Breaking Even is a Lie | Mentoring Preston – The Industrial Salesman – Session 1


This is mentoring session #1 with Preston – The Industrial Salesman. Preston lives in Mobile, AL, has dabbled a little into real estate and unfortunately has had some partners that didn’t work out.  His fiancé is onboard with the whole real estate investing idea (KEY!) and main goal this year is to add $4,000 in Gross Passive Income from rentals. 

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Key Takeaways:

  • Long Distance Investing – What Are Your Thoughts?
  • Where Do I Start to Raise Money?
  • What Would You Tell Your 25 Year Old Self?
  • Spend Time Developing Investing Criteria
  • Where is This Hot Market Going?

Episode Affiliate:

Links mentioned in this episode:

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Gary Vee’s Voice is Annoying | Mentoring Nick – The Corporate Recruiter – Session #2


This is mentoring session #2 with Nick – The Corporate Recruiter. Nick currently lives in New Hampshire but is in the process of relocating his young family to Texas and with one turn-key rental in his portfolio, he is looking to house hack a small multi-family. 

Subscribe to our podcasts and THANK YOU for providing a Rating & Review on iTunes. It takes about 2 minutes with this link.

Key Takeaways:

  • Primary House Under Contract – Buyer Wants Most of The Furniture
  • Facing Your Fears, Focusing on Constructive Criticism
  • Atlanta is an Hour Away From Atlanta
  • Being Honest When Cancelling a Hotel Room Will Cost You
  • Radeon Air Inspection 
  • Stronger Offers = Larger Down Payment
  • Using LinkedIn to Expand Your Network

Episode Affiliate:

Links mentioned in this episode:

Forever Home and Dream Home Are Absolutely Obnoxious | Mentoring Eric – The Small Business Owner


Today I’m joined by Eric, small business owner near Palm Springs, FL, for his first recorded mentoring session. Eric has never purchased a house but is anxious to get into REI so he can pursue more time being a missionary with his church and other organizations he is involved.

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Key Takeaways:

  • Rich Dad Poor Dad is foundational, required read.
  • Real Estate puts a positive mark in your asset column that helps with tax liability. 
  • The phrases Forever Home & Dream Home are absolutely obnoxious. 
  • Goals change as you progress through chapters in your life. 
  • Eric walks a duplex with an inexperienced Realtor. 
  • Eric looks for partners for a down payment. 

Episode Affiliate:

Links mentioned in this episode:

The New England Patriots Love Winning | Virtual Coffee with Gino Barbaro


Today I’m joined by Gino Barbaro from JakeandGino.com. Gino is an investor, business owner and entrepreneur. He has been investing in real estate for 15 years and has grown his multifamily to over 1100 units in just 6 years with over $70MM in assets. Gino is the best selling author of ‘Wheelbarrow Profits’, graduate of IPEC, a Certified Professional Coach and currently resides in Florida with his beautiful wife and six children. 

Key Discussion Points:

  • How Gino Sets Goals
  • Equity Hounds
  • Ultimate Goal of Financial Freedom
  • How / When to Teach Your Kids About Financing & Saving
  • Accepting Societal Change Input From Your Kids
  • The American Dream is Dying, if not Dead 
  • Gino’s Best Advice to Raise Money
  • Gino’s Best Advice to Stop Exchanging Time for Money
  • Gino’s Thoughts on Market Direction and if He is Worried

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Books Mentioned in this episode:

Links mentioned in this episode:

Breaking Even is a Lie – Mentoring Preston The Industrial Salesman


This is mentoring session #1 with Preston – The Industrial Salesman. Preston lives in Mobile, AL, has dabbled a little into real estate and unfortunately has had some partners that didn’t work out.  His fiancé is onboard with the whole real estate investing idea (KEY!) and main goal this year is to add $4,000 in Gross Passive Income from rentals.  

Subscribe to our podcasts and THANK YOU for providing a Rating & Review on iTunes. It takes about 2 minutes with this link.

Key Takeaways:

  • Long Distance Investing – What Are Your Thoughts?
  • Where Do I Start to Raise Money?
  • What Would You Tell Your 25 Year Old Self?
  • Spend Time Developing Investing Criteria
  • Where is This Hot Market Going?

