$500k to Invest, What Would You Do?

Investor · Austin TX · Member since 2021 · 49 posts · 26 votes

Hi All!

I've been investing for 5 years, combo of BRRRR, Airbnb, and flips, near me and out of state. I listen to podcasts and read books and have absorbed a ton of information over the years, so I'm familiar with numerous strategies, at least in concept. This year, I'm partnering with my sister, who is in a miserable corporate job taking her nowhere. But she has the W2 income and around $500k cash she's able to deploy towards our goal, which is to reach 'financial freedom' in 5-10 years. For me, that looks like around $15k/month income (and I'm starting from very little- long story). I have her figuring out her FI number, it's going to be a lot more than mine, but she also has a substantial 401k. So I'm thinking a good target will be around $30k/month to replace both of our incomes and live how we want to live, respectively.

We both live in MI and my current plan is to invest in single- and multi-family in solid, path-of-progress neighborhoods in metro Detroit, and also get some larger SFH's in the more expensive market where we live and do rent-by-the-room/co-living. We have a very severe affordable housing issue here! We are both committed to re-investing any cash flow back into the asset to snowball equity as quickly as possible. I like MI because of our climate, which is relatively stable compared to much of the country. I think our cooler climate and fresh water resources are going to attract a lot of population in coming years, especially as CA/FL become impossibly expensive for many people.

I'd love feedback and advice from those of you who are well ahead of me. I've resisted long term rentals, but am finally accepting that this is the most boring but solid way to create wealth. I am definitely focused on appreciation over cash flow. I am planning to BRRRR in DET and do turn-key up here as we are so short on labor. Are there other pathways I should consider, based on my goals and experience? I'm going to be doing all the research and execution, and I would self-manage the co-living at least the 1st year or two to learn it. Regular LTR's in DET would be fully managed. I love doing flips but I don't often see enough spread in DET and again, labor is too scarce up here to make it viable. It's exciting to have capital, I just want to be very careful and strategic. Thanks in advance for any insight!

5 Reply

83 views

Most Popular Reply

Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

Quote from @Jeremy Horton:

I'd be tempted into doing an STR (maybe with a higher down payment to ensure cashflow, just run ROI numbers) or an apartment complex - I personally wouldn't mess w/ small stuff. Even developing a mobile home park, affordable townhomes or self storage.

A "miserable corporate job to no where" isn't all that bad - health insurance benefits, 401k matching, probably some sort of discount stock purchase plan, stability, lenders like it. Sounds like she has a good W2.

Netting 30k/month isn't a small feat - especially without putting in consistent work. You really need a business or a commercial asset in my opinion - contractor bays, oil change type centers -something that everyone uses. Think if one house grosses 1k/month, then it may net say $500/month (after maintenance/repairs, CapEx). You're asking for 30k month - that's 60 of those houses...in a few years. Not saying it's impossible, but that is a full fledged business. You really need an infrastructure to run something like that - systems, people...and you have to keep it going.

Also - if you invest that 500k in an S&P 500 tracker - you'll average 8%/year - 40k. Not too shabby for literally 0 work or thought.

I would also take a look at your expenses - 15k/month in Michigan? Is it really that HCOL of an area? 15k/month = 180k/year. FIRE would essentially be pulling 4% a year so she needs around 4.5mm. The two of you together at 30k/month = 9mm. I think you'll need some time to get to that number, honestly.

The other serious honest question you have to ask yourself (you're wanting in invest a lot of capital - and your sister's at that) - how successful have you been in RE? What do your yearly numbers look like? What's your overall ROI and cashflow? Have you been more or less successful than you predicted? Why?

I find it ironic how people categorize their no where corporate job then say that job has created this wealth for them and security.. Also I find it kind of humerus were 15 years ago when i joined BP the FI number was 5k to many up to 10k now its 15k and up.. ( which is realistic in my mind I never thought 5k was realistic. Getting to 30k or more a month on NET NET cash flow takes a boat load of capital or you need to be in the transactional side of the industry.

Podcast Guest on Show #222

JLH Capital Partners51 Review

Website View Page

7 Reply

See this reply in the discussion

29 Replies

Jump to latestLatest

Sort by

Greg ScottPro Member
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
1y
The problem with trying to invest $500,000 is you really can't use the same strategies you use with $50,000 and be effective.
When I was buying SF houses I could buy them (using hard money) for $25K out of pocket. Those deals still exist, I see them every day. That means to deploy $500,000 you are going to have to find 20 houses like that, rehab them, put a tenant in them, and then manage them afterward. That takes a lot of effort.
I'd encourage you to start thinking bigger. In an apartment complex or other commercial property it is much easier to deploy larger chunks of money and get it working faster. On the other hand, you had best know what you are doing because you are putting in larger chunks of money.
I agree with your comments on climate change and I am bullish on the Midwest, particularly the Great Lakes area. Just a word of caution about Metro Detroit, it still has a large portion of its economic activity related to automotive. (I worked for Ford for 26 years) Real estate values will track the health of the auto industry.
4 Reply
Leslie Beia
OP
Investor · Austin TX · Member since 2021 · 49 posts · 26 votes
1y
Quote from @Greg Scott:

The problem with trying to invest $500,000 is you really can't use the same strategies you use with $50,000 and be effective.
When I was buying SF houses I could buy them (using hard money) for $25K out of pocket. Those deals still exist, I see them every day. That means to deploy $500,000 you are going to have to find 20 houses like that, rehab them, put a tenant in them, and then manage them afterward. That takes a lot of effort.
I'd encourage you to start thinking bigger. In an apartment complex or other commercial property it is much easier to deploy larger chunks of money and get it working faster. On the other hand, you had best know what you are doing because you are putting in larger chunks of money.
I agree with your comments on climate change and I am bullish on the Midwest, particularly the Great Lakes area. Just a word of caution about Metro Detroit, it still has a large portion of its economic activity related to automotive. (I worked for Ford for 26 years) Real estate values will track the health of the auto industry.
Thank you Greg! I agree, which is what compelled me to post. In my own journey, capital was always the limiting factor, so SFH's are just the default. I know there are ways to deploy the capital that will get us to our goal faster, I'm just well aware of my personal experience gap. In regards to Detroit, all signs point to growth but now with Trump in office I'm very nervous- tariffs on Canada would really hurt us. Also massive cuts to government spending that support recovering economies would not be good for that city. Do you think it would be better to focus on the more expensive areas- I'm in the Grand Traverse region- and if so, what assets? Thank you!
0 Reply
Travis Biziorek
Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
1y
Leslie, sounds like you and your sister are in a great position with the capital and mindset to scale quickly. Detroit is a great place for that, but as you probably already know, it takes work and strategy.

