Im at 4 SFH rented out. I recently purchased them all in July of 2024. Im cash strapped now putting 20-25% on each property. Is there a way i can still purchase more properties? I would like to quit my job one day.
This was my exact formula. Over the last 20 years I have purchased and paid off 5 rentals. They now generate 80 to 100k annually. These properties will fund a good percentage of my retirement.
I paid my own home and then rent it, used the rent to take a mortgage on another flat to rent. Rent from new one is stashed at 5%savings and used to make extra payment every year. When is payed, iam Buying more. Iam 31y.o. Now. My target ist min. 2000$/month after tax and fund(iam on 900$now). More is better 😂offcourse.
@@Maxrotor1 this in video is pure stupidity. Building almost no equity on lots of houses having few hundreds left. Imagine half goes empty. You are fakked. Also they do mortgages based on income/debt ratio.... I can take a loan for another two units. Right now. But i won't do that for next two years before i pay for my second flat. Then i have enough cashflow to take two loans and pay them even if they are empty for months.
I own 3 properties. I run an adult family home in one, which brings in 40k a month, after bills/caregivers my take home is 29k a month. My second property I run another adult family home in it, bringing in 30k a month, take home about 20k. My 3rd home is the one I live in with my family. My husband owns another property with just long term renters bringing in 300.00 a month. Now we are looking into Clearwater Florida area to start an airbnb venture to continue building our portfolio in real estate
As a professional property manager for a large portfolio, I am building my way to a small portfolio. If freedom of time and money are your thing, you either have to go so big that you can hire everything out or go small enough that its manageable. I want nothing to do with a huge portfolio
I recently purchased 4 SFH in July of 2024. They are rented out. I put 20% on 3 and 25% on 1. I net about $2200 per month. Im cash strapped and wondering how I can scale up. My number is $15K monthly in order to retire. I would love your input.
@@hak2745 I'm not a really big SFH guy. In my opinion you have a rental pool that may or may not be limited due to the cost of renting a single family home. The per door maintenance cost is far higher and if it's vacant its a much bigger hit than if one of your 4 Plex units was vacant. That said, you're headed in a good direction. Either be patient and wait or start bringing in investors to expand. Really start hunting for properties with big value add opportunities. Lean into the money that after repair refi gets you and slowly chunk away at getting more. Each market is very different and without knowing your skillsets, time and proximity to the property, it's hard to give more specific answers.
Carson you are the most legit channel I've found after extensive researching. Pure content. I'll bet it's even easier for you to just talk the talk instead of adding TH-camr glitz that instantly discredits others.
Government policy has thrown the future under the bus for decades. The day of judgment is near. I predict an 80% drop in the stock market. Investors will abandon stocks in favor of real estate. There will be no money in banks... You must devise a strategy for survival.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to over $750k.
We have been in a depression since 2008, the yield curve has already uninverted, global recession indicators are flashing alarm for well over a year, and absolutely nobody could pull us out of the hell coming regardless of party.
I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.!!
*Julianne Iwersen Niemann* a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
_Julianne_ sure knows her onions in this industry, from her intimidating profile which I went through, on her web home page. I started off last year tailoring a colleague's tradin strategies but it didn't pan out well. Hopeful that she will attend to my message.
I’ve seen a lot of people use real estate to build wealth and eventually become financially free. Rentals can provide steady passive income, and if the properties are small and relatively simple to manage, it can definitely be a sustainable way to build cash flow.
I agree with you. I have worked with many real estate Christian organisations. They are doing like that. Unfortunately I am working as a freelancer. That's why it's a small project for bookkeeping. So
I reread John schaub's book at least once a year. So much gold in there. Because of it I have 8 properties and started in 2020. Feel like I don't really need anymore but it's addicting
27 yrs old, just got my 4th rental proeprty last march, totalling 11 units. Im working now towards house flipping for some more active income that I can reinvest.
Hi, I have a question. Exactly what are the strategies for saving enough money to buy a rental once a year? That seems like a very challenging goal. I’d be interested in hearing your thoughts on that.
great question. I'll give you two different answers. 1. There's the boring/not helpful answer of sometimes it's just a grind. It's just about being frugal to save extra money and then working side jobs, side hustles, etc to increase your income. 2. Because it's hard to come up with those cash savings, you have to also be creative early in your journey with how you do deals. I have two TH-cam videos that I made with that idea in mind. Here they are: - How I'd Buy My Next Rental if I Only Had $50,000 - th-cam.com/video/6_0quxsP7Ms/w-d-xo.htmlsi=qWpgMvEnfU_AowJL - 5 Uncommon Tips for Buying a Rental Property with Little Cash - th-cam.com/video/R1hC6EWPYoY/w-d-xo.htmlsi=LN8PYfaabtucJU6j Hope that helps! good luck with your savings for the next deal.
LOVE THIS, Coach Carson! We have 3 rentals currently and once in a while we have to dip into our savings for some repairs. When we are in the middle of it and we wonder why we are doing it to ourselves. Why don’t we sell them and chill? You confirmed what the point of all that is. Thank you! Just have to keep going.
Just found your channel and I truly appreciate it! I got my first property in 2023 and was debating on the approach for my second one. This video gave me some insight
I have five rentals, am now retired and at the phase in life where I want to reduce further my involvement and want to harvest equity. Five mostly paid rentals in 15 years has funded lots traveling and creating a good life.
Great content and thought process. I watch a lot of real estate content and have talked about it online myself and your approach to paying off properties and knowing “your number” is sound advice. I’m at the stage now where I have 49 units, I don’t take cashflow and pay myself. Instead I’ve been using all the cashflow to buy more when something in my buy box is met. The only fully paid off property I have is my primary, but I’m considering stopping buying unless something comes up I can’t say no to and paying down each property using the snowball method. The snowball method works well here in Canada because you need to get a new mortgage every 1-5 years depending on your term as we don’t have 30 year or even 15 year fixed. So up to 6 months before the term is done you can lock in a new rate. Paying down property for a year or 2 even if you don’t fully pay it off and locking in a new rate raises your cashflow a lot assuming the rates don’t sky rocket and it’s safe to say rates have peaked for awhile. Great content coach! One of the realest ones out there not spewing a bunch of BS.
