Great episode! Good to see likeminded individuals that saw a way out of a 9-5 and had the faith to keep going after all these years following the same principle from day one. This was a unique story.
One thing I've realized from multiple BRRRS....especially now..banks need the business...therefore they will give you money via inflated appraisals. So it's not what the market says it's worth but the bank if you catch my drift. Make the bank happy.
Everybody around me thinks I'm crazy and that my goal of at least 5 rental properties is too farfetched. Kinda makes you feel defeated sometimes when the people you love suggest the normal 9 to 5 jobs. I was Active-duty army for 4 years and I would much rather be doing that then working a dead-end job. I'm actively going to real estate school to be an agent and I'm slowly realizing that I'd much rather stay stable at my current job with a side Hussle so that I can afford a down payment on my first rental.
@andrewholbert yes!! I think you are spot on. We stayed in our W2's as long as we could so we could keep getting financing. I would highly recommend having a side hustle and maximize the benefits of a W2 for as long as possible. :)
Definitely keep that W2 and at least get a few rentals before quitting. Honestly I would keep it till you can live off of rental income. I am self employed and it makes it so much more difficult
@thrive910 I found a health insurance broker and they hooked us up with Freedom Life. It's about $600/mo for me and my husband and the coverage is comparable to what I was getting at my W2!
so this is what I strugle with all the time how much of your cash money is invested into your rentals ? What if you take that cash and put it in the bank no risk 5%? example is you have $100,000 in each rental = 1.2million at 5% in bank no risk using current rates = $60,000 are you netting more then this from rentals?
my personal thoughts. first, idk what their cashflow is but probably higher than this. On top of the cash flow, they are building equity on each property as they pay off the loan. The more equity means if they were to sell, they will be able to get more cash out of it. second, 5% is historic high, it's like to go down in the future and never reach close to this rate.
Honestly I think we had a more conservative approach! As long as the numbers make sense and you are cash flow positive and have reserves in the bank, you can balance the risk. Worst case scenario, you can always offload properties and sell them! If you run the numbers correctly, the risk should be minimal (but nothing is without risk)!
The debt is good debt if you control the property & it generates revenue.. all business run off debt, what matters most in business is that you generate revenue. If you pour in the capital upfront w/ new appliances, new furnace, A/C, water heaters ect.. then you’re in one of the safest investments possible given you’re properties are not in tornado alley or hurricane harbor. VET your tenants as if they are moving in with you and you’ll be fine. It’s all about screening your tenants, you’re not running a charity, you are running a business
just saying it’s no different then you solely relying on your job to pay ur bills if you lost that job and couldn’t get another you would actually be more fucked then if you couldn’t rent out that house because you could sell it if needed.
@torqueKMA but we're not selling our properties, so even if the market prices tank, it doesn't really matter to us. That's the beauty of buy and hold investments. The ole saying goes "it's not about timing the market, it's about time in the market" 😄
@robertswanepoel8505 if the market drops, housing value goes down. When that happens renters stand a chance at buying again for less than they are currently paying these people to rent. In the end their rents have to come down to compensate, but this is a problem because they are leveraged up to their ears
@@suburbanacquisitions868 Oh, Shelter for property insurance. For health insurance, I use Freedom Life insurance that I got through a broker. It's about $600/mo for me and my husband and it's been pretty good so far!
@evanazeria 😆 yeah, I think the Midwest markets are typically the most affordable. But as long as you buy something with room to build equity, I think it's a solid strategy!
Very good interview, these stories help reinforce that dreams of real estate is possible
Yes! We’re just normal people out here. If we can do it, anyone can! 🙏🏻
Great episode! Good to see likeminded individuals that saw a way out of a 9-5 and had the faith to keep going after all these years following the same principle from day one. This was a unique story.
Thanks!! That means a lot 🥹🙏🏻
One thing I've realized from multiple BRRRS....especially now..banks need the business...therefore they will give you money via inflated appraisals. So it's not what the market says it's worth but the bank if you catch my drift. Make the bank happy.
Thank You Ashley, and Emily for sharing.
Thank you, you guys! I found this one to be very inspiring. It brings me hope, focus and direction.
Definitely can relate. I am now more interested in putting my money in real estate instead of a car and vacations.🤷♀️
That’s awesome! There’s something to be said about delayed gratification 😊
@@mlegrl yes!
Super inspiring podcast!!! Thank you
Just wanted to say thank you for the content guys, I can relate as well - I snowballed with my girlfriend last night.
