How I replaced my jobs income in 2 years investing in real estate.
Hello My name is Russell and I am only 26 years old. I officially make the same amount of money in realestate that I make at my job. Did all this in 2 years with very little money out of pocket. That is passive incoome from rentals only I am not including flipping income.
How I did it?
First I started reading every real estate investing book out there, bought a bunch of courses and learned for about 3 months before starting.
I already owned a condo before I started that was my only property. Also I only had about 5k in the bank, but I did have good credit. First I sold my condo on a land contract received 10k down and cash flow of only 100 per month.
2nd I bought a 3 unit property with a partner, who put up all the down payment by using a Refinance of his own property. I got a mortgage in my name for the property. This property is currently cashflowing 1200 per month, half of that is mine 600 per month. Please note all these figures are after all expenses and repairs.
3rd property did another 3 unit building got another loan with my name on it, also used the same partner who came up with half for down payment. I also had to come up with 20k for down payment. So I borrowed 20k from family and gave them 10 perent interest on their money back. This property is great we have been profiting 1400 per month every month. 700 per month for me. Also the 20k I borrowed was paid back by using my income from my job.
4rth property found a great 4 unit building. This time my parents saw how great I was doing financially they decided to jump in. My name did not go on this loan. Just under my moms name. Down payment for this one came from my parents. I agreed to handle all of the property management This property is cashflowing at 1700 per month, my half 850 per month.
5th property did with another 3 unit partner. The loan for this one is in my name. This is my 4rth loan in my name. My partner agreed to come up with down payment. I handled all property management of the buidling, and we split cashflow 50/50. Total cashflow 1100 per month, my profit 550 per month.
So here are the numbers
1st condo profited 10k down, and 100 per month
2nd 3 unit 600
3rd 4 unit 700
4rth 3 unit 850
5th 3 uniit 550
equals 2,800 per month
I am not done yet. I sold my expensive Mercedes Benz and bought a cheaper car pocketed about 10k. I cashed out my 401k and IRAs, I know not to smart but I did something better got 40k from that. So I had total of 50k cash to invest
I bought 2 condos I bought for cash Currenly rehabbing both of them and I am gonig to hold these 2 as well. They will profit about 500 per month each condo.
So total passive income from rentals will be 3800 per month. I know this is not alot of money to mostof you but too me just to be able to repalce my current income is a huge accomplishment.
BeforeI quit my job I want to have enough cash reserves for 1 year of income and passive rental income to double my jobs income. I did all this in 2 years.
Just wanted to share my success story.