Low cashflow on SFR's/Staying motivated in the beginning

[CJ M.]

Hello everyone,

Haven't posted much in a while, but was thinking about the ups and downs I've personally experienced in REI and how I stayed motivated when financial freedom seemed so far away in the beginning.

I remember my first BRRRR...I spent every dollar in the bank (I was also working a 1099 job to cover personal bills after getting laid off from a W2 job). After the refi was completed, I thought "Wow, that's cool I got all my money back, but my estimated 'net' cash flow is only like $250(ish)! Was all the stress and sleepless nights worth it for so little?? That's nowhere close to the income I need to 'retire'!!" Then my logical brain kicked in and changed the way I thought... I said to myself, "You know what, $200 covers my car payment every month! So now it's like having a 'free' car!" I was a bit happier! After the next rental (duplex) I thought "Sweet, this now pays for all of my personal utility bills! So now I have a free car AND I don't have to pay utility bills!" The next rental covered my personal HOA fee, the one after that my car insurance, gym membership, and a couple other bills. Finally I got to the motherload...my personal mortgage payment! That took a few properties to cover lol, but it happened! So eventually all of my "must pay" bills were covered along with living expenses (food, gas, etc.). The reality is, it takes time, with risk and stress levels (varying by ones tolerance) that can de-motivate you along the way. If you find yourself losing faith, try to break each success/rental down into small chunks like "123 Robin avenue now pays for my car," etc. Also, still to this day, I make it a priority to go out to a nice dinner or have a couple drinks to celebrate anytime I purchase, sell, or refi a property. You must celebrate the wins, because you deserve it!

Now, all that said, reaching financial freedom isn't even where it gets even more fun! (imho)...

Once you have enough rentals paying for your basic necessities, your subsequent purchases can then help pay for some "fun" things you've always wanted in life...vacations, a nice watch, your dream car, extra donations to your church/charity, pay off mortgages (if you choose), or maybe you just continue to re-invest. You'll find yourself asking "how many rentals do I need if I want to buy <INSERT FUN THING>?  It's a blast knowing the cashflow from each property purchased going forward, can be used on whatever the hell you want!...because you are already living financially free.

So those are some quick thoughts and hope they help motivate someone out there. Hope everyone is doing well and finds their own version of success, whatever it may be! Cheers!