Making Multifamily Money - Nov 29th 2023

Real Estate Updates

My real estate portfolio is now stabilized after 2.5 years of renovations, upgrading the renter base, and lots of blood, sweat, and tears.  I owned around 90 units, but sold my 40 lot mobile home park for a loss (check out the case study video down below to learn why!).  I am down to 51 units, but it’s a strong 51 unit portfolio. 

50/51 units are rented out bringing me to around $50,000/month or $600,000/year in GROSS RENTS.  Net cash flow is $10,000/month or $120,000/year tax free.  I just replaced my W-2 pharmacist income and built up a 5 million dollar net worth.  November 2023 was the first month I am “financially free,” but still continue to work full time.

Why do I still work full time? I need to see at least 6 months of consistent $10,000/month before I even consider leaving my W-2.  In addition, I need to build up my cash reserves ( must be 3-6 months of my monthly expenses including my 51 units and personal expenses).  I need to pay off my line of credit used to renovate my 20 unit apartment complex.  I need to save up for a primary residence.  I need to pay off my whole life insurance policies.  All of this will be easier with dual income - W-2 & real estate cash flow.

To note, most of the cash flow comes from my 26 unit apartment complex - $18,000/month gross rents with a $2,000/month mortgage.  My 5 single family homes are actually cash flow negative in CA (-$4,000/month).  Why? Because I pulled out a lot of equity from them to buy my apartment complexes.  My apartments cover the negative cash flow of the single family homes. 

What I Learned

Talked with my uncle recently who owns about 9 single family homes free and clear in CA.  He sold his house in Fremont, CA for around 1.5 million (a very expensive city) then took the money to buy single family homes (~100k-150k) cash in 2010.  He bought bank owned homes and would negotiate down the price since he could close quickly.

He took his “lazy equity” in his Fremont house then transferred that lazy equity into cash flowing homes owned free and clear.  Now he cash flows around $10,000+/month and travels in his 70s.  He made the decision to relocate to a cheaper area in CA then use that excess cash flow to travel.

Weekly Self-Reflections

Most people ruminate and live in the past which isn’t healthy.  High achievers like myself live in the future and ruminate about the endless possibilities - this isn’t healthy either!

Examples of ruminating about the past.  I wish I started investing in real estate sooner.  I wish I went down a better career path.  I wish I had started investing earlier.  I wish I started going to the gym sooner.  This is how the past can hold you back.

Examples of ruminating in the future.  If I buy this apartment complex, I will make $5,000/month in positive cash flow and be financially free. Once I am financially free then I will be happier.  Always planning and strategizing about the next moves based on all possibilities.  This is how the future can prevent you from enjoying the present.

Solution to rumination? Live in the present.  Let go of the past.  Live in the present, but face slightly towards the future.  Once your mind starts to ruminate, be aware of it then end it immediately.  Don’t make huge 5-10 year goals.  Those may change rapidly based on life experience.  Make 6 month goals and pivot as needed.

Video of the Week

Mobile home park case study on how I lost $60,000

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Mentorship Update

I am always improving the mentorship program based on feedback. I added more modules based on my personal mistakes to give you even more value! I want you to learn from my costly mistakes so that you can proactively reduce stress and save money. As a result, prices continue to go up as more and more value is provided. These updates will help you buy your 1st multifamily deal and give you financial freedom to leave your W-2 job.

Since you are all long time supporters, I will honor the original lower price for the first 5 people! If you want the discount code, please email me immediately before they run out

Also, I have been working on something new over the past few months related to student loans.  More details to come next week so stay tuned!

Want to learn how I built a $5,000,000 net worth and make over $10,000/month in positive cash flow while working full time? Check out the mentorship program!