Episode Affiliate:

Links mentioned in this episode:

Every Day You Are Building Wealth or You Are Not with Holly Morphew


Today I’m joined by Holly Morphew. She is a successful Financial Coach, Real Estate Investor and published author. Holly began teaching personal finance in 2006 as a service project with Rotary International. She received the prestigious “Rotarian of the Year” award in 2007/08 for her work in financial literacy. After a successful career in real estate and finance, Holly founded Financial Impact in 2016. Holly is recognized for her unique approach to money, which reinforces core values while creating wealth. Through workshops, courses, and masterminds, Holly has coached thousands to peace of mind and confidence with their money.

Subscribe to our podcasts and THANK YOU for providing a Rating & Review on iTunes. It takes about 2 minutes with this link.

Key Discussion Points:

  • Hiking Fourteeners and Finding Plane Crashes
  • Difference Between Financial Coach & Financial Advisor
  • Missing Link to Financial Education
  • Go To School, Be a W2 Earner, Consume Debt – NO!
  • Establishing a Lighthouse Fund
  • Consumer Debt is a KPI of Our Economy
  • Know the Highest/Best Use of Your Time/Income
  • Discover Your Impact Factor
  • Buying Rental Properties on Credit Cards?
  • Performing vs. Non-performing Debt
  • Pillars of Financial Independence
  • Seasons of Building Wealth

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Contact:

Links mentioned in this episode:

My Morning Routine

  • 4:45 a.m. – Get up, put on some work out clothes, splash water on my face and drink a 16 oz cup of water
  • 5:00 a.m. – light workout (7 minute routine or quick jog)
  • 5:15 a.m. – Meditate for 10 minutes
  • 5:30 a.m. – focus on today’s real estate entrepreneurial tasks while consuming an audio book…also drink more water
  • 7:15 a.m. – breakfast with the family and, of course hygiene!
  • 7:45 a.m. – first call for the W2

So let’s walk through this in more depth, but before we go any further let’s clarify some things. I’m not a perfectionist and I’m not striving for perfection, I AM striving for excellence. This is meant to be a guide and a plan. Having 2 kids, 4 years old and under, with a 3rd on the way has its challenges of keeping any sort of routine, and this is why I focus on doing mine early in the morning before the rest of the house wakes up. That and essentially at the end of the W2 day I’m typically to mentally exhausted to want to do anything else except hang out with my kids and wife.

4:45 Alarm – Are You Serious?

Yes I’m serious but don’t think I decided to one day just wake up and that was that (also to note, I’ve never been a morning person). I tried setting my alarm at 5:30 a few times but just snoozed it. Like any other workout I had to ease myself into it. So, I move my alarm up 15 minutes early for 2 weeks (do something for 2 weeks and it becomes a habit right?!). After those 2 weeks, I backed it up another 15 minutes. After those 2 weeks, another 15 minutes and so on. Just like any workout goal, you don’t decide to just walk in the gym and do it or run a 5k from the couch, you have to work at it and rising early was the same for me.

Drink More Water

You’ve seen ‘Drink More Water’ a couple of times now. The goal here is 100 oz/day. A little back story here…until I gave into my wife’s wishes, I was consuming 4-5 sodas/day with a few glasses of sweet tea for dinner. Hardly any water. But after years of chipping away, I finally gave in and decided to try what my wife has been on me about and it’s AMAZING how much healthier I feel. Now don’t get me wrong, I still drink a soda or two at lunch and couple glasses of sweet tea typically at dinner time and a rare night cap alcoholic drink but my daily water consumption is 100 oz. The reason I drink 16 oz right when I wake up is because the last time I had anything to drink was right before bed…7-8 hours ago. My body is a little dehydrated. I have another 16 oz glass (or two) right after my quick workout and within an hour of waking up I’ve consumed a third (or half, if I drink two after working out) of my daily goal. And the reason I choose a 16 oz glass, is just for easy math – 6.25 glasses of 16 oz = 100 oz.

And notice until this statement I haven’t mentioned coffee. I will drink the occasional cup on days I’m not able to go through my morning routine but I’m not particular fond of what it does to my GI system 🙂 And I’m quoted several times in saying how Coffee is your friend. Replace coffee with your miracle morning routine as much as possible.

Light Workout & Meditation

I have come to the acceptance and conclusion that my dreams of being a star in the NFL, Mr. Olympia, or competing against David Goggins running in Ultra Marathons have come to an end. However, I do want to have the energy and stamina to keep up with my kids when they want to get out in the yard and play or wrestle in the living room floor. So, my light workout routine (right now) is either a 7 minute HIIT program or a 1 mile walk/run. And I put right now in parenthesis because due to some lower back injuries (stemmed from my Uncle Rico days), I didn’t workout for a decade. I’m slowly getting back into it and my current light workout elevates my heart rate, gives me a good sweat, but most importantly wakes me up in the morning.