First real estate you tube channel so far is reasonable and speak facts and near reality , good information and confirmed my thought building wealth takes time, 5 years at a minimum.
This is what I have been doing. Sold 2 properties recently and put all the funds into my highest interest loan to reduce the payments. Debt reduction on the loan is equal to the cash flow I had on the other two properties but I'll no longer have those tenants / extra maintenance. Has been working like a charm so far :)
In the early 1990s, when I purchased my first residence in Miami, mortgage rates were commonly in the 8-10% range. Today’s market participants must recognize that the historically low rates of 3% may not return. If sellers are compelled to list their properties, market dynamics will likely drive prices downward, leading to reduced valuations-this is a sentiment that many in the industry share.
The situation is poised to become more challenging. Affordable housing will soon become a misnomer. My advice for anyone considering a move is to act promptly, as current prices may appear as bargains in the near future. Until the Federal Reserve takes more decisive action, inflationary pressures could drive significant market instability. Partial measures won’t suffice to stabilize the situation.
Man I like your no nonsense straight forward approach. Your content is very nice and easy to digest, plus withall of the hype. Thank you for sharing your knowledge.
my goal is to pay off 5-6 rental properties. I have acquired 3 already, and in order to retire I need 5-6 paid off. I choose this because it is the lowest amount of rentals to maintain a retirement income AND not be overburdened with work.
i’d like to know how you dealing with property managing companies they usually take their 10% and not managing the property at all not doing a good job. i had a very bad experience. i had to change three companies and still can’t find a good one to take care of my properties. any ideas suggestions?
Great material. Thank you for sharing, I recently just started investing in rental properties. Looking for my second one soon hope I get to be able to buy many more in the future.
Recently found your channel. These points are spot on for someone that wants to go slow and steady (which I recommend). Too many online people pushing you to grow super fast, have multiple partners, leverage too hard, etc. 15 years goes by incredibly fast! One per year is perfect. Of course, when there is opportunity, buy more. I'm 49 and still growing, but those early purchased properties are ready to be "harvested". Actually, today just started a refi on a property I only have $15k left on the loan. Will use the money to build a 1000sqft ADU in the back yard (Durham, NC). I will have built two ADU's this year with my 19 yo son. More info on Harvesting please!....and congrats on 100k subscribers!!!
yes..more on harvesting equity please. You were spot on with your comment on most real estate educators not focusing on this stage--and strategies to help capital and this form of capital/wealth accumulation--achieve higher capacities of velocity
I'm so glad you spoke about a debt snowball with your properties. Most people I know think they will always have a mortgage payment even on a rental. I will definitely be doing this when I start my portfolio.
@@CoachChadCarson no problem! Thanks for the wealth of knowledge in these videos. I'm still learning the pros and cons to owning and financing rentals. I'd prefer to own all but when You speak on cash flow, I'm having to rethink lol. Just keep teaching us!
I have to be honest. Its first hard to trust anyone after all the information out there, secondly, this has cost me time via failing and wasted time, how do you know or find where to start, trust and begin with little money. -Dr.
Nobody can become financially successful overnight. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals. you have to contend with inflation, recession, decisions from the Feds and all. I was able to increase my portfolio by $289k in months. You have to seek for help in the right places.
I think it's not always about fear, Sometimes realistic factors discourage people from reaching their goals in life. For instance, I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
'Carol Vivian Constable, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Carson, I am part of a group doing a development in rural Utah. Its a growing area and lots of industry coming in. We have 5 homes right now but are carrying loans at 9% on a lot of land that isnt yet producing. We are trying to sell a couple units to build new ones without increasing our debt burden. They are renting for 2,400-2,800/month. Do you have any interest in buying one or two of them? Or partnering on building out some of our undeveloped lots?
I've been watching your videos for a couple years now. Im anout to buy my first rental propertie and I live in the upstate SC and would love to hear more about this area from you.
I just want to get started. I’m just not sure how to take the first initial step. I currently own one house. The house that I live in, which is not paid off.
Here’s a good tip. If you have a 680 credit score (which I’m working towards, as I currently own my second home. ) Depending on your state you can pull what’s called a second mortgage using the equity of your first home. It’ll be a fixed rate loan at 35-40k or possibly more. The more you borrow the higher the payment of course. Use that as a down payment on a second property. Rent it out and basically have someone else paying that home off for you. You charge the first two months rent down (one for security deposit, other for first months rent) and make the due date 3-5 days earlier than the mortgage due date so it’s always on time. After a year or so, refinance, use the money to invest in another.
I have similar goals in mind but my spouse says why pay off the debt when you can invest in another property. I tried to explain the compounding interest payments but she talks about equity in a second property instead. Which is a better long term strategy.
Thanks for suggestion. I'm actually building some new rentals with a builder partner right now. So, I will share more once it's further along. Did you have to drop the rent to get it filled up? With new builds sometimes it's hard to know what the actual rent is for the first time
correct. Had to drop the rent a few times (for both new builds in different cities) and threw in additional incentives like 50% off first month to get a tenant.
Love this video. Clear concise. So hard to refi with the loans a lot of us have. I want to keep my 3%. The over buy is smart. Hard to know if there will be much equity building like we’ve seen the last 3-4 years.
Yeah - I think we have to buy low and do value add deals to force that equity ourselves. But I'm also buying in high demand (i.e. growing population) areas to give myself a tailwind with growing rents and values.
Great content! Thank you for sharing. If I want to take the debt snowball approach to paying down rental properties should I tackle the high interest rate property or the one with the current lowest balance?
Thanks Coach. Great video and I like the equity/net worth viewpoint. I’m planning on using a combination of rentals, real estate syndications and stocks to meet or exceed my goals of financial independence within the next 5 years. Thanks for the inspiration!
Thank you for your valuable video. This method doesn’t work in California, especially in San Diego. Are there any tips that I can put my hand on for a first rental? Thanks in advance!
