Investor · Kansas City, MO · Member since 2017 · 791 posts · 1k+ votes
My first real estate investment was in 2010. I kept acquiring properties, sometimes using the BRRR strategy. I've been without a day job for 1.5 years looking for more deals and got a couple large portfolios in 2016. That hit our passive income goals but we had to recoup cash buffer.
It's officially official, we are free and neither of us have to work!
Looking forward to living life with my wife and both of us being able to do what we want when we want.
Celebrating with a well aged cigar from the year it all started. And some of my top shelf bourbon.
From someone who is just scratching the surface education, not even investing, congratulations to you and your wife's success both now and in the future. This was certainly an inspiration to read.
@Account Closed - just keep trucking! If you want some real encouragement on that issue and to see the snowball affect:
THE EXPONENTIAL POWER OF REAL ESTATE - (a post on my blog) I go through that and why it may seem discouraging with your first and you'll goals may seem very far away, but this explains how it really starts moving
You and your wife's story is awesome!!! I'm just starting out with this in my late 30's because I've been working since before I was actually an adult and I can't say i'm any better off to be honest. Adulting is hard work...lol! I wish you continued success and just wanted you to know that I've been inspired by this post and want to get going as fast as possible!
Do you have a long term plan for your properties when they start to get older and require more to maintain? Will you start to sell properties over time?
The main thing I'm wondering about is how your cash flow will last until the end of your life time.
Do you have a long term plan for your properties when they start to get older and require more to maintain? Will you start to sell properties over time?
The main thing I'm wondering about is how your cash flow will last until the end of your life time.
Thank you.
I'm not concerned at all
1) My properties are already old and I have big cap-ex all the time. My numbers factor a very high expense ratio that is representative of that. So my expenses should only go up along with inflation.
2) Inflation also helps. Say it's year 18 of the 20 year mortgage. My rents are now whatever 18 years of inflation puts them at. My payment is still the same as when I started.
3) 20 years from now: not only have I had inflation to increase the rents, all mortgages would be paid off. You can imagine how much I pay the bank every month.
So I don't see a concern at all given those things. Even if all that weren't enough, I've stated a few times in this thread that I will continue to search for deals because I enjoy that. So I'll have more anyways, but it wouldn't be needed IMA (in my analysis - lol)
@Austin Fruechting Congrats! Hope I can do the same one day. Very inspiring, it's encouraging me to take more risk because I tend to play it safe.
It's only risky if you don't know what you are doing. I've used short term debt and credit cards before to make a deal happen and didn't feel it was risky because I truly knew what I was doing. Do I recommend that to others? Not usually, but if you know enough, it's not risk.
I'm conservatively aggressive. I know my stuff. I run all my numbers more conservatively than what I actually think (such as I run average monthly expenses when calculating cash flow higher than I actually think they'll be, I've run many remodels and I always factor high on the costs, etc). If the deal is still a great deal I would be super aggressive and do whatever it took to make it happen.
@Jon B. - no guru programs, just a lot of books. Any and all. I've read at least 20. Pull little bits and pieces from each to create a system that works for you, your goals, and your market.
@Rich Hupper - nope. The math was so clearly in favor of real estate I don't feel the need to headge against it (especially since I'm a cash flow investor that doesn't care about appreciation at all)