I go straight from my light workout into meditation. This is something new I’ve adopted in the last year and it has certainly helped with dealing with anxiety and stress. I see it as an exercise for my brain and I’m upset it has taken me this long to discover and try it out. There are plenty of apps available to assist with this and I highly recommend you find one that provides you the most affect. I use Headspace, which is free to try.

Real Estate Investing Tasks

I focus on 12 Week Goals, led by the concepts discussed in the book The 12 Week Year by Brian Moran. This is also the concept we use as a base for successfully pushing our Mastermind Group members to the next level. BUT, my daily REI tasks vary from quarter to quarter, but the important thing here is write down your goals, create those daily tasks and track your progress daily. This also includes sharpening the grey matter. I’ve read and consumed more material in the last 5 years than in my entire life (my high school teachers would be proud). I list the most influential books on the Read Page and highly recommend Audible for knocking these out while you commute, jog, or tackling that honey do list.

On The Backend…

Meaning at night time…I still strive to grab 7-8 hours of sleep every night, this means I typically go to bed around 9 p.m. If this is unacceptable for you, I go into more detail of altering lifestyle in the How I Balance post, check it out. The bedtime alarm on the iPhone keeps me in check of when to go to bed. Amazingly, most people I tell about this feature have no idea that it exists. Check it out under Clock, here’s a screen shot of what mine looks like.

Miracle Morning Millionaire

This book by Hal Elrod and David Osborn will change your life and is the centerpiece around my morning routine. We’ve tackled this in the W2 Capitalist Mastermind Group and practicing this routine will change your life. Here’s the link to the book on Amazon: https://amzn.to/2t8clHs


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Cosmic Justice – Stick to the Merit of the Deal with Dr. Marty Nemko


The Psychology of Negotiating Real Estate…Each month we focus on a different topic to study in the W2 Capitalist Mastermind and each month I bring in a virtual guest speaker who is an expert on that month’s topic. For the month of March 2019 that topic was Negotiating and Marty Nemko is the perfect guest to discuss this with us. Here is why:

Subscribe to our podcasts and THANK YOU for providing a Rating & Review on iTunes. It takes about 2 minutes with this link.

Marty’s Resume Highlights:

  • Career coached over 5500 students 
  • Author of the book Careers for Dummies
  • In his 30th year of hosting “Work with Marty” on NPR-San Francisco
  • Holds a Doctorate in Educational Psychology from UC Berkley
  • Written 12 books and over 3,800 articles on the topic of psychology

Key Discussion Points:

  • Most people want to be liked
  • Cosmic Justice – Stick to the Merit of the Deal 
  • Why you SHOULD hold onto constructive criticism
  • Why do most people struggle with identifying their own awesomeness?
  • Best written negotiation strategies
  • Why am I more interested in people liking me versus gaining the best deal and how it affects my negotiation skills. 

Episode Affiliate:

Contact for Dr. Marty Nemko:

Links mentioned in this episode:

Mentoring Brice – The Gold Mining Mechanic – Session #2


This is mentoring session #2 with Brice – The Gold Mining Mechanic in North Pole, Alaska. Subscribe to our podcasts to receive episodes directly to your mobile device. And if you’re on iTunes and have 2 minutes, please give us a Rating and Review.

Key Discussion Points for Today:

  • More of Brice’s backstory
  • Building Relationships HUGELY important in REI
  • Know the potential liabilities for any property
  • Importance of grabbing actual financials on any potential acquisition
  • Using a trusted resource to physically walk a long distance property
  • Walk EVERY unit

Episode Affiliate:

Links mentioned in this episode:

Q1 2019 Results & Q2 2019 Targets


In my year end post Reflect and Soar Higher in 2019 post, I committed to posting the results of my Q1 2019 Goals. As our focus in the W2 Capitalist Mastermind is based off Brian Moran’s book The 12 Week Year, I practice what I preach in my own personal quarterly goals. This system works. One thing I continue to say over and over is that we are not striving for perfection, we’re striving for progress. If we’re hitting perfection, then simply put, we’re not pushing ourselves hard enough. Here is how I did on my Q1 2019 goals:

Q1 2019 Goals


Accomplished

  • 4,500 Facebook Group Members: accomplished by end of February. This goal was WAY too easy to obtain and as you’ll see below I’ve increased this target substantially for Q2.
  • Launch Alexa Skill for Real Estate Investing for the W2 Employee: this was also accomplished by end of January and I’m certainly stepping it up this quarter by launching a podcast. Now I’ve put producing content for the Alexa Skill on hold as I also went to Podcast school and launched our W2 Capitalist Podcast in March.

