I love paying the bank for my small multi's

[William Collins]

Do you ever feel like a gigantic bank-paying machine? But seriously have you run your numbers lately? When I break down the numbers and look at what I am paying to the banks to finance the assets that I'm controlling at this point in time they make five times what I make.

But I'm happy about it? No, seriously I am so glad about it. I have amassed a portfolio worth $1 million more than the initial investment. Sure I'm paying about $32,000 per month to the banks. But at the same time, I am making a whopping $5600. This is me being honest and transparent because the rest of what I'm making is accounting for things such as vacancy and repairs and property management.

It also shows the power of inflation in a positive sense for investors. If I raise My Portfolio by $100 in rent per unit this year I will double my cash flow. If I can sustain a 50 to $100 increase per year for the next five years I will have tripled my cash flow at least or put another way make somewhere between 14,000 per month 28,000 per month.

My small portfolio which I share with my cousin in Connecticut within the next three years we'll be able to sustain both our families moving forward. And that's with no reinvestment or acquiring anything else.

For those of you who are FI inclined, I'm already coast financial independence from my day jobs 401K combine this with a robust rental portfolio and it really begins generating generational wealth.

Are you happy with your investments?

[Jim K.]

I just had a conversation about rent-to-income ratios with a social worker I know. Out of nowhere,  she started complaining about her mortgage payment. She pays $1200/month for a three-bedroom in a nice, safe neighborhood. Her biggest problem, "$450 of that goes for interest! That's how much the bank makes!"

I just pulled the phone away from my ear and stared at it. Then I quietly agreed it was a lot, let her rant a bit more, and hung up.

$450 of $1200 goes for interest. That's what she's paying to finance her purchase of this house. What this social worker doesn't seem to understand is that the rest of it goes right back into her pocket as equity in the home. How many landlords would offer a $450/month rent-to-own agreement on a three bedroom house IN ANY NEIGHBORHOOD IN AMERICA, let alone a low-crime suburban municipality with a good school district like the one this person lives in?

Instead of whining about her mortgage, she should be bringing her banker flowers every day and champagne when it rains. Almost all of my tenants would kill for a deal like that. But she just can't think through her mortgage without fixating on something, anything to feel self-pity over.