Met my $100k cash flow goal!

[Amy A.]

A few years ago I set a goal of $100k of rental cash flow per year. This month (it's only Sept!) I made it! Started in 2007 with a 5 unit, another 5 unit in 2008. Tried to sell around 2010 due to frustrating tenants, thank goodness they didn't sell! Added a SFH in 2012, a 5 unit and 4 unit in 2013, and a 12 unit in 2014. Did tons of capex in 2015, and now have met the goal in 2016!

I earned my down payments by fixing and flipping foreclosures.  I have done 17.  Now I realize my goal was too small and am under contract to develop a mixed use commercial property and purchased another 4 unit this year.  These will be professionally managed as I give up management duties of the portfolio little by little.

Of course, I couldn't do this without my husband who is the "second set of eyes" on the numbers and is my (often reluctant) emergency plumber.  We always agree before we purchase anything, except for one foreclosure that I bought online, but he wasn't mad when we made $37k.

[Joel Owens]

When you say 100k cash flow annually are you talking 100k gross income or 100k profit after expenses and debt service but before taxes?

What is your debt load to generate the 100k annually?

[Sherry Byrne]

Congrats! I know how good you feel. Way to go!

[Jay Hinrichs]

@Andrey Y.  figure 250k a year plus or minus and mostly plus and you will be flying above the clouds in pressurized comfort at 325 to 425 knots... but still can't go from the islands to the mainland .. .your cost just doubled  LOL...

[Michael Mullins]

Amy A.
OK Amy when are you coming out with your book? It's time to teach others your magic.

[Andrey Y.]

Originally posted by @Jay Hinrichs:

@Andrey Y.  figure 250k a year plus or minus and mostly plus and you will be flying above the clouds in pressurized comfort at 325 to 425 knots... but still can't go from the islands to the mainland .. .your cost just doubled  LOL...

 Do you mean, you would need to budget $250k per year to do that.. Now, that is very general. How many trips per year and how many miles per year are we talking?

[Alexis Guini]

Congratulations! That is one of my goals, reach that number in 5 years or less... Thanks for sharing!

[Ramon Jenkins]

congrats

[Curtis Crays]

That's amazing!

I'm inline with the others that say we all should be setting goals!

Glad to read your resetting yours since meeting the $100K mark

[Jennifer Beadles]

@Amy A. Love your story! My husband and I own 14 units and our annual cash flow is at $64k so we're getting close to the $100k. We're in the same boat, my husband is my handy man for all of our rentals.

One time I bought a property at the foreclosure auction on a friday and forgot to tell him until that night at dinner... he got mad for a second too until I told him we bought it zero down (using BRRRR) and that it made $750 cash flow per month :)

It's great hearing about other couples like us!

[Jay Hinrichs]

@Andrey Y.  you don't measure in miles you measure in hours.  to rent your average small jet is about 4000 to 5000 and hour.. to own it would be low side 2000 to 3500 and hour.. this includes the chicken  guts feathers and all !...   And frankly many of my friends that I know that own jets ARE I the Real Estate business in one way or the other.. mainly builder developers..  and most small jets missions are 500 miles or less..  when you talk trans con jets your talking a whole nother league.

If you remember Duncan somebody on this site a few years ago kind of controversial.. but one night he said his G 4 cost him 3,000 a month I knew right them and there he was a big phoney.. called him out on it and he was soon gone. a G 4 is more like 25,000 and hour.. So when you see the movie stars and big time sports celebs flying form new York to LA in their G 4 they spent a cool 100k one way or tad more.  One of my buddies here in Oregon who is the CEO of a big lumber company they have a G 2 and its at his disposal.. lucky guy..   all of these are way out of my league.

But I do want a pressurized plane for my next one.. and that will be about a 2 mil purchase and 10 to 15k a month to keep and fly.. my little cirrus is about 3k a month if I look at the last 10 years I have flown it and that was only 450k to buy..

[Nancy E.]

Hello @Amy A.

Congratulations on reaching your cash flow goal! Keep up the good work and continue to post updates. We enjoy reading success stories...

From Nancy

[Tawa W.]

Awesome. Congratulations on the milestone!

[Dionisio Polanco]

Wow that's awesome congratulations

[Marci Stein]

Beautiful work! are all your rentals in maine near you?

[Mike Burwick]

WOOT! Awesome to reach that goal!

[Kevin Andrews]

Great job Amy. Congratulations!! 

[Shital Thakkar]

@Amy A. Congratulations....!! Very inspirational...

Can you please provide mode details like Purchase price, Rent, Taxes and if possible pictures of properties, for our knowledge.

[Tom Tran]

That's very inspiring keep it up! 

[Account Closed]

You are singing my goals and it's great to know its reachable! Thanks for that run down of events. It motivated me.

[Amy A.]

@Joel Owens It's actual cash flow so far this calendar year. I did a lot of CapEx last year and have had no vacancy or CapEx this year, so that helped a lot. These are also self-managed, so no management fees (except for my new 4-unit purchase). My total debt is about $875k. I'm on target to reach $130k cash flow for 2016, but realize that I've been lucky this year and will have more vacancy and CapEx in future years.

@Shital Thakkar Rents range from $576 to $900 per month.  Vacancy has been zero this year, and with the mild weather and low oil prices, my expenses (not counting mortgage) have only been about 30% of income.  That will increase as the weather gets cold since I pay for heat and plowing.  Purchase prices ranged from $22k to $50K per unit.  Maine has among the highest taxes in the nation, at about 2% of value.

@Jennifer Beadles it's nice to know that there's another woman out there who gets in trouble for buying houses without discussing with the husband instead of cars or other depreciating assets!  I'm often the only woman at real estate auctions too, but stay out of trouble for the most part.

@Michael Mullins if I wrote a book, people would buy it for the tenant stories.  There's a whole world of strange people out there...

@Marci Stein yes, all are within a 25 minute drive, but I'm looking to expand south and hire management.  It's hard to give up control to management after working so hard!

[Debbie G.]

@Amy  thanks for including these extra details!  Great job with your successes!

[Susan Carman]

woo hoo! Keep it up!

[Michael Henry]

Amy, Nice job on meeting your 100K goal and the stick-to-itness to get there. Now what's the next goal lol?

Thanks for sharing!!!

MH

[Christopher Gadison]

Congratulations!

[Michelle Suiter]

Hi Amy A. Congrats on reaching your goal. What's next? Bigger and better!! Continue to thrive!!!