Rich on Money

Financial Freedom in the Military through Real Estate

Month: July 2016

How I Bought a Rental Property With Cash and Without a Clue

After moving back to the USA from Japan in 2012, I started a new job in Alabama.  I met a fellow military member who shared my passion for real estate.  Meeting him had a profound effect on my life financially.

What he did with real estate is exactly what I wanted to do.

And he was wildly successful.

His Background

When I met him, he had been living there for two years.  In that time, he purchased four houses with cash, remodeled them mostly on his own, and rented them out providing substantial cash flow each month (especially without a mortgage!)

He bought in the range of $25-35k, putting a few thousand and sweat equity into them, then renting them out for around $750 a month.  The numbers were REALLY working for him.

If you apply the 1% rule to these properties, a house that totaled $40k in cost to rent out should pull in $40o to be “worth it.”

These were almost double that.

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5 Tips to Land the Perfect Property Manager

I can trace some very fortunate events that have transpired in my life financially back to one chance encounter.

Many important lessons came out of this encounter, but today we’ll focus on the property manager aspect of it.  I will give you 5 tips to find the perfect management company.

Think you can manage it yourself?  What a headache.

Also, these companies can end up being worth far more than their fees just through their contacts and understanding of the rental market.

It’s working for me, and it can work for you.

I own several rental properties debt-free giving me a passive income that I could retire on today.

But I won’t.

I’m gonna keep buying properties and raise our passive income to a very comfortable number that will allow me and the Mrs. to retire-in-style.

I’ve developed a system and built a team of people over the past few years that is really working for me (literally and figuratively).

I’ll share all these with you in the hope you learn from my luck and missteps.

At the beginning of 2014, the only real estate I had was my primary residence in Washington D.C. which was paid off and rented out.

I wasn’t making much money from it.  It was too high-end in too nice of a neighborhood.  High cost/low rent.  It was actually a poor investment as a rental.

So how did I go from one rental with unimpressive returns to several rentals with impressive returns in a short time?

I met the right person (financially), and was prepared for the opportunity.

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