For background, I moved from CA to Troy, MI, back in 2017, lived there for five years, and built my Detroit portfolio aggressively—12 doors in 2.5 years, generating $16,000/month in gross rents. It wasn’t easy, but it was one of the best moves I made. I now live back in CA, and my portfolio runs fully managed, but getting there took a lot of legwork upfront.

A few things that stood out from your post:

• If you’re focused on appreciation over cash flow, you’ll want to be highly selective in Detroit. There are strong path-of-progress areas, but you need to know the nuances.

• BRRRR still works, but it's not what it was 3-4 years ago. Appraisals are tricky, and refinancing can take time. Having cash ready to deploy is a huge advantage.

• Turnkey is viable but expect to pay a premium. If you want to build equity quickly, some level of hands-on involvement is key.

• I’m curious how you’re structuring your property management. If you plan to self-manage initially in MI but go full management in Detroit, you’ll want a very dialed-in team. That’s where a lot of investors struggle.

If you’re interested, happy to share more insights or resources to help you strategize. You’re thinking through things the right way, and Detroit can be a fantastic place to execute your plan if you get the right setup in place.

1 Reply
Jared Smith
Real Estate Agent · Lakeland, TN · Member since 2015 · 214 posts · 105 votes
1y
@Leslie Beia, what an exciting opportunity you have in front of you. I think it will be good to look for a balanced approach. I love what @Greg Scott said about deploying larger chunks of money and level of effort required. There is definitely opportunities to not go all-in for any one investment strategy, I would encourage a mix of strategies. Some that may be higher returns but require more focus/effort from you and then some more hands strategies that can offset what you are doing but are lower risk, more steady returns.
My only experiences with Detroit area are through friends that purchased low priced homes there years ago also I am not qualified for advice on that front, but do have SFR, turnkey, and commercial experience and think those could be great options for you.
1 Reply
Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
1y
If you've never done rentals before, I'd be careful with how you start. Look at quality properties (not something that is cheap and looks good on paper). Also be honest with what you want and how much time you have. As you are partnering with your sister, have a legal document drawn up as to what happens if one of you wants to sell and the other doesn't, how expenses will be split along with money you are putting down, borrowing, profits, etc.
0 Reply
Dominic M.
Property Manager · Northern Virginia & DC · Member since 2020 · 157 posts · 69 votes
1y
Perhaps seek out and audit GPs and their private offerings and invest with them as an LP. Typically a solid GP would reach at a 2x multiple in 5 years, taking your 500k to 1MM. You should be able to self direct the 401k into these structures. Happy to talk more about this, reach out anytime :)

However, sounds like you're up for the task to go out alone.
0 Reply
Jason Dillard
Real Estate Broker · Greer, SC · Member since 2013 · 548 posts · 271 votes
1y
Quote from @Theresa Harris:

If you've never done rentals before, I'd be careful with how you start. Look at quality properties (not something that is cheap and looks good on paper). Also be honest with what you want and how much time you have. As you are partnering with your sister, have a legal document drawn up as to what happens if one of you wants to sell and the other doesn't, how expenses will be split along with money you are putting down, borrowing, profits, etc.

Buy your flips with soft created Paper secured by a flip you’d like to keep. Create the payment that’s very low in comparison to what your keeper would bring in rent. Consider lease optioning the “now keeper” and walking the created debt forward if you lease option buyer can cash you out.
These strategies would will grow you cash flow safely without dealing with a bank.
0 Reply
Jeremy Horton
Rental Property Investor · Somewhere over the Rainbow · Member since 2021 · 1k+ posts · 1k+ votes
1y
I'd be tempted into doing an STR (maybe with a higher down payment to ensure cashflow, just run ROI numbers) or an apartment complex - I personally wouldn't mess w/ small stuff. Even developing a mobile home park, affordable townhomes or self storage.
A "miserable corporate job to no where" isn't all that bad - health insurance benefits, 401k matching, probably some sort of discount stock purchase plan, stability, lenders like it. Sounds like she has a good W2.
Netting 30k/month isn't a small feat - especially without putting in consistent work. You really need a business or a commercial asset in my opinion - contractor bays, oil change type centers -something that everyone uses. Think if one house grosses 1k/month, then it may net say $500/month (after maintenance/repairs, CapEx). You're asking for 30k month - that's 60 of those houses...in a few years. Not saying it's impossible, but that is a full fledged business. You really need an infrastructure to run something like that - systems, people...and you have to keep it going.
Also - if you invest that 500k in an S&P 500 tracker - you'll average 8%/year - 40k. Not too shabby for literally 0 work or thought.
I would also take a look at your expenses - 15k/month in Michigan? Is it really that HCOL of an area? 15k/month = 180k/year. FIRE would essentially be pulling 4% a year so she needs around 4.5mm. The two of you together at 30k/month = 9mm. I think you'll need some time to get to that number, honestly.
The other serious honest question you have to ask yourself (you're wanting in invest a lot of capital - and your sister's at that) - how successful have you been in RE? What do your yearly numbers look like? What's your overall ROI and cashflow? Have you been more or less successful than you predicted? Why?
4 Reply
Kerry Noble JrPro Member
Investor · Indianapolis, IN · Member since 2018 · 2k+ posts · 1k+ votes
1y
Ive become big on lending...
id take a portion of it and put it into lending. Id take maybe 150K and get a secured line against it and lend off of it.....then just let it snowball.
then the rest just use it as downpayments to get you into deals and then refi with DSCR
2 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
1y
Quote from @Jeremy Horton:

I'd be tempted into doing an STR (maybe with a higher down payment to ensure cashflow, just run ROI numbers) or an apartment complex - I personally wouldn't mess w/ small stuff. Even developing a mobile home park, affordable townhomes or self storage.
A "miserable corporate job to no where" isn't all that bad - health insurance benefits, 401k matching, probably some sort of discount stock purchase plan, stability, lenders like it. Sounds like she has a good W2.
Netting 30k/month isn't a small feat - especially without putting in consistent work. You really need a business or a commercial asset in my opinion - contractor bays, oil change type centers -something that everyone uses. Think if one house grosses 1k/month, then it may net say $500/month (after maintenance/repairs, CapEx). You're asking for 30k month - that's 60 of those houses...in a few years. Not saying it's impossible, but that is a full fledged business. You really need an infrastructure to run something like that - systems, people...and you have to keep it going.
Also - if you invest that 500k in an S&P 500 tracker - you'll average 8%/year - 40k. Not too shabby for literally 0 work or thought.
I would also take a look at your expenses - 15k/month in Michigan? Is it really that HCOL of an area? 15k/month = 180k/year. FIRE would essentially be pulling 4% a year so she needs around 4.5mm. The two of you together at 30k/month = 9mm. I think you'll need some time to get to that number, honestly.
The other serious honest question you have to ask yourself (you're wanting in invest a lot of capital - and your sister's at that) - how successful have you been in RE? What do your yearly numbers look like? What's your overall ROI and cashflow? Have you been more or less successful than you predicted? Why?