Great videos as always coach. My wife and I own 4 single family homes, 3 are fully paid and the 4th we owe 66k on it and hoping to pay that off by end of this year. Do you recommend putting the homes in a LLC? Right now they are all under our name
I put my rentals in an LLC or multiple. But some other landlords don't. I actually have an episode coming out in a couple of weeks about this topic. And I did another earlier this year with an attorney who recommends LLCs
Thanks so much for this video! There’s one piece that isn’t making sense for me. Are you saying it’s fine to buy a property with negative cashflow? Or am I missing something? In Florida, with taxes, insurance, mortgage, and all other expenses, a $230k house at $1800/mo rent & a 25% dp puts you $600 in the hole each month. It would take a 40% dp ($93k) to break even every month. Properties at that price point are rare too.
You have to find reasonable tenants if you want to keep your hours down to 1 or 2 per week. On average I'd argue it's more like a half hour per week per tenant. It really depends on property condition and many other variables.
The idea is to get into NEW developments and have professional management. That's what I did. Very small cap entry, 100% financing, built-in equity on a new development. Professional management is included!
True. Agree that it depends. I also have property managers. It wouldn't be 1-2 hours per week with student rentals without my team. But I also self-manage some single family houses with long-term tenants and it's much easier and less time.
Love this! So many people think you need a ton of properties to be "successful". It's just not true. And with smaller number of units, usually means more control over your most valuable asset....time.
Good evening Coach, Just a quick question/ seeking advise, I know much of the content given is transferable to the UK market too, just wanted to ask if you have any recomendations on other content I should look into since there is likely some nuance between the two markets a new first time buy like myself is unaware off. Just trying to avoid any hidden pitfalls before I make the first purchase next year. (Currently with a focus on 3 bedroom/corner plot house to snag a few with a larger then normal garden plot. (land = value is my thinking plus who doesnt want to appreciate a sizable relaxation space..)
I purchased my first rental last year, a 3 flat. Now I have enough money to buy a single family but I’m not sure if I should do that or wait til I have enough for another 3 flat or a duplex. If I wait it would have to be another year for that.
I'd just make sure I got a good deal. If you can buy a single family in good location with good numbers, I'd do it. If not -- be patient and wait for the next deal.
I think the strategy is for people who have patience and are willing to wait until they pay off the properties but if your income isn’t that high, I don’t know, bro
@@Sicwkskxkckckzd you definitely need patience. True. If you don't have high income you can partner with someone who has more cash/income. That's what I did.
I'm using this strategy and I recommend keep buying then pay them off. The tenants pay off the mortgage over time. So it helps to maximize the time by buying them first
At 3:55 when I pay cash for houses I get about 8% and thats actually very consistent because the clean and sober company I rent to will rent from me until I die. So there is not vacancies every 2 to 3 years like normal rental houses. Normal rental houses are sooooo inefficient.
I think he's saying he rents a commercial property to a business and in this case the business is a recovery center. Just my guess though I could be wrong
My mistake was going from a w2 job to self employed. W2 job provided easy ability to get loans. Once I became self-employed I was writing everything off and could no longer get good mortgages without a lot of money down. I made the mistake of getting some adjustable rate mortgages and that came to bite me when we had the big downturn in 2008 in my property value plummeted at the same time my rates adjusted substantially. It's definitely a long game and you have to be committed to sticking with it in overtime you will build wealth.
How can I paid off 5 rental properties in 10 years with a 9-5 job I’m saving to buy properties in public auctions or wholesale that’s better approach to created wealth
I'm just curious. Would it be better to keep some debt in a property and avoid positive cash flow when you have a full time job? So that you won't have to pay taxes on the positive cash flow while building equity in the property?
@@andrewbui2982 hi Andrew - generally yes - keep debt on the property in the growth/building phase. And then when you are ready to take some risk off table, increase cash flow, and simplify- you can start paying off debt.
Hey coach! Starting following you, let’s say I have a free and clear $220k condo generating $1,200 how will you structure a strategy to FIRE living in Miami with $70k annual expenses
The confusing part is your saying you find properties, buy with 20% or less down and do a 15 year mortgage AND you cash flow? That literally seems impossible and over 8 months of looking I can barely break even with a 30 year mortgage. Seems like a 10 year ago strategy because I don't see those properties existing?
@@CoachChadCarson I'm assuming if you have really good deductions with real estate it looks like your not making very much money and the cost of insurance is relatively low.
@@danielnolte3579 That was true for a while. Over time I've grown over the maximum income allowed to still get subsidies. So, we pay 100%. But I still am happy to have something available outside of a traditional job plan, even thought it's like $1,200/mo for a family.
@@CoachChadCarson That's really not bad at $1200 a month. I don't know what type of coverage or deductible you have but I pay $500 a month right now for a family health insurance plan. I currently own 4 properties with 9 units and I am wanting to grow more to eventually sell off properties in the future to pay off other properties like you always talk about.
This is very hard here in Los Angeles. The average price is $850k and the mortgages are over $5k / month. I have more than enough for down payment but can’t afford the monthly mortage.