Everybody around me thinks I'm crazy and that my goal of at least 5 rental properties is too farfetched. Kinda makes you feel defeated sometimes when the people you love suggest the normal 9 to 5 jobs. I was Active-duty army for 4 years and I would much rather be doing that then working a dead-end job. I'm actively going to real estate school to be an agent and I'm slowly realizing that I'd much rather stay stable at my current job with a side Hussle so that I can afford a down payment on my first rental.
@andrewholbert yes!! I think you are spot on. We stayed in our W2's as long as we could so we could keep getting financing. I would highly recommend having a side hustle and maximize the benefits of a W2 for as long as possible. :)
Definitely keep that W2 and at least get a few rentals before quitting. Honestly I would keep it till you can live off of rental income. I am self employed and it makes it so much more difficult
@emily we have a real estate meetup tonight in syracuse!!
Average people try to hold you back in their POV on life
What do you do for health insurance?
@thrive910 I found a health insurance broker and they hooked us up with Freedom Life. It's about $600/mo for me and my husband and the coverage is comparable to what I was getting at my W2!
I’m in the same situation now!
so this is what I strugle with all the time how much of your cash money is invested into your rentals ? What if you take that cash and put it in the bank no risk 5%? example is you have $100,000 in each rental = 1.2million at 5% in bank no risk using current rates = $60,000 are you netting more then this from rentals?
my personal thoughts.
first, idk what their cashflow is but probably higher than this. On top of the cash flow, they are building equity on each property as they pay off the loan. The more equity means if they were to sell, they will be able to get more cash out of it.
second, 5% is historic high, it's like to go down in the future and never reach close to this rate.
I too am a Safety Manager! This video was meant for me. Lol!
How safe is this? I’m not being difficult Im just afraid of all that debt
Honestly I think we had a more conservative approach! As long as the numbers make sense and you are cash flow positive and have reserves in the bank, you can balance the risk. Worst case scenario, you can always offload properties and sell them! If you run the numbers correctly, the risk should be minimal (but nothing is without risk)!
The debt is good debt if you control the property & it generates revenue.. all business run off debt, what matters most in business is that you generate revenue. If you pour in the capital upfront w/ new appliances, new furnace, A/C, water heaters ect.. then you’re in one of the safest investments possible given you’re properties are not in tornado alley or hurricane harbor. VET your tenants as if they are moving in with you and you’ll be fine. It’s all about screening your tenants, you’re not running a charity, you are running a business
just saying it’s no different then you solely relying on your job to pay ur bills if you lost that job and couldn’t get another you would actually be more fucked then if you couldn’t rent out that house because you could sell it if needed.
I’m right across the river in Edwardsville and we’re starting with buying the duplex we are in.
that is awesome!! Edwardsville is a great market :)
At least u r not at the brewery 😂
If the housing market were to drop... these people would find themselves hurting.
@torqueKMA but we're not selling our properties, so even if the market prices tank, it doesn't really matter to us. That's the beauty of buy and hold investments. The ole saying goes "it's not about timing the market, it's about time in the market" 😄
They will still be getting rent
@robertswanepoel8505 if the market drops, housing value goes down. When that happens renters stand a chance at buying again for less than they are currently paying these people to rent. In the end their rents have to come down to compensate, but this is a problem because they are leveraged up to their ears
Funny, I interned with Anhuesier-Bush as an engineer, but this was years ago.
small world!!
Where did she find cash flowing houses like that!
So the million dollar question, what do you do for insurance???
Just buy insurance
We use Shelter Insurance! I always ask my lender if they have any insurance recommendations.
@@mlegrl for house or for yorrself (health)
@@suburbanacquisitions868 Oh, Shelter for property insurance. For health insurance, I use Freedom Life insurance that I got through a broker. It's about $600/mo for me and my husband and it's been pretty good so far!
She lives in my neck of the woods. Tell her to hit me up later and hook a bro up.😂
I’m a real estate investor. I am aim to acquire properties in the future. I’m want my investment to replace my current income.
Yes, do it! It takes time but it’s possible 😊
Do you want to invest in Texas? I'm a listing agent and got a good deal 🎉
so basically live in Missouri if you want to buy a house for 90k
You have to take risks or you won’t get anywhere that’s worth it
@evanazeria 😆 yeah, I think the Midwest markets are typically the most affordable. But as long as you buy something with room to build equity, I think it's a solid strategy!
@mlegrl interested in learning more about the st louis market! Such a great episode!
Thank you!! :) STL is a great market!!
6figure like $100,000? Which is not much money.
They wouldn’t have left if they were making $900,000
No you're right, I would not have left if I was making $900,000 hahaha
What job pays 900k? 😂
@@arielleb.8937 right haha I will be the first to apply 🤣
This show is soooo hard to watch sometimes lol
amazing episode !!
@mlegrl may i know how we can reach out to you ?