It’s all about the cashflow

Depending upon your strategy you may choose to invest for cash flow or appreciation. While we wrapped 2016 with 4 single family rentals, we actually did not purchase an investment property in 2016.  However, we had the good fortune of finding two viable properties in 2015.  In order to do so, we modified our criteria once again.  Home values were continuing to increase. When we began this journey, our goal was to purchase properties that would cash flow with a 15 year mortgage.  We wanted to retire before turning 60 with a number of the mortgages paid off.

With that in mind, we could no longer purchase a cash flowing investment property in our preferred area.  As a result, we needed a new realtor and a new property manager.  Sharing our goals with others continued to open doors for us.  We were introduced to a realtor who also serves his clients as a property manager.  Our search took us further away from our primary residence.  We purchased one home that was a bit smaller and another that was a bit older than we would have liked.  As a real estate investor, your criteria can be modified as long as the purchase aligns with your larger goals.  We were not purchasing for appreciation. We were purchasing for cash flow. 

By 2017, single family homes that met our criteria were hard to come in our desired areas. Not wanting to skip a year, we invested in a multifamily property via syndication. How did this come about you might ask?  Talking about real estate to anyone who would listen, I mean anyone! A colleague gave me the name of a local investor who brings people together to crowd source the purchase of large multifamily properties. After a few conversations, the introduction led to our 2017 real estate investment.  You might ask, why did we invest in a syndication rather than purchase our own multifamily?  It’s a fare question. We were not yet familiar with multifamily investing and thought this would be a good way to learn.  

Making five real estate investments in 5 years did not make us experts by any means.  We continued to listen to audiobooks and podcasts.  Without knowing it, Brandon Turner of Bigger Pockets and Paula Pant of Afford Anything had become our de facto mentors! Both are young, financially independent entrepreneurs and real estate investors who offer different perspectives on the business.  Their podcasts and blogs offer an incredible amount of information absolutely free of charge!  Before the age of 30, both Brandon and Paula decided that a traditional 9-5 was not a fit for either of them!  WOW!!!  Yep, they are Millennials and we are impressed! Actually, I believe this is true of Winne and Jeremy of Go Curry Cracker as well.  

As we continued to learn the question became, how much do we need to retire and how soon can we make it happen?  This feels like a good place to wrap. Keep reading to find the answer. 🙂   

 

Take Away – If you are not listening to podcasts you are missing out! 

Don’t be afraid to share your goals with others. You never know where an introduction might come from. 

Ask yourself, “Is it a lack of knowledge, a lack of courage or a lack of drive keeping me from making a change?” 

 

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