I find it ironic how people categorize their no where corporate job then say that job has created this wealth for them and security.. Also I find it kind of humerus were 15 years ago when i joined BP the FI number was 5k to many up to 10k now its 15k and up.. ( which is realistic in my mind I never thought 5k was realistic. Getting to 30k or more a month on NET NET cash flow takes a boat load of capital or you need to be in the transactional side of the industry.
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
7 Reply
Rene HosmanPro Member
Rental Property Investor · Denver, CO · Member since 2024 · 583 posts · 653 votes
1y
Quote from @Leslie Beia:

Hi All!
I've been investing for 5 years, combo of BRRRR, Airbnb, and flips, near me and out of state. I listen to podcasts and read books and have absorbed a ton of information over the years, so I'm familiar with numerous strategies, at least in concept. This year, I'm partnering with my sister, who is in a miserable corporate job taking her nowhere. But she has the W2 income and around $500k cash she's able to deploy towards our goal, which is to reach 'financial freedom' in 5-10 years. For me, that looks like around $15k/month income (and I'm starting from very little- long story). I have her figuring out her FI number, it's going to be a lot more than mine, but she also has a substantial 401k. So I'm thinking a good target will be around $30k/month to replace both of our incomes and live how we want to live, respectively.
We both live in MI and my current plan is to invest in single- and multi-family in solid, path-of-progress neighborhoods in metro Detroit, and also get some larger SFH's in the more expensive market where we live and do rent-by-the-room/co-living. We have a very severe affordable housing issue here! We are both committed to re-investing any cash flow back into the asset to snowball equity as quickly as possible. I like MI because of our climate, which is relatively stable compared to much of the country. I think our cooler climate and fresh water resources are going to attract a lot of population in coming years, especially as CA/FL become impossibly expensive for many people.
I'd love feedback and advice from those of you who are well ahead of me. I've resisted long term rentals, but am finally accepting that this is the most boring but solid way to create wealth. I am definitely focused on appreciation over cash flow. I am planning to BRRRR in DET and do turn-key up here as we are so short on labor. Are there other pathways I should consider, based on my goals and experience? I'm going to be doing all the research and execution, and I would self-manage the co-living at least the 1st year or two to learn it. Regular LTR's in DET would be fully managed. I love doing flips but I don't often see enough spread in DET and again, labor is too scarce up here to make it viable. It's exciting to have capital, I just want to be very careful and strategic. Thanks in advance for any insight!

Hi Leslie! This is a great question to start with, I appreciate that you mention you're familiar with many strategies in concept. It's funny how you can fill your mind with education and then when the moment of truth comes and you have to decide it can feel paralyzing in some ways.

Educating yourself is so important, and I think that the general education of listening to the podcast can serve as a great foundation. But when you're really ready to put rubber to the road you have to start being more active in your education, seeking out specific information and really thinking through what that would look like for you. Versus just listening to whatever topics are on the pod that week. That's the real difference that will allow you to make educated decisions.

First let me say I agree with @Greg Scott - starting with 500k is quite a bit different than 25k or 50k and should be treated as such. Secondly, I would like to point out you do not need to spend 500k in one place, at one time, spreading yourself too thin is a recipe for disaster.
Many investors if they make a mistake can recover as long as they took risk proportional to their tolerance and income. But for most investors, recovering from that mistake may take some time to rebuild. You however have the luxury to take a couple big swings and be able to recover and repeat what worked much quicker.
Ultimately no one else can make this decision for you, and it sounds like it's you driving the decisions for both yourself and your sister. Here's a couple practical steps I'd recommend to help make your decision:
1. Read Start with Strategy and do the accompanying workbook. I love how practical and concrete this book is about evaluating options and making a decision. I was stuck in analysis paralysis for 10+months and then I read this book and no joke had my next project under contract within 3 weeks. Now that project is done, I'm re-reading the book to evaluate where I am now and what step to take next.
2. Depending on when you see this response, I think Momentum 2025 could be a perfect fit for where you're at right now, it's a weekly 8-week virtual series going over all kinds of RE topics with the pros, there's time for Q&A and also everyone will have access to small accountability groups to network and bounce ideas off one another. This session starts next week on 2/11 (recordings of sessions will also be available to participants). Message me if you're interested as I have an offer I can give you!
3. No matter what strategy you choose, you could choose to offset some of your active investing income with passive RE investing through Syndications or private money lending. I would definitely do more research into both as they can be lucrative niches in the investing world. PassivePockets.com has a free 7-day trial to go look around and chat with others who are actively investing in syndications. Lend to Live is a great book on the topic of private money lending, and Devon Kennard is also someone I follow closely who has a private lending business.
0 Reply
Leslie Beia
OP
Investor · Austin TX · Member since 2021 · 49 posts · 26 votes
1y
Quote from @Rene Hosman:

Quote from @Leslie Beia:

Hi All!
I've been investing for 5 years, combo of BRRRR, Airbnb, and flips, near me and out of state. I listen to podcasts and read books and have absorbed a ton of information over the years, so I'm familiar with numerous strategies, at least in concept. This year, I'm partnering with my sister, who is in a miserable corporate job taking her nowhere. But she has the W2 income and around $500k cash she's able to deploy towards our goal, which is to reach 'financial freedom' in 5-10 years. For me, that looks like around $15k/month income (and I'm starting from very little- long story). I have her figuring out her FI number, it's going to be a lot more than mine, but she also has a substantial 401k. So I'm thinking a good target will be around $30k/month to replace both of our incomes and live how we want to live, respectively.
We both live in MI and my current plan is to invest in single- and multi-family in solid, path-of-progress neighborhoods in metro Detroit, and also get some larger SFH's in the more expensive market where we live and do rent-by-the-room/co-living. We have a very severe affordable housing issue here! We are both committed to re-investing any cash flow back into the asset to snowball equity as quickly as possible. I like MI because of our climate, which is relatively stable compared to much of the country. I think our cooler climate and fresh water resources are going to attract a lot of population in coming years, especially as CA/FL become impossibly expensive for many people.
I'd love feedback and advice from those of you who are well ahead of me. I've resisted long term rentals, but am finally accepting that this is the most boring but solid way to create wealth. I am definitely focused on appreciation over cash flow. I am planning to BRRRR in DET and do turn-key up here as we are so short on labor. Are there other pathways I should consider, based on my goals and experience? I'm going to be doing all the research and execution, and I would self-manage the co-living at least the 1st year or two to learn it. Regular LTR's in DET would be fully managed. I love doing flips but I don't often see enough spread in DET and again, labor is too scarce up here to make it viable. It's exciting to have capital, I just want to be very careful and strategic. Thanks in advance for any insight!

Hi Leslie! This is a great question to start with, I appreciate that you mention you're familiar with many strategies in concept. It's funny how you can fill your mind with education and then when the moment of truth comes and you have to decide it can feel paralyzing in some ways.

Educating yourself is so important, and I think that the general education of listening to the podcast can serve as a great foundation. But when you're really ready to put rubber to the road you have to start being more active in your education, seeking out specific information and really thinking through what that would look like for you. Versus just listening to whatever topics are on the pod that week. That's the real difference that will allow you to make educated decisions.

First let me say I agree with @Greg Scott - starting with 500k is quite a bit different than 25k or 50k and should be treated as such. Secondly, I would like to point out you do not need to spend 500k in one place, at one time, spreading yourself too thin is a recipe for disaster.
Many investors if they make a mistake can recover as long as they took risk proportional to their tolerance and income. But for most investors, recovering from that mistake may take some time to rebuild. You however have the luxury to take a couple big swings and be able to recover and repeat what worked much quicker.
Ultimately no one else can make this decision for you, and it sounds like it's you driving the decisions for both yourself and your sister. Here's a couple practical steps I'd recommend to help make your decision:
1. Read Start with Strategy and do the accompanying workbook. I love how practical and concrete this book is about evaluating options and making a decision. I was stuck in analysis paralysis for 10+months and then I read this book and no joke had my next project under contract within 3 weeks. Now that project is done, I'm re-reading the book to evaluate where I am now and what step to take next.
2. Depending on when you see this response, I think Momentum 2025 could be a perfect fit for where you're at right now, it's a weekly 8-week virtual series going over all kinds of RE topics with the pros, there's time for Q&A and also everyone will have access to small accountability groups to network and bounce ideas off one another. This session starts next week on 2/11 (recordings of sessions will also be available to participants). Message me if you're interested as I have an offer I can give you!
3. No matter what strategy you choose, you could choose to offset some of your active investing income with passive RE investing through Syndications or private money lending. I would definitely do more research into both as they can be lucrative niches in the investing world. PassivePockets.com has a free 7-day trial to go look around and chat with others who are actively investing in syndications. Lend to Live is a great book on the topic of private money lending, and Devon Kennard is also someone I follow closely who has a private lending business.

Thanks! I want to be clear that there is no intention to spend all that money quickly, or even all of it at all. I just mentioned that number because I know it expands our options, and I don't want to limit my thinking to just what I'm already familiar with. That said, I'm comfortable with the BRRRR strategy, I understand how it can help us build net worth and also limit the actual cash in and therefore risk to her. So I am probably not going to shift to a whole new strategy, but build upon the skills I've developed to do better deals. I would like to start thinking about a good next step, in 5 years or so, where we put the equity we've created to use in more passive assets. For now, I'm mostly focused on identifying the right markets. This response is a shift from what I originally posted I know- I spent all weekend down the rabbit hole and have clarified my thoughts a bit, which was what I was looking to do when I posted!
2 Reply
Leslie Beia
OP
Investor · Austin TX · Member since 2021 · 49 posts · 26 votes
1y
Quote from @Jay Hinrichs:

Quote from @Jeremy Horton:

I'd be tempted into doing an STR (maybe with a higher down payment to ensure cashflow, just run ROI numbers) or an apartment complex - I personally wouldn't mess w/ small stuff. Even developing a mobile home park, affordable townhomes or self storage.
A "miserable corporate job to no where" isn't all that bad - health insurance benefits, 401k matching, probably some sort of discount stock purchase plan, stability, lenders like it. Sounds like she has a good W2.
Netting 30k/month isn't a small feat - especially without putting in consistent work. You really need a business or a commercial asset in my opinion - contractor bays, oil change type centers -something that everyone uses. Think if one house grosses 1k/month, then it may net say $500/month (after maintenance/repairs, CapEx). You're asking for 30k month - that's 60 of those houses...in a few years. Not saying it's impossible, but that is a full fledged business. You really need an infrastructure to run something like that - systems, people...and you have to keep it going.
Also - if you invest that 500k in an S&P 500 tracker - you'll average 8%/year - 40k. Not too shabby for literally 0 work or thought.
I would also take a look at your expenses - 15k/month in Michigan? Is it really that HCOL of an area? 15k/month = 180k/year. FIRE would essentially be pulling 4% a year so she needs around 4.5mm. The two of you together at 30k/month = 9mm. I think you'll need some time to get to that number, honestly.
The other serious honest question you have to ask yourself (you're wanting in invest a lot of capital - and your sister's at that) - how successful have you been in RE? What do your yearly numbers look like? What's your overall ROI and cashflow? Have you been more or less successful than you predicted? Why?

I find it ironic how people categorize their no where corporate job then say that job has created this wealth for them and security.. Also I find it kind of humerus were 15 years ago when i joined BP the FI number was 5k to many up to 10k now its 15k and up.. ( which is realistic in my mind I never thought 5k was realistic. Getting to 30k or more a month on NET NET cash flow takes a boat load of capital or you need to be in the transactional side of the industry.