Failed

  • 30 Active Students in the W2 Capitalist Mastermind Group: I fell short here. Primarily because we grew so fast in December I doubled the price of joining in January to slow growth as I had to get a handle on it. I did not want to let the current members down and had to do something to slow growth. This is a GREAT PROBLEM TO HAVE and I’m glad I have it. As I write this post I came up short of my goal by 8 students.


Enough of the past, let’s look to what’s ahead. Here are my goals for the next 12 weeks:

Q2 2019 Targets

That’s it! More of the same from last quarter but I’m excited about these targets and ready to get after it! EARN. INVEST. REPEAT.

April 2019 Contest Giveaway

As many of you know, last month (March 2019) I launched my podcast, the W2 Capitalist | EARN. INVEST. REPEAT.

I can’t tell you HOW EXCITED I am to finally have the W2 Capitalist Podcast LIVE. In doing so, I’ve already had the pleasure of talking to several awesome folks and you’ll be able to hear that content in the weeks to come.

Enough about my excitement, now here’s how you’ll benefit (in addition to the awesome content I’m going to bring you every week). To celebrate the launch I’m working with Raffle Copter on giving away numerous prizes:

  • (1) 12 Virtual Mentoring Sessions ($2,400 value) -> one lucky winner will receive 12 Virtual 30 Minute Mentoring Sessions. You have up to a year to claim them all so you can do once a month for a year, twice a month for 6 months, once a week for 3 months and/or combination of all.
  • (1) Mindset Calibration Course ($272 value) -> one lucky winner will receive my 6-week self-paced course designed to approach Real Estate Investing FOCUSED on YOUR WHY and YOUR PURPOSE.
  • (1) Super Comfy EARN. INVEST. REPEAT. t-shirt ($25 value) -> one lucky winner will grab one of our super comfy t-shirts and I’m even throwing in shipping. If you can’t wait until the contest is up to grab a shirt, you can go ahead and order one here.
  • (1) Rich Dad Poor Dad by Robert K. ($15 value) -> this is the book that provided me with a paradigm shift in the way I look at money and building a life for my family, WHICH is why it is the foundation of required reading for anyone I mentor.

Registration closes by April 21 @ 11:59 p.m. CST and the winners will be announced by April 23rd @ 11:50 p.m. CST.

Earn EXTRA Entries by:

  • 10 EXTRA entries = Refer your friends – up to 10 extra entries
  • 5 EXTRA entries = Subscribe, Rate & Review the W2 Capitalist Podcast
  • 4 EXTRA entries = Follow @helmsREI on Twitter (trying to increase my following over there)
  • 3 EXTRA entries = Tweet our message (this one can be done daily for 3 extra entries each time)
  • 2 EXTRA entries – Answer the 2 Biggest Pain Points question
  • 2 EXTRA entries – Answer the poll question

Good luck! And remember, EARN. INVEST. REPEAT.

If the form below doesn’t work, use this link: http://www.rafflecopter.com/rafl/display/52b1c2e40/?

Wholesalers are not Real Estate Investors | Mentoring Nick – The Corporate Recruiter

This is mentoring session #1 with Nick – The Corporate Recruiter. Nick currently lives in New Hampshire but is in the process or relocating his young family to Texas and with one turn-key rental in his portfolio, he is looking to house hack a small multi-family. 


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Key Discussion Points:

  • Intro to Nick
  • Advantages of house hacking a small multi-family
  • Build relationships with wholesalers
  • Wholesalers are not Real Estate Investors, they ARE transaction artist!
  • Amazon & Alibaba as a side hustle

Episode Affiliate:

Links mentioned in this episode:

Mentoring Brice – The Gold Mining Mechanic


This is mentoring session #1 with Brice – The Gold Mining Mechanic in North Pole, Alaska. Subscribe to our podcasts to receive episodes directly to your mobile device.

Key Discussion Points for Today:

  • Intro to Brice
  • Going from 2 units to 6 units
  • Strategy of Doubling Doors with each new transaction
  • Long Distance Investing 

Episode Affiliate:

Links mentioned in this episode:

Discover YOUR Why

I talk about this a lot, Hell it is THE challenge for Week 1 of my Mindset Calibration course. HUGELY important to know WHY you want to be involved in real estate investing. As I’ve been on BiggerPockets forums lately, I have been challenging lots of newbies on WHY they want to get started. Even when I tell them money can’t be the answer (a most certain by product if done right), the answer to the first couple of evolutions to this question is typically: to obtain financial independence (money), to have another stream of income (money), or to create wealth (money).

