BiggerPockets Money7 Jul 2023

427: Finance Friday: Building a $200K/Year Portfolio on an “Average” Income

A rental property portfolio can replace your job, give you ultimate financial freedom, and allow you to do what you want when you want. But building this massive passive income stream takes time, and if you stick with it, you’ll be rewarded plentifully like today’s guests, Jennifer and John. After starting with an “average” income, this couple was able to consistently buy cash-flowing rentals with the leftovers from their salaries. They compounded their cash flow to buy even more properties and now sit on around $8,000,000 in real estate.

With so much wealth, you’d expect Jennifer and John to be the jet-skiing, vacation-home-buying, luxury car-racing types; but they’re FAR from it. John is still working at his W2 job as Jennifer continues to run her business. They both keep their spending low and live a moderate lifestyle. But, the lack of time freedom and heavy hours of a full-time job is eating away at John. This couple needs to know how they can use their real estate portfolio to retire early.

To go through all the rates, rentals, construction costs, and cash-flow-number-crunching is investing expert James Dainard, who joins Scott on a resourceful episode for any real estate investor. James and Scott will review Jennifer and John’s entire portfolio, giving them suggestions on what to sell, keep, and buy instead. By the end of this episode, John and Jennifer have multiple options that could make them MILLIONS in just a few years’ time!

In This Episode We Cover

The “rate trap” that stops so many rental property investors from upgrading their portfolios

Investing in real estate on an “average” income and why it’s possible for everyone

Tapping into equity and the one metric that’ll tell you whether you should keep or sell your property

Small multifamily vs. large multifamily and why bigger is usually better

ADUs (accessory dwelling units) and how to make instant equity by building one

And So Much More!

Links from the Show

BiggerPockets Money Facebook Group

BiggerPockets Forums

Finance Review Guest Onboarding

Find Investor-Friendly Lenders

Join BiggerPockets for FREE

Scott's Instagram

Connect with James BiggerPockets

Watch James on the “On The Market” YouTube Channel

Listen to The “On The Market” Podcast: Spotify, Apple Podcasts, BiggerPockets

Grab Scott’s Book, “Set for Life”

Listen to All Your Favorite BiggerPockets Podcasts in One Place

Apply to Be a Guest on The Money Show

Podcast Talent Search!

Money Moment

How To Build A Real Estate Portfolio

ROE over ROI and Why Your “Cash Flow” Number is Deceiving

Click here to check the full show notes: https://www.biggerpockets.com/blog/money-427

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