Have you considered investing out of state? We even have a couple properties in international markets, requires setting up good systems and teams but it's feasible. Good luck
@@reinam3848 I have but I don’t know anyone out of state. I guess maybe that’s why I haven’t fully committed in doing of state deals. Might have to start doing more research tbh
@@CoachChadCarson this is my plan what would you change sir??? This is my thoughts on real estate two scenarios buy box meaning when we will buy the property We want the property to be under valued by about 25% We will put 25% down to get out of pmi of 1.5 It will have 3 bedroom It will not have any foundation problem It will have central heat and air It be at least 3 bedroom No roof problems Newer than 1955 Cash flow at least 500 and the more the better Rent at least 1k Example of what I would like to do House 1 Buy a house say at 100k and 15k repairs So 25k down 75k loan at 8% 551 house payment 200 for property tax and insurance 751 a month Rents at least a 1000 this one is 1252 that’s about the median for this size house Cash flow of 500 dollars Investor 1 2k Investor 2 2 k Payment is 5252 This leaves no gap for maintenance or taxes or insurance when they come up we would pay them out of the over payment so an extra 4500 a month will cover most things like almost everything in these houses at this price range if that makes sense so cc the pay it off next rent due date simple stuff and pick back up where we left off next month with the pay down So 5252 payments on this example will pay it down in 1 year 2 months House 2 The same but we add the payment from house to this house because we no longer have that payment 1 house rental income 1251+investor money 4k plus rent on the 2 home 1251=6503 1 year payoff Total time 2 years 2 months House 3 1251x3 rent homes +4k investment 7754 10 month Total time 3 years House 4 1251x4 +4k investment 9005 9 months Total time 3 years 9 months House 5 10256 8 months 4 year 4 month House 6 11507 7 months Total 4 years 11 months House 7 12758 6months 5 years 5months House 8 14009 6 months 5 years 11 months House 9 15260 5 month Total 6 years 4 months House 10 16511 5 months 6 years 10 months House 11 17761 5months 7 years 3 months House 12 19013 4month 7 years 7 months Here is a special time at that 7-8 year mark the house has about doubled in price Their is a few different things that are going on here also rent is getting higher almost every year and the values are going up and if we have a problem house better to just sell it and put it into anther property make it a flip and move on I think that flipping house might be a good strategy to Accelerate these pay downs 25k+ plus profit on those with a gap just to cya of about 45k would kinda of be ideal 1 or 2 of these a year would be very helpful to the pay down. So in this plan it is a one way money flowing machine that just eats money for about 5 years and then it is scalable but the tax benefits are awesome also but the tax benefits are the only thing we would get that would be tangible for the first 5 years
Do more on paydown mortgage and how you can front pay your interest down as you snowball into the loan. Can you also split pay your morgage and paydown faster?
I have a lot more than 8 rentals and I spend 2 hours per week and have lived in other countries for over a year. A mature rental portfolio is a very part time job. It's passive enough to do whatever you want.
@@CoachChadCarson If I had 8+ rentals I'm sure I'd be spending more than 2 hrs/week. 3 dental offices and 1 rental is enough for me. BTW I enjoyed your video with Rob Abasolo. Cheers from WA
![BOWKYLION - วิงวอน (ex-change) [Official MV]](http://i.ytimg.com/vi/cLdnZWDaO-w/mqdefault.jpg)
Here's my ▶ Next Suggested Video: How to Analyze a Rental Property (No Calculators or Spreadsheets Needed!): th-cam.com/video/ExFWAYXr11s/w-d-xo.html
Im at 4 SFH rented out. I recently purchased them all in July of 2024. Im cash strapped now putting 20-25% on each property. Is there a way i can still purchase more properties? I would like to quit my job one day.
This was my exact formula. Over the last 20 years I have purchased and paid off 5 rentals. They now generate 80 to 100k annually. These properties will fund a good percentage of my retirement.
That's amazing! 🎉 thanks for sharing and congrats on your success.
I paid my own home and then rent it, used the rent to take a mortgage on another flat to rent. Rent from new one is stashed at 5%savings and used to make extra payment every year. When is payed, iam Buying more. Iam 31y.o. Now. My target ist min. 2000$/month after tax and fund(iam on 900$now). More is better 😂offcourse.
@@MAATESSSX This is what I am recommending to my kids.
@@Maxrotor1 this in video is pure stupidity. Building almost no equity on lots of houses having few hundreds left. Imagine half goes empty. You are fakked. Also they do mortgages based on income/debt ratio.... I can take a loan for another two units. Right now. But i won't do that for next two years before i pay for my second flat. Then i have enough cashflow to take two loans and pay them even if they are empty for months.
I own 3 properties. I run an adult family home in one, which brings in 40k a month, after bills/caregivers my take home is 29k a month. My second property I run another adult family home in it, bringing in 30k a month, take home about 20k. My 3rd home is the one I live in with my family. My husband owns another property with just long term renters bringing in 300.00 a month. Now we are looking into Clearwater Florida area to start an airbnb venture to continue building our portfolio in real estate
As a professional property manager for a large portfolio, I am building my way to a small portfolio. If freedom of time and money are your thing, you either have to go so big that you can hire everything out or go small enough that its manageable. I want nothing to do with a huge portfolio
good point. It's either REALLY big or small and mighty. I don't want the really big either! Thanks for the comment.
From property manager to property manager, wish u much success
I recently purchased 4 SFH in July of 2024. They are rented out. I put 20% on 3 and 25% on 1. I net about $2200 per month. Im cash strapped and wondering how I can scale up. My number is $15K monthly in order to retire. I would love your input.
@@hak2745 I'm not a really big SFH guy. In my opinion you have a rental pool that may or may not be limited due to the cost of renting a single family home. The per door maintenance cost is far higher and if it's vacant its a much bigger hit than if one of your 4 Plex units was vacant. That said, you're headed in a good direction. Either be patient and wait or start bringing in investors to expand. Really start hunting for properties with big value add opportunities. Lean into the money that after repair refi gets you and slowly chunk away at getting more. Each market is very different and without knowing your skillsets, time and proximity to the property, it's hard to give more specific answers.
@@hak2745 Purchase MF owner-financed or use the SCDC method of ownership!
Carson you are the most legit channel I've found after extensive researching. Pure content. I'll bet it's even easier for you to just talk the talk instead of adding TH-camr glitz that instantly discredits others.
thank you Todd! Means a lot.
I don't have any glitz anyway, so that makes it easier! 😆
Government policy has thrown the future under the bus for decades. The day of judgment is near. I predict an 80% drop in the stock market. Investors will abandon stocks in favor of real estate. There will be no money in banks... You must devise a strategy for survival.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to over $750k.
We have been in a depression since 2008, the yield curve has already uninverted, global recession indicators are flashing alarm for well over a year, and absolutely nobody could pull us out of the hell coming regardless of party.
I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.!!
*Julianne Iwersen Niemann* a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
_Julianne_ sure knows her onions in this industry, from her intimidating profile which I went through, on her web home page. I started off last year tailoring a colleague's tradin strategies but it didn't pan out well. Hopeful that she will attend to my message.
