Great work! Hang in there!

    ... and remember to ask your tax accountant about loss carry-forward to see if you can use those expenditures to offset future income.

     Thanks @david!  Yes, the rehab from the apartment should all be a good tax deduction, so hopefully uncle sam gives us a few bucks back next year!

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    good work keep it up.. but do stop to smell the roses... along the way...

  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    9y

    Yes as you get older you start seeing father time down the road closer in the distance! lol

    Saving is good but perspective changes as you get older.

    The way I imagine things is I am on a long road. To the right and the left of the road are choices with memories I have made to take with me in life as I age. If the choice was to work all the time then getting toward the end of life waiting to enjoy it the time left is not enough to do most of what many people would like.

    Tomorrow is not promised for anyone so enjoy the present.

    I used to just focus on returns but these days the question I ask myself daily is .... Am I loving who I want to love? Am I happy and passionate about what I do? Am I working with clients,people with partnerships, and businesses who I respect and I am in alignment with?

    There are tons of ways to grow money but balance and quality of life are key and having fun with the daily journey.

    I know many people who are old and accumulated lot's of money. They have limited time and mobility to enjoy it. So plan for tomorrow but definitely live for and enjoy today within reason. It might not work for everyone but is at least my mantra.

    DJ you might want to look into the book by David Krulac titled (How I made started with nothing and made 12 million in real-estate part time). He focuses on tax sales.     

  • Rental Property Investor · Bethalto, IL · Member since 2014 · 319 posts · 103 votes
    9y
    Originally posted by @Jay Hinrichs:

    good work keep it up.. but do stop to smell the roses... along the way...

     Thanks Jay.  I always enjoy reading your posts.  We still enjoy plenty of things in life,  we are just not doing it with the flashy toys that our friends have. Lol

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