Trying to retire; created additinal $7000 a mo cash flow 4 years!

Trying to retire; created additinal $7000 a mo cash flow 4 years!

Rental Property Investor · Corvallis, OR · Member since 2018 · 840 posts · 1k+ votes
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. 2 of my greatest joys in 2019 though were the birth of my grand daughter and doing the Trifecta, 3 Spartan races with my older son!
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Kerry BairdPro Member
Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
6y

Well done! It does take more hustle than most realize. I love that your path has been here a little, there a little. We grow, we learn and we change paths as needed. 

I also have been doing multiple strategies. It takes a lot of single families to get enough cash flow! It was brilliant to pay off your primary. We haven’t done that yet, but will get crackin’ on it soon. I find it very encouraging!

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  • Kerry BairdPro Member
    Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
    6y

    Well done! It does take more hustle than most realize. I love that your path has been here a little, there a little. We grow, we learn and we change paths as needed. 

    I also have been doing multiple strategies. It takes a lot of single families to get enough cash flow! It was brilliant to pay off your primary. We haven’t done that yet, but will get crackin’ on it soon. I find it very encouraging!

  • Specialist · Meadville, PA · Member since 2018 · 12 posts · 3 votes
    6y

    Great Job! I'm newer to REI so I love reading these inspirational stories that people share. I just got my first mulit fam 4 unit in the summer of 2019 and hoping to buy 2-4 more this summer of 2020. Congrats on the grandchild also, thats very exciting! My wife and I are expecting a baby girl in 2 weeks!

  • Rental Property Investor · Corvallis, OR · Member since 2018 · 840 posts · 1k+ votes
    6y

    @Kerry Baird thank you! Keep pushing, but determine your FREEDOM number. I am struggling with that one.

  • Rental Property Investor · Corvallis, OR · Member since 2018 · 840 posts · 1k+ votes
    6y

    @Shawn C Steider. Well done! Stay the course and congrats on your upcoming child!

  • Shiloh LundahlPro Member
    Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
    6y

    @Todd Powell Congratulations on your successes over the past 4 years. Sometime it can feel vulnerable to share successes in a forum like this. Sometimes it is either not taken the right way or nobody responds. At my wife’s high school reunion one of her friends shared that he was investing in real estate and we had a good discussion going. He shared that he had 3 units and then he asked me how many I had. When I told him how many I had at the time (around 80) he wasn’t sure how to respond and the conversation sort of died out. I’m becoming more selective with whom I share my successes with because most people don’t know how to respond.

    As far as what is next, developing a plan for the next phase of your life sounds like what is next to me. I believe we should plan our exit strategies before we enter into something. It helps us keep our purpose in mind and it is easier to recognize when we are finished. My goal is to get to 20k in passive monthly cash flow by the end of 2022. Then I can stop running as fast as I am running right now.

  • Rental Property Investor · Corvallis, OR · Member since 2018 · 840 posts · 1k+ votes
    6y

    @Shiloh Lundahl. I love this! You are right, and I was reluctant to share with so much transparency. That is funny how you shared the 80 units, and the contest ended for that guy. Lol. I am humbly thankful and trying to consider my next steps. Thanks for sharing !

  • Real Estate Agent · Los Angeles, CA · Member since 2019 · 20 posts · 44 votes
    6y
    Even though you're tired your story is very encouraging to a newbie like me.  Keep working and keep us updated!
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