You just told my life story (better than me). 5 properties, currently 45 years old, retired in Feb 2022. Thanks for the content.
amazing! Congrats to you for accomplishing that. What's next for you?
@@CoachChadCarson Thank you! Teach my sons how to manage the properties, so I can continue to travel.
@@300rentals6 You mean teaching them how to take advantage of the less fortunate?!!!
@300rentals6 do you have any course to how manage properties?
I’ve seen a lot of people use real estate to build wealth and eventually become financially free. Rentals can provide steady passive income, and if the properties are small and relatively simple to manage, it can definitely be a sustainable way to build cash flow.
I agree with you. I have worked with many real estate Christian organisations. They are doing like that. Unfortunately I am working as a freelancer. That's why it's a small project for bookkeeping. So
This is truly one of the best ways to become financially free!
Definitely make another video about strategies on harvesting your wealth!
noted! thank you Hank.
I reread John schaub's book at least once a year. So much gold in there. Because of it I have 8 properties and started in 2020. Feel like I don't really need anymore but it's addicting
Thanks for sharing! Congrats! And I agree on John's book. I have reread it regularly as well.
Do you mind me asking the name of the book? I’m just getting started. Have 1 but would love to have 4-5
@@troyboulware3518 Building Wealth One House at a Time
27 yrs old, just got my 4th rental proeprty last march, totalling 11 units. Im working now towards house flipping for some more active income that I can reinvest.
Congrats! That's awesome.
Very impressive!
Hi, I have a question. Exactly what are the strategies for saving enough money to buy a rental once a year? That seems like a very challenging goal. I’d be interested in hearing your thoughts on that.
great question. I'll give you two different answers.
1. There's the boring/not helpful answer of sometimes it's just a grind. It's just about being frugal to save extra money and then working side jobs, side hustles, etc to increase your income.
2. Because it's hard to come up with those cash savings, you have to also be creative early in your journey with how you do deals. I have two TH-cam videos that I made with that idea in mind. Here they are:
- How I'd Buy My Next Rental if I Only Had $50,000 - th-cam.com/video/6_0quxsP7Ms/w-d-xo.htmlsi=qWpgMvEnfU_AowJL
- 5 Uncommon Tips for Buying a Rental Property with Little Cash - th-cam.com/video/R1hC6EWPYoY/w-d-xo.htmlsi=LN8PYfaabtucJU6j
Hope that helps! good luck with your savings for the next deal.
LOVE THIS, Coach Carson! We have 3 rentals currently and once in a while we have to dip into our savings for some repairs. When we are in the middle of it and we wonder why we are doing it to ourselves. Why don’t we sell them and chill? You confirmed what the point of all that is. Thank you! Just have to keep going.
@@samuellam5614 thanks for the feedback. It's definitely a grind sometimes. With the right properties, it gets much better with time.
Things that are worthwhile are rarely easy. Only you can decide if you think it'll be worth it in the end. I'm glad I stayed with it.
Just found your channel and I truly appreciate it! I got my first property in 2023 and was debating on the approach for my second one. This video gave me some insight
I have five rentals, am now retired and at the phase in life where I want to reduce further my involvement and want to harvest equity.
Five mostly paid rentals in 15 years has funded lots traveling and creating a good life.
How much money would you need to start?
How much money did you have to put for down-payment on house what is total price of house and what state u in
Coach, I like the simple steps you have presented.
I would appreciate you doing more videos on harvesting equity.
Will do! Thanks for the feedback
Great content and thought process. I watch a lot of real estate content and have talked about it online myself and your approach to paying off properties and knowing “your number” is sound advice.
I’m at the stage now where I have 49 units, I don’t take cashflow and pay myself. Instead I’ve been using all the cashflow to buy more when something in my buy box is met.
The only fully paid off property I have is my primary, but I’m considering stopping buying unless something comes up I can’t say no to and paying down each property using the snowball method.
The snowball method works well here in Canada because you need to get a new mortgage every 1-5 years depending on your term as we don’t have 30 year or even 15 year fixed. So up to 6 months before the term is done you can lock in a new rate. Paying down property for a year or 2 even if you don’t fully pay it off and locking in a new rate raises your cashflow a lot assuming the rates don’t sky rocket and it’s safe to say rates have peaked for awhile.
Great content coach! One of the realest ones out there not spewing a bunch of BS.
First real estate you tube channel so far is reasonable and speak facts and near reality , good information and confirmed my thought building wealth takes time, 5 years at a minimum.
@@AC11-11 thank you for the kind feedback and for watching. Welcome to the Team!
16:27
You could also recast the loan along the way until it is paid off or the monthly payment gets to a point that you are comfortable with.
Good point. That probably needs to be added to the equity harvesting toolbox. Thanks!
This is what I have been doing. Sold 2 properties recently and put all the funds into my highest interest loan to reduce the payments. Debt reduction on the loan is equal to the cash flow I had on the other two properties but I'll no longer have those tenants / extra maintenance. Has been working like a charm so far :)
@@emily.in.realestate you are exactly who I was thinking about with this strategy!
In the early 1990s, when I purchased my first residence in Miami, mortgage rates were commonly in the 8-10% range. Today’s market participants must recognize that the historically low rates of 3% may not return. If sellers are compelled to list their properties, market dynamics will likely drive prices downward, leading to reduced valuations-this is a sentiment that many in the industry share.
The situation is poised to become more challenging. Affordable housing will soon become a misnomer. My advice for anyone considering a move is to act promptly, as current prices may appear as bargains in the near future. Until the Federal Reserve takes more decisive action, inflationary pressures could drive significant market instability. Partial measures won’t suffice to stabilize the situation.
Yes, please cover more on harvesting equity!
thank you for the feedback! Will do more videos on harvesting.