Wealth and security are wonderful, and that's why she's staying. But her company, like so many, has whittled down their actual service to the point that they aren't really doing useful work, just enriching the CEO. There is no opportunity for her to advance, she is unable to actually help her clients, and she hasn't had a raise in 3 years, where it used to be every year. It's soul-crushing, and no one should spend the bulk of their lives dreading going to work. Isn't that why many people get into RE?
$15k is a goal, and I do understand that it's a big one, at least if we are dealing w/ SFH's. I'm focused on using the skills I'm comfortable with and getting better at them to create equity that we can leverage in 5-10 years and get into something bigger. Just thinking ahead here.
0 Reply
Rene HosmanPro Member
Rental Property Investor · Denver, CO · Member since 2024 · 583 posts · 653 votes
1y
Quote from @Leslie Beia:

Quote from @Rene Hosman:

Quote from @Leslie Beia:

Hi All!
I've been investing for 5 years, combo of BRRRR, Airbnb, and flips, near me and out of state. I listen to podcasts and read books and have absorbed a ton of information over the years, so I'm familiar with numerous strategies, at least in concept. This year, I'm partnering with my sister, who is in a miserable corporate job taking her nowhere. But she has the W2 income and around $500k cash she's able to deploy towards our goal, which is to reach 'financial freedom' in 5-10 years. For me, that looks like around $15k/month income (and I'm starting from very little- long story). I have her figuring out her FI number, it's going to be a lot more than mine, but she also has a substantial 401k. So I'm thinking a good target will be around $30k/month to replace both of our incomes and live how we want to live, respectively.
We both live in MI and my current plan is to invest in single- and multi-family in solid, path-of-progress neighborhoods in metro Detroit, and also get some larger SFH's in the more expensive market where we live and do rent-by-the-room/co-living. We have a very severe affordable housing issue here! We are both committed to re-investing any cash flow back into the asset to snowball equity as quickly as possible. I like MI because of our climate, which is relatively stable compared to much of the country. I think our cooler climate and fresh water resources are going to attract a lot of population in coming years, especially as CA/FL become impossibly expensive for many people.
I'd love feedback and advice from those of you who are well ahead of me. I've resisted long term rentals, but am finally accepting that this is the most boring but solid way to create wealth. I am definitely focused on appreciation over cash flow. I am planning to BRRRR in DET and do turn-key up here as we are so short on labor. Are there other pathways I should consider, based on my goals and experience? I'm going to be doing all the research and execution, and I would self-manage the co-living at least the 1st year or two to learn it. Regular LTR's in DET would be fully managed. I love doing flips but I don't often see enough spread in DET and again, labor is too scarce up here to make it viable. It's exciting to have capital, I just want to be very careful and strategic. Thanks in advance for any insight!

Hi Leslie! This is a great question to start with, I appreciate that you mention you're familiar with many strategies in concept. It's funny how you can fill your mind with education and then when the moment of truth comes and you have to decide it can feel paralyzing in some ways.

Educating yourself is so important, and I think that the general education of listening to the podcast can serve as a great foundation. But when you're really ready to put rubber to the road you have to start being more active in your education, seeking out specific information and really thinking through what that would look like for you. Versus just listening to whatever topics are on the pod that week. That's the real difference that will allow you to make educated decisions.

First let me say I agree with @Greg Scott - starting with 500k is quite a bit different than 25k or 50k and should be treated as such. Secondly, I would like to point out you do not need to spend 500k in one place, at one time, spreading yourself too thin is a recipe for disaster.
Many investors if they make a mistake can recover as long as they took risk proportional to their tolerance and income. But for most investors, recovering from that mistake may take some time to rebuild. You however have the luxury to take a couple big swings and be able to recover and repeat what worked much quicker.
Ultimately no one else can make this decision for you, and it sounds like it's you driving the decisions for both yourself and your sister. Here's a couple practical steps I'd recommend to help make your decision:
1. Read Start with Strategy and do the accompanying workbook. I love how practical and concrete this book is about evaluating options and making a decision. I was stuck in analysis paralysis for 10+months and then I read this book and no joke had my next project under contract within 3 weeks. Now that project is done, I'm re-reading the book to evaluate where I am now and what step to take next.
2. Depending on when you see this response, I think Momentum 2025 could be a perfect fit for where you're at right now, it's a weekly 8-week virtual series going over all kinds of RE topics with the pros, there's time for Q&A and also everyone will have access to small accountability groups to network and bounce ideas off one another. This session starts next week on 2/11 (recordings of sessions will also be available to participants). Message me if you're interested as I have an offer I can give you!
3. No matter what strategy you choose, you could choose to offset some of your active investing income with passive RE investing through Syndications or private money lending. I would definitely do more research into both as they can be lucrative niches in the investing world. PassivePockets.com has a free 7-day trial to go look around and chat with others who are actively investing in syndications. Lend to Live is a great book on the topic of private money lending, and Devon Kennard is also someone I follow closely who has a private lending business.

Thanks! I want to be clear that there is no intention to spend all that money quickly, or even all of it at all. I just mentioned that number because I know it expands our options, and I don't want to limit my thinking to just what I'm already familiar with. That said, I'm comfortable with the BRRRR strategy, I understand how it can help us build net worth and also limit the actual cash in and therefore risk to her. So I am probably not going to shift to a whole new strategy, but build upon the skills I've developed to do better deals. I would like to start thinking about a good next step, in 5 years or so, where we put the equity we've created to use in more passive assets. For now, I'm mostly focused on identifying the right markets. This response is a shift from what I originally posted I know- I spent all weekend down the rabbit hole and have clarified my thoughts a bit, which was what I was looking to do when I posted!

That's great, I'm so glad you went down the rabbit hole and got some clarity on what you want!!
When you think about your eventual passive assets, what are you thinking that will look like?
0 Reply
Jon K.
Rental Property Investor · Perry Hall, MD · Member since 2016 · 586 posts · 598 votes
1y
Quote from @Jay Hinrichs:

Quote from @Jeremy Horton:

I'd be tempted into doing an STR (maybe with a higher down payment to ensure cashflow, just run ROI numbers) or an apartment complex - I personally wouldn't mess w/ small stuff. Even developing a mobile home park, affordable townhomes or self storage.
A "miserable corporate job to no where" isn't all that bad - health insurance benefits, 401k matching, probably some sort of discount stock purchase plan, stability, lenders like it. Sounds like she has a good W2.
Netting 30k/month isn't a small feat - especially without putting in consistent work. You really need a business or a commercial asset in my opinion - contractor bays, oil change type centers -something that everyone uses. Think if one house grosses 1k/month, then it may net say $500/month (after maintenance/repairs, CapEx). You're asking for 30k month - that's 60 of those houses...in a few years. Not saying it's impossible, but that is a full fledged business. You really need an infrastructure to run something like that - systems, people...and you have to keep it going.
Also - if you invest that 500k in an S&P 500 tracker - you'll average 8%/year - 40k. Not too shabby for literally 0 work or thought.
I would also take a look at your expenses - 15k/month in Michigan? Is it really that HCOL of an area? 15k/month = 180k/year. FIRE would essentially be pulling 4% a year so she needs around 4.5mm. The two of you together at 30k/month = 9mm. I think you'll need some time to get to that number, honestly.
The other serious honest question you have to ask yourself (you're wanting in invest a lot of capital - and your sister's at that) - how successful have you been in RE? What do your yearly numbers look like? What's your overall ROI and cashflow? Have you been more or less successful than you predicted? Why?

