BP Podcast Math Error?

[Greg Scott]

I recently listened to the Podcast with David, Rob, and guest Yamundow.  https://www.biggerpockets.com/...This woman is a truly exceptional woman that has accomplished some amazing things and overcome some incredible hurdles.  I don't want to take anything away from her with this post.  

The headline says $80K/mo in cashflow and they talk about it during the podcast. Even the veteran investor-hosts missed the far-fetched number.   That surely is an amazing number, because that would mean your rent properties are putting almost $1M/yr in your pocket. 

Hmm.  That math doesn't seem to add up.

$80K per month cashflow across 34 units means the average unit is generating $2,350/mo in CASHFLOW. Admittedly, she had some small mortgages, she still has taxes, insurance, repairs, and vacancy expenses.  Conservatively, you are looking at $4,000/mo in revenue per unit to achieve $80K per month in cashflow.  While $4K might be a reasonable rent for the mid-term rentals, I doubt the Section 8 homes in Illinois and Ohio can bring in anywhere near those numbers.

Conclusion:  The $80K/mo is more likely revenue, not cashflow

[Nathan Gesner]

LOL! David addressed this recently in a podcast on a different platform. The reality is, nobody investigates the podcast guests to see if their claims are true. If they say they make $100,000 a month wholesaling in a town of 500 people, that's what the podcast rolls with.

I've seen some guests over the years that have been pretty far-fetched. I remember one of the first podcasts I watched (probably in the first 100 episodes) where a young guy claimed to make $10,000 cash flow per month. About 2/3 of the way through, it was discovered that he was only counting his mortgage and interest, no other expenses. I could see a slight change in Brandon's face when this was revealed, but they kept rolling as if it wasn't an issue. 

When I take marketing pictures of a rental, I am trying to portray an accurate, visual description of the property but my intent is for the viewer to come see the property in person because pictures don't always tell the whole story. I see the podcast as the same. They give information they think is accurate, hoping it will encourage viewers to visit the page and learn the whole story so they can be better investors.