Rental Real Estate Strategy

I spent time writing out, thinking through, my rental business strategy. I figured out a rental model that works in an expensive market while I work full time. Here’s the reflection:

Each payment I make on my portfolio grows my equity ~$600 for each property. My little real estate business is chugging along.

My business plan is to grow my equity positions in each of my NoCo properties until I have a 78% loan to value. Then cash-out refi my money and invest that money into more cash flowing real estate. When I execute the cash out, I want both NoCo properties to cash flow $200+ each month after accounting for operational expenses. That would be ~$500 cash flow for each property every month.

The medium term *way* to level 1 financial independence is Nomad house hacking to growing my portfolio while renting out the property room-by-room. That grand sum of monthly cash flow to fund my personal life will be around $2,000 each month. This will cover all my bills and even provide some savings once my SUV/student loan is paid off.

I’ll Nomad 4, and Nomad 5, and Nomad 6, and Nomad 7 over the next 4 years to achieve level 1 financial freedom putting me at $2,000 per month in true cash flow. Business operating expenses are covered from the cash flow to sustain my portfolio with no personal bad debt plus free housing (thanks to house hacking).

I’m sticking to what I know – house hacking self management. 

My goal at 27 was financial independence by 34 through real estate investing. By this time I’ll have amassed close to 1M in equity and a substantial paper asset portfolio to compound over the decades to supplement my income in my old age while living on the real estate cash flow in the meantime.

This plan aligns with common wisdom I’ve learned through the years. “Hustle in your 20’s, build in your 30’s.”

My 20’s was all about hustling – learning, growing a career I see a future in (digital marketing/sales), networking, taking big risks (two rentals). Now as I enter my 30’s the focus becomes building business systems with strong rental cash flow, a location independent online business, and a gradually growing paper asset nest egg to compound over the decades. 

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