I find it ironic how people categorize their no where corporate job then say that job has created this wealth for them and security.. Also I find it kind of humerus were 15 years ago when i joined BP the FI number was 5k to many up to 10k now its 15k and up.. ( which is realistic in my mind I never thought 5k was realistic. Getting to 30k or more a month on NET NET cash flow takes a boat load of capital or you need to be in the transactional side of the industry.

Agreed, or it takes a lot of time and rising rents. Realistically it's probably both.
0 Reply
Leslie Beia
OP
Investor · Austin TX · Member since 2021 · 49 posts · 26 votes
1y
Quote from @Rene Hosman:

Quote from @Leslie Beia:

Quote from @Rene Hosman:

Quote from @Leslie Beia:

Hi All!
I've been investing for 5 years, combo of BRRRR, Airbnb, and flips, near me and out of state. I listen to podcasts and read books and have absorbed a ton of information over the years, so I'm familiar with numerous strategies, at least in concept. This year, I'm partnering with my sister, who is in a miserable corporate job taking her nowhere. But she has the W2 income and around $500k cash she's able to deploy towards our goal, which is to reach 'financial freedom' in 5-10 years. For me, that looks like around $15k/month income (and I'm starting from very little- long story). I have her figuring out her FI number, it's going to be a lot more than mine, but she also has a substantial 401k. So I'm thinking a good target will be around $30k/month to replace both of our incomes and live how we want to live, respectively.
We both live in MI and my current plan is to invest in single- and multi-family in solid, path-of-progress neighborhoods in metro Detroit, and also get some larger SFH's in the more expensive market where we live and do rent-by-the-room/co-living. We have a very severe affordable housing issue here! We are both committed to re-investing any cash flow back into the asset to snowball equity as quickly as possible. I like MI because of our climate, which is relatively stable compared to much of the country. I think our cooler climate and fresh water resources are going to attract a lot of population in coming years, especially as CA/FL become impossibly expensive for many people.
I'd love feedback and advice from those of you who are well ahead of me. I've resisted long term rentals, but am finally accepting that this is the most boring but solid way to create wealth. I am definitely focused on appreciation over cash flow. I am planning to BRRRR in DET and do turn-key up here as we are so short on labor. Are there other pathways I should consider, based on my goals and experience? I'm going to be doing all the research and execution, and I would self-manage the co-living at least the 1st year or two to learn it. Regular LTR's in DET would be fully managed. I love doing flips but I don't often see enough spread in DET and again, labor is too scarce up here to make it viable. It's exciting to have capital, I just want to be very careful and strategic. Thanks in advance for any insight!

Hi Leslie! This is a great question to start with, I appreciate that you mention you're familiar with many strategies in concept. It's funny how you can fill your mind with education and then when the moment of truth comes and you have to decide it can feel paralyzing in some ways.

Educating yourself is so important, and I think that the general education of listening to the podcast can serve as a great foundation. But when you're really ready to put rubber to the road you have to start being more active in your education, seeking out specific information and really thinking through what that would look like for you. Versus just listening to whatever topics are on the pod that week. That's the real difference that will allow you to make educated decisions.

First let me say I agree with @Greg Scott - starting with 500k is quite a bit different than 25k or 50k and should be treated as such. Secondly, I would like to point out you do not need to spend 500k in one place, at one time, spreading yourself too thin is a recipe for disaster.
Many investors if they make a mistake can recover as long as they took risk proportional to their tolerance and income. But for most investors, recovering from that mistake may take some time to rebuild. You however have the luxury to take a couple big swings and be able to recover and repeat what worked much quicker.
Ultimately no one else can make this decision for you, and it sounds like it's you driving the decisions for both yourself and your sister. Here's a couple practical steps I'd recommend to help make your decision:
1. Read Start with Strategy and do the accompanying workbook. I love how practical and concrete this book is about evaluating options and making a decision. I was stuck in analysis paralysis for 10+months and then I read this book and no joke had my next project under contract within 3 weeks. Now that project is done, I'm re-reading the book to evaluate where I am now and what step to take next.
2. Depending on when you see this response, I think Momentum 2025 could be a perfect fit for where you're at right now, it's a weekly 8-week virtual series going over all kinds of RE topics with the pros, there's time for Q&A and also everyone will have access to small accountability groups to network and bounce ideas off one another. This session starts next week on 2/11 (recordings of sessions will also be available to participants). Message me if you're interested as I have an offer I can give you!
3. No matter what strategy you choose, you could choose to offset some of your active investing income with passive RE investing through Syndications or private money lending. I would definitely do more research into both as they can be lucrative niches in the investing world. PassivePockets.com has a free 7-day trial to go look around and chat with others who are actively investing in syndications. Lend to Live is a great book on the topic of private money lending, and Devon Kennard is also someone I follow closely who has a private lending business.

Thanks! I want to be clear that there is no intention to spend all that money quickly, or even all of it at all. I just mentioned that number because I know it expands our options, and I don't want to limit my thinking to just what I'm already familiar with. That said, I'm comfortable with the BRRRR strategy, I understand how it can help us build net worth and also limit the actual cash in and therefore risk to her. So I am probably not going to shift to a whole new strategy, but build upon the skills I've developed to do better deals. I would like to start thinking about a good next step, in 5 years or so, where we put the equity we've created to use in more passive assets. For now, I'm mostly focused on identifying the right markets. This response is a shift from what I originally posted I know- I spent all weekend down the rabbit hole and have clarified my thoughts a bit, which was what I was looking to do when I posted!

That's great, I'm so glad you went down the rabbit hole and got some clarity on what you want!!
When you think about your eventual passive assets, what are you thinking that will look like?

