Implementing BRRR in Order to meet 45th Birthday Goal

[Brian Larson]

**This is the intro to a possible multiyear diary. Sorry for the long first post, I wanted to give context. My goal is to update this every month when I update my personal balance sheet**

So today is my 38th birthday. I do not mention this because I want a nice comment or seek something, I mention this because I use my birthday as my fiscal year. I have set a goal to be able to retire/full-time invest starting on my 45th birthday (if I choose to do so...I love my current day job so maybe I will do that forever). So my fiscal year runs 11/1-10/31 when I do budgeting and planning for my family/investments

As I track towards my 45th birthday, I have set some very clear goals ahead of myself.

• Earn $10k in Passive Income per month by 10/28/2022
• Have a Net Worth of $2M by 10/28/2022

I have been tracking against each of these numbers off and on for a few years but have not been crystal. About 9 months ago I read the Millionaire Next Door and it helped crystallize where I am today and then a combination of BRRR and the Millionaire Next Door made the steps necessary to hit my target net worth today and tomorrow tangible. (you can see from chart below that I am where I am supposed to be per the formula)

I plan to get where I need via 2 asset types:

• Rental Properties (SFR/MFR) - leverage BRRR in order to buy and rehab for cash then refi into portfolio.
• Notes - First Position with a minimum yield of 13%

And have set some minimum goals to how I now acquire each of these assets.

• Rental Props - add 6 units that average out to $150/mo cashflow and $25k equity per unit
• Notes - Add 2 notes of $25k or greater that yield the above 13% minimum

My acquiring with these numbers I will add $200k in net worth and $1,520/mo passive income per year which will in turn yield the growth I need. See below You can see where I am today and where I want to go. So, with that, I hope to post lots of additions over the coming year as I need to add 8 assets this year (starting 11/1) and have already begun the process. Stay tuned Last note: I have uploaded my acquisition sheet that you can edit to your own liking. It may not be perfect for you as it only goes out 7 years but you can add more data/rows as needed. Acquisition Tracker Thanks for reading brian

[Mike H.]

Thats funny that you hit on those numbers 38 and the goal is to 45.

I bought my first intentional rental at age 38. My initial "dream" goal when I started was to hit 10 houses - 1 a year. I actually thought that was pie in the sky when I set it. After I did my first one, I was hooked. I set a new goal of 3 a year. I hit that almost every year. It wasn't as easy it sounds given how there were no lenders wanting to lend in SFH investment properties during the bust.

But fast foward to now when I am now 45......

I have 51 houses (#52 under contract).  Once these recent purchases are rehabbed and put into service, I'll have a net income of roughly 13k a month. And my net worth is a little over 2.5 million. 

One thing I would add thous is doing 3 a month would not have gotten me to this point. As the financing environment loosened back up about 3 years ago, I jumped from 3 to 6. And then to 10 and then to 18...... 

It was a crazy run. But your goals are very doable. 38 to 45, I went from 0 a month in rental income to 13k net per month. And I went just above your net worth goal.

Given that you have a pretty good head start, I'd bet just about anything you can double your numbers and thats probably where you are going to end up when you're 45..... 

Good luck. But I would definitely recommend sticking with it. Its not always easy. But when you get there, you'll look back and have the kind of options in life that no other investment vehicle on the planet outside of real estate could have offered.....