Man I like your no nonsense straight forward approach. Your content is very nice and easy to digest, plus withall of the hype. Thank you for sharing your knowledge.
my goal is to pay off 5-6 rental properties. I have acquired 3 already, and in order to retire I need 5-6 paid off. I choose this because it is the lowest amount of rentals to maintain a retirement income AND not be overburdened with work.
i’d like to know how you dealing with property managing companies they usually take their 10% and not managing the property at all not doing a good job. i had a very bad experience. i had to change three companies and still can’t find a good one to take care of my properties. any ideas suggestions?
Great material. Thank you for sharing, I recently just started investing in rental properties. Looking for my second one soon hope I get to be able to buy many more in the future.
Recently found your channel. These points are spot on for someone that wants to go slow and steady (which I recommend). Too many online people pushing you to grow super fast, have multiple partners, leverage too hard, etc. 15 years goes by incredibly fast! One per year is perfect. Of course, when there is opportunity, buy more. I'm 49 and still growing, but those early purchased properties are ready to be "harvested". Actually, today just started a refi on a property I only have $15k left on the loan. Will use the money to build a 1000sqft ADU in the back yard (Durham, NC). I will have built two ADU's this year with my 19 yo son. More info on Harvesting please!....and congrats on 100k subscribers!!!
Thanks for sharing the details of your journey. That's cool to hear how your portfolio has evolved and grown. Best of luck!
yes..more on harvesting equity please. You were spot on with your comment on most real estate educators not focusing on this stage--and strategies to help capital and this form of capital/wealth accumulation--achieve higher capacities of velocity
What about considering alternative investment strategies, like Airbnb or short-term rentals?
This was really useful. Thanks Coach!
Awesome video! Yes, please do a video on harvesting equity.
I'll be doing more, but here's one about the subject: th-cam.com/video/C5Qj6LKHdpA/w-d-xo.html
Yes…more on harvesting equity!
Yes - more on Harvesting. Thank you!!
Great video. THANK YOU!!!
I'm so glad you spoke about a debt snowball with your properties. Most people I know think they will always have a mortgage payment even on a rental. I will definitely be doing this when I start my portfolio.
Thanks for the comment, Nicole! I'm glad you resonate with the debt paydown idea, too.
@@CoachChadCarson no problem! Thanks for the wealth of knowledge in these videos. I'm still learning the pros and cons to owning and financing rentals. I'd prefer to own all but when You speak on cash flow, I'm having to rethink lol. Just keep teaching us!
Great job on this episode, Coach. This is pretty much what I am doing. Keep up the good work!
Awesome content Chad, looking forward to the "back of the envelop" formula. Thanks
Carl, Great video! Love the slow and steady strategy. Very well explained. Thanks so much for sharing.
I have to be honest. Its first hard to trust anyone after all the information out there, secondly, this has cost me time via failing and wasted time, how do you know or find where to start, trust and begin with little money. -Dr.
You fart loudly
Pick up a book my friend. He just referenced one of the best books out there
Nobody can become financially successful overnight. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals. you have to contend with inflation, recession, decisions from the Feds and all. I was able to increase my portfolio by $289k in months. You have to seek for help in the right places.
I think it's not always about fear, Sometimes realistic factors discourage people from reaching their goals in life. For instance, I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with them?
'Carol Vivian Constable, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
Great video!
I’m trying it this way.
Can you please go more in
Depth on how to build a
Management team investing
Virtually. Thank you
Great tips! Thank you for explaining them so clearly. I also noticed the Camino arrow on the background! Such a life changing experience.
Carson, I am part of a group doing a development in rural Utah. Its a growing area and lots of industry coming in. We have 5 homes right now but are carrying loans at 9% on a lot of land that isnt yet producing. We are trying to sell a couple units to build new ones without increasing our debt burden. They are renting for 2,400-2,800/month. Do you have any interest in buying one or two of them? Or partnering on building out some of our undeveloped lots?
I really like your small mighty investor idea. Sometimes that "I own 50 units" approach is daunting.
You're right - going big can be daunting. Keep it small, keep it all!
I've been watching your videos for a couple years now. Im anout to buy my first rental propertie and I live in the upstate SC and would love to hear more about this area from you.
Great video coach! I love the small and mighty philosophy. Yes, please do more on the harvesting phase
Will do! thanks for watching and for the feedback, Doug.
I just want to get started. I’m just not sure how to take the first initial step. I currently own one house. The house that I live in, which is not paid off.
Here’s a good tip.
If you have a 680 credit score (which I’m working towards, as I currently own my second home. )
Depending on your state you can pull what’s called a second mortgage using the equity of your first home. It’ll be a fixed rate loan at 35-40k or possibly more. The more you borrow the higher the payment of course.
Use that as a down payment on a second property. Rent it out and basically have someone else paying that home off for you. You charge the first two months rent down (one for security deposit, other for first months rent) and make the due date 3-5 days earlier than the mortgage due date so it’s always on time. After a year or so, refinance, use the money to invest in another.
I have similar goals in mind but my spouse says why pay off the debt when you can invest in another property. I tried to explain the compounding interest payments but she talks about equity in a second property instead. Which is a better long term strategy.
Can you do a video on what to avoid for new builds? Recently I bought a property that took 3+ months to rent..
Thanks for suggestion. I'm actually building some new rentals with a builder partner right now. So, I will share more once it's further along.
Did you have to drop the rent to get it filled up? With new builds sometimes it's hard to know what the actual rent is for the first time
correct. Had to drop the rent a few times (for both new builds in different cities) and threw in additional incentives like 50% off first month to get a tenant.
This was one of the most helpful videos I’ve watched! Ty!
@@ncmay1112 happy to hear that! Thanks for watching!
Thank you coach! Great value!
So well made! And congrats on 100K Chad!
Thank you, Tae! That means a lot coming from you. You have an excellent channel.
Love this video. Clear concise. So hard to refi with the loans a lot of us have. I want to keep my 3%. The over buy is smart. Hard to know if there will be much equity building like we’ve seen the last 3-4 years.
Yeah - I think we have to buy low and do value add deals to force that equity ourselves. But I'm also buying in high demand (i.e. growing population) areas to give myself a tailwind with growing rents and values.
Great content! Thank you for sharing. If I want to take the debt snowball approach to paying down rental properties should I tackle the high interest rate property or the one with the current lowest balance?