I imagine REIT's and/or syndications- I'm aware but really haven't done much research!
0 Reply
Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
1y
@Leslie Beia what do YOU think $30k income would come from
How many doors?
A real basic guess is 30 houses each cashflowing $1,000/month.
In Metro Detroit, this means $1500+ in rent, with the difference convering taxes, insurance, maintenance and vacancy - NO MORTGAGE!
How are you going to acquire 30 houses free & clear?
Class A: around $250k each = $7.5 million
Class B: around $175k each = $5.25 million
Class C: around $125k each = $3.75 million
- maintenance & tenant-nonperformance will require more units
Class D: unlikely to work out
So, how are you going to turn $500k into at least $3.75M?
Your options are:
1) Wholesaling
2) Flipping
3) BRRRRs
4) Private Lending
- Will propably take a combination of all of the above, as you encounter various opportunities.
Here's the BIG question - how long do you think this will take?
I've done all of the above, so DM me if you'd like to discuss in more detail.
[email protected]248-209-6824
Logical Property Management4.9451 Reviews
Website View Page
3 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
1y
Quote from @Leslie Beia:

Quote from @Jay Hinrichs:

Quote from @Jeremy Horton:

I'd be tempted into doing an STR (maybe with a higher down payment to ensure cashflow, just run ROI numbers) or an apartment complex - I personally wouldn't mess w/ small stuff. Even developing a mobile home park, affordable townhomes or self storage.
A "miserable corporate job to no where" isn't all that bad - health insurance benefits, 401k matching, probably some sort of discount stock purchase plan, stability, lenders like it. Sounds like she has a good W2.
Netting 30k/month isn't a small feat - especially without putting in consistent work. You really need a business or a commercial asset in my opinion - contractor bays, oil change type centers -something that everyone uses. Think if one house grosses 1k/month, then it may net say $500/month (after maintenance/repairs, CapEx). You're asking for 30k month - that's 60 of those houses...in a few years. Not saying it's impossible, but that is a full fledged business. You really need an infrastructure to run something like that - systems, people...and you have to keep it going.
Also - if you invest that 500k in an S&P 500 tracker - you'll average 8%/year - 40k. Not too shabby for literally 0 work or thought.
I would also take a look at your expenses - 15k/month in Michigan? Is it really that HCOL of an area? 15k/month = 180k/year. FIRE would essentially be pulling 4% a year so she needs around 4.5mm. The two of you together at 30k/month = 9mm. I think you'll need some time to get to that number, honestly.
The other serious honest question you have to ask yourself (you're wanting in invest a lot of capital - and your sister's at that) - how successful have you been in RE? What do your yearly numbers look like? What's your overall ROI and cashflow? Have you been more or less successful than you predicted? Why?

I find it ironic how people categorize their no where corporate job then say that job has created this wealth for them and security.. Also I find it kind of humerus were 15 years ago when i joined BP the FI number was 5k to many up to 10k now its 15k and up.. ( which is realistic in my mind I never thought 5k was realistic. Getting to 30k or more a month on NET NET cash flow takes a boat load of capital or you need to be in the transactional side of the industry.

Wealth and security are wonderful, and that's why she's staying. But her company, like so many, has whittled down their actual service to the point that they aren't really doing useful work, just enriching the CEO. There is no opportunity for her to advance, she is unable to actually help her clients, and she hasn't had a raise in 3 years, where it used to be every year. It's soul-crushing, and no one should spend the bulk of their lives dreading going to work. Isn't that why many people get into RE?
$15k is a goal, and I do understand that it's a big one, at least if we are dealing w/ SFH's. I'm focused on using the skills I'm comfortable with and getting better at them to create equity that we can leverage in 5-10 years and get into something bigger. Just thinking ahead here.

I get it my Daughter spent 20 plus years worker her way up the ladder at Intel right out of collage. And its distressing to see that company melt down like it is and most likely get broken up like what is starting to happen.. Although she got very fortunate ( probably because of her skill and dedication) But the CFO of one of the spin offs on brought her over and she is now the head of corporate finance for this company and will be getting all the perks that come along with it pre IPO stock etc. But unlike your relative she loves her job so maybe that is why she was tagged. I mean she grew up in a RE family IE thats all I have done all my life. But Real Estate she had no interest in. RE is a great industry but not with out its up s and downs.. thats for sure. Yall will find your way and I wish you the best at it.
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
2 Reply
Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
1y
@Leslie Beia
hello. i like your idea to stay local. it sounds like a lot of what you've proposed you could be successful at... but, for example, several aren't cash flow strategies in the short term. or even in the 5-ish year term. 10-15 is where I think it starts to pick up. so if that is what you're targeting i think that's great.
you said you've done BRRRR and STRs - if those are working for you why not keep going?
0 Reply
Becca F.
Rental Property Investor · San Francisco Bay Area · Member since 2022 · 1k+ posts · 1k+ votes
1y
Quote from @Jeremy Horton:

I'd be tempted into doing an STR (maybe with a higher down payment to ensure cashflow, just run ROI numbers) or an apartment complex - I personally wouldn't mess w/ small stuff. Even developing a mobile home park, affordable townhomes or self storage.
A "miserable corporate job to no where" isn't all that bad - health insurance benefits, 401k matching, probably some sort of discount stock purchase plan, stability, lenders like it. Sounds like she has a good W2.
Netting 30k/month isn't a small feat - especially without putting in consistent work. You really need a business or a commercial asset in my opinion - contractor bays, oil change type centers -something that everyone uses. Think if one house grosses 1k/month, then it may net say $500/month (after maintenance/repairs, CapEx). You're asking for 30k month - that's 60 of those houses...in a few years. Not saying it's impossible, but that is a full fledged business. You really need an infrastructure to run something like that - systems, people...and you have to keep it going.
Also - if you invest that 500k in an S&P 500 tracker - you'll average 8%/year - 40k. Not too shabby for literally 0 work or thought.
I would also take a look at your expenses - 15k/month in Michigan? Is it really that HCOL of an area? 15k/month = 180k/year. FIRE would essentially be pulling 4% a year so she needs around 4.5mm. The two of you together at 30k/month = 9mm. I think you'll need some time to get to that number, honestly.
The other serious honest question you have to ask yourself (you're wanting in invest a lot of capital - and your sister's at that) - how successful have you been in RE? What do your yearly numbers look like? What's your overall ROI and cashflow? Have you been more or less successful than you predicted? Why?

I was shocked when I saw $15k a month FIRE in Michigan. I'm in the San Francisco Bay Area and my FIRE number isn't $15k a month (with kid costs it is but I wouldn't be retiring early/quitting W2 job with child costs).

