@Todd Powell congratulations, it sounds like it's been a long road with plenty of trial and error! Not sure what you do for W2 work, but could you leave that job and consult/freelance in whatever field you're in to have things more on your terms from a schedule perspective?
You could double that $3000/mo by doing real estate private lending and/or grow the principle. My ultimate goal is to be the bank which is what private lending provides you.
Ok.... what about this approach:
Buy more properties. Perhaps up to $300,000 more of down payments and have even more cash flow.
Sell some of what you have rehabbed before it needs anything fixed again so the new roofs/new HVAC's will be on someone else. You should have raised your value significantly with the rehab by raising the rents.
Add storage and/or gyms to raise rent. Gyms and storage are pretty cheap actually if you have a larger complex and space. Space for either can fit under staircases, etc.
Do a 1031 move over into new properties using your old money as the down payments for the new properties and I would expect your cash flow to skyrocket.
Make sure to leave room to supplement Medicare. Perhaps put your own utilities on some form of renewable energy to cut monthly costs long term if you have a larger home.
Have you talked to your wife? Would she be reasonable about it? Would she stick to a budget?
Could you modify your work to open your own business to supplement your current cash flow? Are you putting any of your current cash flow back into your real estate?
@Paul Ellis I will not poke holes in your strategies, as I can understand owning less units while trying to owe less. You will have less headaches with less tenants for sure, but I believe in good debt. By no means, am I a high risk high leverage guy. I just do not believe in Dave’s thoughts as a RE investor. He would have cost me tons of money. You make money on RE over time, no waiting to save cash for purchases makes zero sense to me. Hey, there are lots of ways to make money, so whatever works for you is awesome ! Best of luck
@NaDean Bowles lots of thoughts here I had never considered. Thanks
I always wanted to know how much someone else held in their 401K. Thanks for sharing
The program is great for people to follow when they don’t know how to use their money and leverage debt like a weapon as opposed to noose
@Todd Powell this great! Thanks so much for sharing. I am about 10 years behind you. I turn 43 tomorrow but my plan is to have enough passive cash flow by the time I’m 53 to have choices (like you have now). I may want to keep working or I may want to go RE Professional at that point but either way I want time to play with grandkids, to travel and to enjoy life while I’m still healthy enough to do it.
I see so many people who wait until 65 to retire and by then they can’t get around well enough to do what they’ve always dreamed of or they have a spouse with serious medical problems that can’t go anywhere. I don’t want to be in that boat and I certainly want my kids to have better options than that. Thanks for the inspiration!
Very inspiring post, especially for a RE Investor newbie like myself! I love that you were able to accomplish so much with your son as well. As my kids grow older, I look forward to sharing similar experiences. Congrats on your success!
@Todd Powell . Congratulations Mr. Powel, it is so refreshing on hearing the success stories sometimes, as all the negatives wear me down sometimes. You have gave such a accurate account of the business . I accumulated 104 properties that are paid for putting every dime in to it , and worked very hard full time doing all the rehab just with a couple of employees. I was so focused on no debt , I have all these properties , but not enough cash , as I do not want to borrow, as debt scares me. Now I am ready to retire I do not feel secure enough finically just with the income coming in . I know I am crying with a mouth full , also I just finished so it will take a little while to recoup . Your story reminds people that it is possible but not easy. Thanks for your story and the best of luck (lol)
@Glidden Rivera bingo!
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