I would pay down the most valuable property and the one that has the highest rent.
Yep, this is how you do it.
This was a good video. Thank you
Thank you Coach!
Just subbed with notifications on! SO HELPFUL! Thank you!
🙏Awesome! Welcome to the Team!
This is by far one of the best real estate videos I have ever watched. Very detailed.
Hey coach,
Great video, would love more in depth details on how you go about buying a house a year on an average income. Thanks
thank you for this suggested video. Great topic that I'd like to cover.
More Harvest your Equity please
More harvesting videos please😊
Thanks Coach. Great video and I like the equity/net worth viewpoint. I’m planning on using a combination of rentals, real estate syndications and stocks to meet or exceed my goals of financial independence within the next 5 years. Thanks for the inspiration!
multipronged approach makes sense! thanks for watching and for commenting. Good luck with the next steps!
Thank you for your valuable video. This method doesn’t work in California, especially in San Diego. Are there any tips that I can put my hand on for a first rental? Thanks in advance!
Very helpful Thank you for sharing this
Excellent plan. Thank you.
Glad it was helpful!
Great strategy!!
Great videos as always coach. My wife and I own 4 single family homes, 3 are fully paid and the 4th we owe 66k on it and hoping to pay that off by end of this year. Do you recommend putting the homes in a LLC? Right now they are all under our name
I put my rentals in an LLC or multiple. But some other landlords don't. I actually have an episode coming out in a couple of weeks about this topic. And I did another earlier this year with an attorney who recommends LLCs
@@CoachChadCarson I will look for that video and will be waiting on the upcoming one. I will also get with an attorney to look into the llc. Thank you
Thanks so much for this video! There’s one piece that isn’t making sense for me. Are you saying it’s fine to buy a property with negative cashflow? Or am I missing something? In Florida, with taxes, insurance, mortgage, and all other expenses, a $230k house at $1800/mo rent & a 25% dp puts you $600 in the hole each month. It would take a 40% dp ($93k) to break even every month. Properties at that price point are rare too.
Great info
I don’t know coach if I shoot for wealth instead of cash flow aren’t I inviting litigation and taxation?
What advice would you give someone currently renting their 1st property and looking to purchase more? What's the best way to go about this?
You have to find reasonable tenants if you want to keep your hours down to 1 or 2 per week. On average I'd argue it's more like a half hour per week per tenant. It really depends on property condition and many other variables.
The idea is to get into NEW developments and have professional management. That's what I did. Very small cap entry, 100% financing, built-in equity on a new development. Professional management is included!
True. Agree that it depends. I also have property managers. It wouldn't be 1-2 hours per week with student rentals without my team.
But I also self-manage some single family houses with long-term tenants and it's much easier and less time.
@@CoachChadCarson Again some of us don't like the idea of taking advantage of folks..... Remember housing is a basic need......
@@donaldlyons17 how are rental owners taking advantage of folks? Don't we provide that basic need of housing to people who want to rent?
Good content. What recording platform are you using. Thanks
@@MichaelSmittySmithScottsdaleAz tella in this case. OBS most of the time.
More information on Equity harvesting please
will do!
Love this! So many people think you need a ton of properties to be "successful". It's just not true. And with smaller number of units, usually means more control over your most valuable asset....time.
Well said! I want to be a time billionaire and have enough money!
How do you look at the tax advantages of writing off interest vs paying off all debt?
I actually made a video about that! th-cam.com/video/7d1iZq0cI9Q/w-d-xo.html
@@CoachChadCarson great video! Thank you!!
Good evening Coach,
Just a quick question/ seeking advise, I know much of the content given is transferable to the UK market too, just wanted to ask if you have any recomendations on other content I should look into since there is likely some nuance between the two markets a new first time buy like myself is unaware off.
Just trying to avoid any hidden pitfalls before I make the first purchase next year. (Currently with a focus on 3 bedroom/corner plot house to snag a few with a larger then normal garden plot. (land = value is my thinking plus who doesnt want to appreciate a sizable relaxation space..)
I purchased my first rental last year, a 3 flat. Now I have enough money to buy a single family but I’m not sure if I should do that or wait til I have enough for another 3 flat or a duplex. If I wait it would have to be another year for that.
I'd just make sure I got a good deal. If you can buy a single family in good location with good numbers, I'd do it. If not -- be patient and wait for the next deal.
I think the strategy is for people who have patience and are willing to wait until they pay off the properties but if your income isn’t that high, I don’t know, bro
@@Sicwkskxkckckzd you definitely need patience. True. If you don't have high income you can partner with someone who has more cash/income. That's what I did.
thanks coach!
thanks for watching!
You brought it up, but you say buy 1 house a year, would you suggest paying off 1 rental before buying or buy then pay off
I'm using this strategy and I recommend keep buying then pay them off. The tenants pay off the mortgage over time. So it helps to maximize the time by buying them first
@@ericfrasier4045 awesome thanks for the reply, will definitely listen to the advice I think!
Thank you
What are your thoughts on building to rent?
If I have 1.5M in investments, and a house with $300k equity, how many rental properties would you recommend purchasing if my goal is $120k/year?
At 3:55 when I pay cash for houses I get about 8% and thats actually very consistent because the clean and sober company I rent to will rent from me until I die. So there is not vacancies every 2 to 3 years like normal rental houses. Normal rental houses are sooooo inefficient.
Hi curious clean and sober? I’m interested thanks!
I think he's saying he rents a commercial property to a business and in this case the business is a recovery center. Just my guess though I could be wrong
My mistake was going from a w2 job to self employed. W2 job provided easy ability to get loans. Once I became self-employed I was writing everything off and could no longer get good mortgages without a lot of money down. I made the mistake of getting some adjustable rate mortgages and that came to bite me when we had the big downturn in 2008 in my property value plummeted at the same time my rates adjusted substantially. It's definitely a long game and you have to be committed to sticking with it in overtime you will build wealth.
Don't understand why anyone would want an adjustable rate mortgage but....