IT IS NOT ABOUT MONEY!!!

Money is a by-product from investing in real estate, or at least it should be if you have set proper and strict investing criteria and are patiently sticking to them. MONEY IS NOT YOUR WHY.

Real estate investing is NOT EASY, especially to start. That is why it is ESPECIALLY IMPORTANT to start out on this journey by discovering YOUR why for wanting to be involved in real estate investing. And when I’m writing about this concept typically I type YOUR in all caps to emphasize YOU. It is YOUR WHY, not your mum’s, not your dad’s, not your brother’s or sister’s nor your friend’s, it is YOURS! Focus on yourself here.

Think of this scenario. You’re just starting your pursuit for your first property, without a WHY. If you don’t know YOUR WHY, you don’t know what goals you want to accomplish and then you certainly don’t have any established investing criteria to analyze deals. And not having investing criteria or sticking to those investing criteria will get you financially into trouble. Speaking from experience, the only time I’ve lost money in a real estate transaction is due to one or two reasons (a) I didn’t have a clear picture of my Why -> Goals -> Criteria or (b) I abandoned my established criteria that supported my Goals -> Why.

Knowing YOUR WHY Establishes Your Goals

“If you don’t know where you’re going, any road will get you there.”

– Lewis Carroll

Lewis Carroll hit the nail on the head with this quote. Meaning if there is no destination in place, like most of us who mind numbing-ly just get through the work day on the corporate carrousel, you’ll eventually end up…where?

Knowing YOUR why is the cornerstone of your investing career because it will lead you to establish goals that support YOUR why and from those goals you’ll establish supporting investing criteria. Think of the waterfall affect, your investing criteria fill up a pool of supporting drops to YOUR why.

For example: my WHY equals these three:

I want to provide generational wealth for these three. And yes that is money, but its not centered around me its centered around how my kids and (eventually…hopefully) grandkids can live a life outside of financial barriers – without acting like spoiled brats :). In the more immediate future I want to provide a lifestyle for us that isn’t hindered on anyone’s schedule except ours. In order to do that, like most wealthy men and women have figured out, I have to figure out how to stop exchanging time for money. This is a 3-5 year goal for us. MUCH BIGGER GOALS beyond the 3-5 year mark have been discussed but seeing as they are not super clear and secondary, we’ll just focus on the more immediate, especially for the remainder of this blog post. And real estate is the best way for us to do that. In 2018, we made $231/hr from our rental properties.

Knowing your GOALS Establishes Your Investing Criteria

To keep our lifestyle and stop exchanging time for money in the next 3-5 years we need to accumulate passive rental income from 100-500 doors. The reason the # of doors is such a wide range is because ownership in each unit can vary based on partners and our participation level but it is somewhere in that range. So, our investing criteria is pretty simple cash flow per door is $100+/month and yields a 15% Cash-on-Cash return.

Challenge: Do The Discovery

What’s YOUR why?

I want to challenge you to discover YOUR why. And if you already think you know what that is, go through this exercise anyway. As you being pursuit for your first (or next) property, you will potentially kick over 100s of rocks before you find that gem. This can be exhausting work, physically and mentally, especially since you don’t know when you’ll reach the closing table. This process can be an emotional roller coaster (which we want to stay away from our emotions as much as possible – this is a #s game) but knowing and being very clear about YOUR WHY will help you stay grounded with your emotions and help you stick to your established criteria once you find a potential deal.

Having trouble discovering YOUR why?

If you’re having trouble discovering YOUR why, you are not alone. This is normal. You are normal! Also accept as life changes, situations change and YOUR why has the potential to change as well – I call these course corrections. Point being, discover IT right now, begin pursuit and make changes down the road. A couple of resources to help you discover:

  • 7 Levels Deep : take some time to go through this exercise. This site says 10-15 minutes, but take as much time as you want. If you’re pressed for time, rush through it and then come back and do it again once you have time.
  • Start With Why and Find Your Why by Simon Sinek: I highly recommend the Audible audio books here.
  • Our Closed Facebook Group: thousands of members willing to help. Join and engage by asking for help from people who were where you are now.

