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.

[Mo Powers]

Amy...congrats! That is terrific especially raising kids to boot! Our twins are almost 14 and getting to the "helpful" age! You are an inspiration...how'd you manage the kid/work balance? It's so hard not to do all the work oneself when you have the skill set....you're smart to have found the tipping point to start utilizing others services ie property management, repairs etc...thanks for inspiring the rest of us! : )

[Cody Smith]

Congrats !! That's awesome, what is your next goal? Keep up the good work, and keep us updated

[Jen L.]

Thanks for sharing your story and by breaking it down step-by-step!  It's extremely helpful for me to know that a 5-unit here and 4-unit there will get you this amazing goal.  I'm going to set the same goal :)

Congrats & keep it up! 

[Keely Marshall]

That's awesome ! So happy for you !

[Amy A.]

@Mo Powers Thanks!  The kid/work balance was really difficult, but once they were old enough to leave at home alone my investing really took off.  One time an angry tenant (he thought he was getting his entire deposit back that day) ran after my car spitting and swearing while my youngest child was with me.  That was pretty scary.  Now I have the kids help out, but they are often reluctant unless they are saving money for a specific thing they want.  My 14 year old filled 2 huge dumpsters with debris from a house we flipped, so kids are capable.  Eventually I want them to work for other people as they figure out what they want to do in life.  As for future goals, it's going to take a lot more cash flow to pay for college, so I'd better double it to $200k per year!

[Mike Dymski]

Originally posted by @Amy A.:

@Mo Powers Thanks!  The kid/work balance was really difficult, but once they were old enough to leave at home alone my investing really took off.  One time an angry tenant (he thought he was getting his entire deposit back that day) ran after my car spitting and swearing while my youngest child was with me.  That was pretty scary.  Now I have the kids help out, but they are often reluctant unless they are saving money for a specific thing they want.  My 14 year old filled 2 huge dumpsters with debris from a house we flipped, so kids are capable.  Eventually I want them to work for other people as they figure out what they want to do in life.  As for future goals, it's going to take a lot more cash flow to pay for college, so I'd better double it to $200k per year!

 I can't get my kids to fill their own trash cans...

[Vamsee Lella]

Congratulations and truly inspiring!!

[Amy A.]

@Mike Dymski LOL, I feel your pain!  Sometimes getting kids to work is harder than doing it yourself.  I also couldn't get tenants to put cigarette butts in the can - they would leave them on the ground next to it.  

[Ramon Oropeza]

Amy, what a wonderful achievement!, congratulations. I'm just starting. Flipped 4 properties so far...this is great fuel for the soul!!

[Julie Hassett]

@Brandon Turner - can you put @Amy A. on one of your podcasts? More female-centric REI success stories are always good! :)

[Kristopher Hanks]

Another amazing story. Nice work.

[Christopher Gadison]

Amy keep up the good work!

[Andre M.]

This is inspiring! This is helpful for a newbie to read and get tips and map out their own route. 

[Brandon Turner]

Hey @Julie Hassett and @Amy A. feel free to send it here: http://biggerpockets.com/guest 

[Keely Marshall]

That's awesome ! Congrats!

[Ruth Bayang]

So inspiring... thanks for sharing!

[Keely Marshall]

Amy A. Congrats! So excited for you ! & yes , been there with the bad tenants sucking the life out of you & my then husband made me be the bad guy cause he sure wasn't going to do it & our daughter was young at the time as well ! Burnout is a real factor to consider so congrats on trudging forward & meeting your goal !

[Matt H.]

Amy,

Love your story and I am proud of you, really good work. And as an aside Maine seems like a magical place that I want to visit.

I would suggest you include a management figure. I am all for self managing I manage all mine plus a lot of others. I just charge myself management so I know what the properties would make if I had to hire someone. Whether you actually pay it or not doesn't matter. In your case sounds like you will still be at 100k this year anyway. Then you will have you passive
in come figure and the management income figure which you earn by working or can outsource if necessary.

And I will also share with you what happened to me and your mileage may vary. I set a goal just like yours. Right when I achieved it I decided I deserved a second home. New goal needed. Then shortly after my wife decided we deserved a nicer primary :) Goal moved again. Plus you will find it is easier to make more once you get going. You probably found that already. You just have the knowledge and the network and it all just really starts falling into place. As they say the first million is the hardest.

Congrats again, really like the story.

Matt