How can I paid off 5 rental properties in 10 years with a 9-5 job I’m saving to buy properties in public auctions or wholesale that’s better approach to created wealth
I'm just curious. Would it be better to keep some debt in a property and avoid positive cash flow when you have a full time job? So that you won't have to pay taxes on the positive cash flow while building equity in the property?
Btw, thank you so much for sharing the information. I've learned so much from your videos. ❤️
@@andrewbui2982 hi Andrew - generally yes - keep debt on the property in the growth/building phase. And then when you are ready to take some risk off table, increase cash flow, and simplify- you can start paying off debt.
Hey coach! Starting following you, let’s say I have a free and clear $220k condo generating $1,200 how will you structure a strategy to FIRE living in Miami with $70k annual expenses
The confusing part is your saying you find properties, buy with 20% or less down and do a 15 year mortgage AND you cash flow? That literally seems impossible and over 8 months of looking I can barely break even with a 30 year mortgage. Seems like a 10 year ago strategy because I don't see those properties existing?
@@bluecollar7060 I don't recommend using 15 year mortgages. 30 year always if possible.
What do you do for health insurance when you are living off cashflow?
Healthcare exchange (Obamacare)
@@CoachChadCarson I'm assuming if you have really good deductions with real estate it looks like your not making very much money and the cost of insurance is relatively low.
@@danielnolte3579 That was true for a while. Over time I've grown over the maximum income allowed to still get subsidies. So, we pay 100%. But I still am happy to have something available outside of a traditional job plan, even thought it's like $1,200/mo for a family.
@@CoachChadCarson That's really not bad at $1200 a month. I don't know what type of coverage or deductible you have but I pay $500 a month right now for a family health insurance plan. I currently own 4 properties with 9 units and I am wanting to grow more to eventually sell off properties in the future to pay off other properties like you always talk about.
Conventional wisdom has changed from four to five rentals, adjusted for inflation 😅.
Lol. A little more cushion!
This is very hard here in Los Angeles. The average price is $850k and the mortgages are over $5k / month. I have more than enough for down payment but can’t afford the monthly mortage.
Have you considered investing out of state? We even have a couple properties in international markets, requires setting up good systems and teams but it's feasible. Good luck
@@reinam3848 I have but I don’t know anyone out of state. I guess maybe that’s why I haven’t fully committed in doing of state deals. Might have to start doing more research tbh
We have a 5 year plan that’s it
love it! Seems like a good enough timeframe to me.
@@CoachChadCarson this is my plan what would you change sir???
This is my thoughts on real estate two scenarios
buy box meaning when we will buy the property
We want the property to be under valued by about 25%
We will put 25% down to get out of pmi of 1.5
It will have 3 bedroom
It will not have any foundation problem
It will have central heat and air
It be at least 3 bedroom
No roof problems
Newer than 1955
Cash flow at least 500 and the more the better
Rent at least 1k
Example of what I would like to do
House 1
Buy a house say at 100k and 15k repairs
So 25k down
75k loan at 8%
551 house payment
200 for property tax and insurance 751 a month
Rents at least a 1000 this one is 1252 that’s about the median for this size house
Cash flow of 500 dollars
Investor 1 2k
Investor 2 2 k
Payment is 5252
This leaves no gap for maintenance or taxes or insurance when they come up we would pay them out of the over payment so an extra 4500 a month will cover most things like almost everything in these houses at this price range if that makes sense so cc the pay it off next rent due date simple stuff and pick back up where we left off next month with the pay down
So 5252 payments on this example will pay it down in 1 year 2 months
House 2
The same but we add the payment from house to this house because we no longer have that payment
1 house rental income 1251+investor money 4k plus rent on the 2 home 1251=6503
1 year payoff
Total time 2 years 2 months
House 3
1251x3 rent homes +4k investment 7754
10 month
Total time 3 years
House 4
1251x4 +4k investment 9005
9 months
Total time 3 years 9 months
House 5
10256
8 months
4 year 4 month
House 6
11507
7 months
Total 4 years 11 months
House 7
12758
6months
5 years 5months
House 8
14009
6 months
5 years 11 months
House 9
15260
5 month
Total 6 years 4 months
House 10
16511
5 months
6 years 10 months
House 11
17761
5months
7 years 3 months
House 12
19013
4month
7 years 7 months
Here is a special time at that 7-8 year mark the house has about doubled in price
Their is a few different things that are going on here also rent is getting higher almost every year and the values are going up and if we have a problem house better to just sell it and put it into anther property make it a flip and move on
I think that flipping house might be a good strategy to Accelerate these pay downs 25k+ plus profit on those with a gap just to cya of about 45k would kinda of be ideal 1 or 2 of these a year would be very helpful to the pay down.
So in this plan it is a one way money flowing machine that just eats money for about 5 years and then it is scalable but the tax benefits are awesome also but the tax benefits are the only thing we would get that would be tangible for the first 5 years
Do more on paydown mortgage and how you can front pay your interest down as you snowball into the loan.
Can you also split pay your morgage and paydown faster?
Paying extra principal payments eats up your cash flow, but increases your equity. Depends on your goal.
Followed you bc I love the videos! But can’t help to say it Go Gamecocks! I see those Clemson helmets back there 😂 🤙🤙🤙🐓🐓🐓
Gamecock and Clemson Tigers fans welcome here 😂 Thanks for watching!
Gawd this is a slow strategy
Bro you just showed 5 PAID OFF rentals! That’s not helpful math to beginners
What math would be helpful as a beginner? I've got other videos and happy to point you in a different direction.
I'm working as a freelancer. I'm providing High quality virtual assistant service
lol 8 rentals is just a different job.
I have a lot more than 8 rentals and I spend 2 hours per week and have lived in other countries for over a year. A mature rental portfolio is a very part time job. It's passive enough to do whatever you want.
@ well look at you
@@haythoven1 hey, you made the comment 😉
@@CoachChadCarson If I had 8+ rentals I'm sure I'd be spending more than 2 hrs/week. 3 dental offices and 1 rental is enough for me. BTW I enjoyed your video with Rob Abasolo. Cheers from WA