How I Created an Additional $7,000/Mo. Cash Flow in 4 Years!

[Todd Powell]

Writing this to encourage, not brag! In 2001, I started flipping and did maybe 25 or so. It was tiresome, while also coaching two basketball teams, and maintaining my sales manager W2 position! I switched jobs in the 2009 economy fold, and probably messed up as I did not do any RE investing for 7 years, other than investing as a minority partner into a 72 unit college property using our HELOC for $202,500 as our portion of down payment. In 2016, I met with my son and financial advisor, and he informed me that we needed to hustle to replace income if I ever planned on retiring. So, in the last 4 years this is what I have accomplished; 1) flipped around 12 properties 2) bought into 5 plex in Lebanon 50/50 with my son for $375,000, rehabbed some and increased rents to market. 3) bought into 8 plex in Forest Grove 50/50 with my son for $642,000, rehabbed all 8 units and at market rents. 4) sold 5 plex in Lebanon by owner for $545,000 and invested into Crowdstreet Opportunity Zone in Atlanta, Ga. 5) bought fixer 4 plex in Albany, Or rehabbed, and rented at market 6) bought 2 fixer 4 plex's near Western Oregon college campus, rehabbed, and rent at market. 7) started hair salon, pretty much failed, and got rid of it 3 years later. 8) refinanced 8 plex and pulled out $100,000 on my portion to pay off debt. 9) Majority partner refinanced 72 unit building and received $145,000 I used towards debt. I accumulated lots of debt during this 4 year period, using my HELOC for down payments and rehab work to get to market rents. I now have worked hard to pay off the entire $421,000 HELOC, so my personal home is now FREE and clear of any debt. I was cash flowing $8000 a month from this work the last 4 years of creation, but down to $7000 as we sold our Lebanon property, but I avoided CAP gains this year with the opportunity zone, which is a 10 year hold. I am tired, but this can be done IF you put your mind to it! So, I now average $13,000-14000 a month positive cash flow, after Capex and monthly repairs. That number also includes $3000 or so a month from stock dividends on an account worth around $800,000. I am 52 1/2 and after 30 years in the same industry, trying to figure out what I want to do. My career, I have to work Saturdays, and with a new 9 month old grand daughter, I am less than thrilled to have off Fridays and Sundays. I ask myself, "how much is enough?" Maybe its a mid life crisis question, but it is real folks. I am currently looking for a decent flip but the well seems to be dry. I am thinking maybe more one good buy and hold might be smart before I hang up my W2 job. I wanted to share my story because nothing is easy out there. I am have been grinding since 2001, but taking off 7 years, and probably the years I should have NOT taken off! Even in a hot RE market, I have worked hard to find off market deals, and worked hard to get sellers to carry the contract. Some say I am LUCKY, but that probably true. I like to say I am BLESSED. But, I define LUCK as Labor Under Correct Knowledge. My advice is to always be grinding, and do not look for excuses. I had no family support or money, I just started with reading books long before there were any HGTV shows out there. I sit here on a slow work day on a Saturday I despise, so I wanted to encourage you to reach your dreams, and also find a number that would actually make you happy. Money cannot buy happiness, but I am looking for my FREEDOM number, but health ins concerns always clog my mind. Curious of your thoughts and your story, no matter how big or small.