I have been FUNemployed because of REI

[Josh Calcanis]

A short year and a half ago, I was dreaming of investing in real estate. I spent time living in both Los Angeles and Seattle for work and had been spending time looking at properties, but never pulled the trigger. Partly because I was afraid and partly because I felt I didn't know enough. I went to Europe in 2015 and met someone who was in the same boat. After speaking with him and finding BP, I decided it was time to really step up and take the plunge. After realizing Seattle was not the market for me, I decided to go to something I knew... Orlando, FL. At first I needed to find a trustworthy, property manager that would act more as a partner in this business. It took a few phone calls and two meetings in person before I finally settled on one. 

My first SFH was purchased and placed tenants within a month. Purchased in September of 2015. We had to lower the rent more than I had liked to get tenants in because it was close to a college and it was in the middle of a semester. Once the year ended, the lease was up and we bumped it back up to $2100. Tenants were in place within 1 week. Things I would have avoided there was doing little research on what the HOA actually covers and actually getting a property with a pool. Although the pool hasn't been too much of a problem, it's still an expense in terms of keeping it clean and operational.

My second property was closed on prior to Christmas. It was a triplex and was part of an estate sale. Owned by the two children that wanted nothing to do with it and because of that left the rent far below market. All three tenants were paying $890 and market rent in the area was $1300. There was a little termite damage, but nothing that was compromising the structure (super common in Florida). We got the property with closing costs and repairs paid by the owner. 

When I first looked at income from both properties, the total was $400-500 in cash flow. As of right now we are sitting at cash flow (after debt service) of $1400-1500. 

Although I'll be looking for another job here shortly, I was able to leave a job I wasn't happy at, travel to South America, explore the states, and spend some time working on the properties because I was getting paid by the time I had put in. Also coming out of a sales job, I had plenty of savings to float the properties in a bad situation and continue to live if I wanted.

This time away from a 9-5 just gave me a taste of what REI can do for the everyday person and I can't wait until I'm really free of the rat race! It so much easier to express how amazing REI is when you've lived it.

[John Thedford]

@Josh Calcanis

Great for you finding the path to sustainable income. I got started (again) by "accident" (it wasn't planned) in 2012. Timing was right. I found a few deals that fell into my lap. Today--a short 4+ years later--2M in holdings, a small portfolio of hard money loans, and the ability to never "work" again. I am very aggressive when I make new purchases with 5 years straight am private money mortgages if needed. Therefore, a couple of my properties have -0- cash flow but will be free and clear in about 3 years (maybe less if I decide to prepay on them). I see lots of agents (I have my license) work LOTS harder than I do and make less money. My slogan these days is: I don't need a job, I just need the money:) Some people get it...and some don't. Those that do are usually other investors that have built sustainable income for life.