I don't have much feedback on Michigan but I do agree with affordability with California and Florida and insurance costs, people may be moving to the Midwest.

I agree with previous comments about maybe considering commercial RE, some SFHs, not spending the $500k all at once, and maybe doing some lending. Buying 30 or 60 SFHs and doing BRRRRs on that many homes sounds like a huge headache to me.

I applaud OP on her real estate journey of 5 years with BRRRRs, flips and AirBnbs and doing well with those.

1 Reply
Leslie Beia
OP
Investor · Austin TX · Member since 2021 · 49 posts · 26 votes
1y
Quote from @Becca F.:

Quote from @Jeremy Horton:

I'd be tempted into doing an STR (maybe with a higher down payment to ensure cashflow, just run ROI numbers) or an apartment complex - I personally wouldn't mess w/ small stuff. Even developing a mobile home park, affordable townhomes or self storage.
A "miserable corporate job to no where" isn't all that bad - health insurance benefits, 401k matching, probably some sort of discount stock purchase plan, stability, lenders like it. Sounds like she has a good W2.
Netting 30k/month isn't a small feat - especially without putting in consistent work. You really need a business or a commercial asset in my opinion - contractor bays, oil change type centers -something that everyone uses. Think if one house grosses 1k/month, then it may net say $500/month (after maintenance/repairs, CapEx). You're asking for 30k month - that's 60 of those houses...in a few years. Not saying it's impossible, but that is a full fledged business. You really need an infrastructure to run something like that - systems, people...and you have to keep it going.
Also - if you invest that 500k in an S&P 500 tracker - you'll average 8%/year - 40k. Not too shabby for literally 0 work or thought.
I would also take a look at your expenses - 15k/month in Michigan? Is it really that HCOL of an area? 15k/month = 180k/year. FIRE would essentially be pulling 4% a year so she needs around 4.5mm. The two of you together at 30k/month = 9mm. I think you'll need some time to get to that number, honestly.
The other serious honest question you have to ask yourself (you're wanting in invest a lot of capital - and your sister's at that) - how successful have you been in RE? What do your yearly numbers look like? What's your overall ROI and cashflow? Have you been more or less successful than you predicted? Why?

I was shocked when I saw $15k a month FIRE in Michigan. I'm in the San Francisco Bay Area and my FIRE number isn't $15k a month (with kid costs it is but I wouldn't be retiring early/quitting W2 job with child costs).

I don't have much feedback on Michigan but I do agree with affordability with California and Florida and insurance costs, people may be moving to the Midwest.

I agree with previous comments about maybe considering commercial RE, some SFHs, not spending the $500k all at once, and maybe doing some lending. Buying 30 or 60 SFHs and doing BRRRRs on that many homes sounds like a huge headache to me.

I applaud OP on her real estate journey of 5 years with BRRRRs, flips and AirBnbs and doing well with those.

I need to clarify that $15k is not my FI number, it's an ideal goal I'd like to reach! FI is more like $7k, I've got a sweet little house and live a pretty simple life. RE prices up in NW MI are on par with Austin, where I just moved from, but are going up not down :). I am looking into small commercial this coming week, it might be a better path. Thanks for the thoughts!
0 Reply
V.G JasonPro Member
Investor · Member since 2022 · 3k+ posts · 3k+ votes
1y
FI is a farce; your "number" will need to be tested against inflation so think every 12-15 years it'll be up 40-50%. Then think your investments need to be tested against a recession or bear market, so likely every 7-12 years.

Quit pursuing FI. Pursue this is as an investment, sprinkled in as a hobby.

If you generate enough money annually to dismiss a W2, then consider covering the ever increasing costs of retirement & health care and those do not go at inflation metrics but usually way higher. Then, you can step away.

Until then quit looking two million miles deep, and focus on growth properly. Continuing pursuing REI the way you have the last 5 years that makes sense, and deploy capital in the right opportunities. Don't focus on FI, just continue to grow the portfolio and your ways of making money. This dead-end corporate job is just a typical hate on the W2; in reality, it's given the benefits most dream of and most cannot do without. Don't hate it, embrace it and enjoy other parts of life.

Also making $575k/annually in 5-10 years as a goal with $500k cash deployable today is just difficult and unrealistic.
4 Reply
Jason Matthews
Realtor · Glendale, NY · Member since 2025 · 7 posts · 2 votes
1y
It sounds like you and your sister have a solid plan, and I love that you're thinking long-term with appreciation in mind. BRRRR in Detroit makes a lot of sense, especially in path-of-progress areas, and rent-by-the-room could be a great cash flow play as long as you optimize for tenant quality and lease structure. Since you have capital to deploy, you might also consider small multifamily to scale faster, developer partnerships for pre-construction appreciation, or even international markets like Portugal or Dubai, which offer strong appreciation potential and investor-friendly policies. Syndications or small commercial properties could also be good ways to diversify while keeping your focus on growth. You're in a great position—curious to hear what you're leaning toward next.
0 Reply
Travis TimmonsPro Member
Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
1y
If you really want to become financially independent, it's an all hands on deck, every strategy at once approach. For me, it was live in flips, short term rentals, mid term rentals, good income with a solid savings rate, buying after tax index funds, paying off the primary house, driving old cars, moving a lower cost of living area (from Houston to small town Maine), and selling a business to push me over the top.
It's really hard. Financial success/independence requires your to be paranoid and optimistic at the same time. Even when we became work optional, we still (wife and I) took on another live in flip, got part time jobs, starting cleaning our STRs ourselves rather than hiring cleaners (we're going to stop doing that this summer). You get the point, though. The reality of the situation is much different than a spreadsheet.
If you or your sister want to become work optional, the best way to do it is to downsize your life first. I believe that real cash flow only comes from short term rentals bought right, which are a lot of work, or paid off long/mid term rentals.
The only real way to do it, as I see it, is to go scorched earth and nothing is off limits. You love your primary house? Sell it and take on a live in flip. It's really hard to actually pull off...and it takes a long time (it was 19 years for me).
4 Reply
Josh Otero
Property Manager · Los Angeles, CA · Member since 2024 · 39 posts · 16 votes
1y
Hi @Leslie Beia, congrats on the cash you currently have! Having $500k is a big accomplishment. You don't always have to put it back into real estate. There may not be property flips you see, but some flips or investment ideas that other people have. You've probably heard and have been suggested to invest in stocks, bonds, or have thought about other real estate alternatives. One I may add is becoming a hard money lender.
1 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.