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We Earned $231/hr From Our Rental Properties in 2018

The 2018 #s are in! The biggest # we track when it comes down to it is cash flow. While cash-on-cash return comes in at a close second for priority, the main focus for us is cash flow. And while I don’t go into net worth accumulation by someone else paying down your debt (i.e. the tenants) nor do I go into tax advantages, those are hugely beneficial and worthy of their own post. Today, just cash flow. There are several rules of thumb most people use when analyzing properties for cash flow: the 50% rule, the 1-2% rule, the $XXX/per door rule, the Lobster rule, the Alexa rule, the downward dog rule, all sorts of rules. Our primary focus is $100/per door/month and 50% rules.

Wait, before we go any further most of you know I’m involved in a 42 unit apartment complex. For this exercise the 42 unit is not being considered as we are still in process of stabilizing a heavily deferred maintenance property. I’m also not sure my partners want me sharing detailed info on that asset with the world wide webs so I’ll keep this exercise to the properties just my wife and I own. However, 2019 is looking VERY promising for the 42 unit.

Moves & Acquisitions

In 2018 we sold one property (our very first rental property in Pensacola – the one we’ll never sell!) and 1031 Exchanged into a 4 plex. Other than that our focus was geared toward stabilizing a couple acquisitions that were made in mid-late 2017.

Thank You PM Teams!

I can’t say enough about our PMs. Having a full-time job and growing family (ref: How I Balance), we have very little time to focus on managing these properties, plus managing our own rentals is just not what me or my wife want to do. Thus we hire professional property managers to manage all of our properties. We have a few different property managers based on our properties’ locations being in different cities, BUT those property managers are a huge part of why our hourly # is so high. All in all, we averaged about one hour a week working with our property managers. So 52 hours a year. Thank you Team! YOU GUYS ARE AWESOME!

The Numbers

Before we get started, here are a few definitions to ensure you and I are on the same page when it comes to The Numbers:

  • Expenses column includes mortgages (if applicable), insurance, taxes, property management fees, repairs, legal fees, miscellaneous operating expenses and capital expenses. Our expenses were high this year and I get into that in more detail below.
  • Revenue column includes rent, pet fees, and late fees.

Again, I can’t say enough about our PMs and the systems they have in place to keep us abreast with situations but overall they just handle them. So here is how I came to us earning $231/hr on our rental properties in 2018:

  • 52 Hours Worked for the Year (thankful for awesome PMs)
  • $12,038 Annual Cash Flow in 2018
  • $12,038 cash / 52 hours = $231.50/hr

One goal we want our assets to accomplish are $100 cash flow per door/per month. On average we were just shy of that in 2018 so I won’t spend any time discussing that here, but I do want to address the 50% rule.

Not Meeting the 50% Rule

For those of you not familiar, the 50% rule simply states that fifty percent of your rental income should cover all of your expenses (I’m grossly summarizing for the sake of this post). And since only 1 of our properties met the 50% rule, I feel the need to explain, just how close the rest of them were and the importance of keeping separate, sacred accounts for each property to cover vacancy and the more costly, unexpected capital expense items.

  • Little Yellow House: we actually sold this property in February 2018, so only two months into the year. The sell of this property yielded a 77.5% ROI for the life of us owning this property. The proceeds from this house were 1031 exchanged into the 4 Plex – Mobile. So while we experienced a negative cash flow for the 1st two months of 2018 with this property, all-in-all, it provided a great return from acquisition to exit.
  • Duplex – Gulf Breeze: We replaced one unit’s HVAC at a cost of approx. $3700. Not having to do so would have easily put this property above the 50% rule. Thankful for the reserve accounts we established. If you’re not establishing those reserve, sacred accounts for capital expenses and vacancy, DM me.
  • 4 Plex – Mobile, AL: this was the acquisition we 1031 exchanged into from the Little Yellow House. Almost completely turn key, but we had one tenant turnover and a few large repairs to make during the acquisition process – no worries though, we bought this at a bargain!
  • Mobile Home – Pensacola: this is the property from our First Tax Deed Auction. It had a rough 2018 with a tenant turnover, vacancy, a HVAC replacement and some fairly major plumbing issues resulting in >$3k in expenses. 2019 should be a strong, stable year for this one.

In closing, 2018 was a profitable year and I am anticipating 2019 to be much better. By that I mean I’m anticipating our cash flow to almost double as a result from just the two transactions. And while most investors don’t look at hourly earnings from rental properties, my W2 background has me thinking that way. If you’re not engaged with our group on Facebook, you’re missing out on conversing with us and 4,500 other W2 real estate investors. Join Us: Real Estate Investing for the W2 Employee

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