This episode has opened up my mind to “control growth”. Sometimes I feel I need to kee buying. Right now I have 13 properties and cash flow above $8,000 x month net. I will get control growth mode to buy without rushing and only the best property possible. Thanks!!
Hello! Can you also discuss health care benefits as we all know it is so expensive. If you are quitting your job, I am assuming you are paying thousands of dollars for healthcare insurance.
Some states have affordable health insurance but payments are based on your income. NY has terrific health insurance if you are low income AND can prove it. Good luck if you can't find that proof.
Im cautiously optimistic that this Is actually gonna be about cash flow from longterm rentals . If so I’ll be super happy it seemed like bigger pockets didn’t do this anymore Thank you Henry !
Congratulation on your journey! Great interview! Both of you are great and thank you for sharing! I do not know many real estate investors and thru Bigger Pockets I am able to hear other great strategies…! Thanks!
I'm not a fan of his math. Leaving a job where he makes $60-80K per year to make a minimum of $48K imo is not the best. That $60-80K could easily equate to $78-104K when you factor in benefits like healthcare, vacation and retirement. I cash flow more than that and I would never dream of leaving my job for what I'm making now......
Did you listen to what he said? His job was demanding, being on the road away from family. No amount "benefits" is worth being away from family. He clearly wasn't happy. Now he has FREEDOM
Best way to start if you don’t have the capital…I bought a foreclosure at a auction and flipped it…401k loan has turned into over 600k…I would of never started without it
It’s frustrating when host Henry Washington provides inconsistent stories about his first investment. In this episode, he mentions using his 401k money, while in another, he claims his first investment property was 100% bank financed. BiggerPockets, please establish clear ethics and standards. The audience trusts this channel, but these inconsistencies from Henry create doubts.
Henry has actually spoke about his first investment several times. He pulled money from his wife's 401K to use as the down payment and the small local bank financed the rest because it was such a good deal. He was then able to do more deals like that with his local bank to scale the business. He has mentioned this so many times he is probably telling a cliff note version of the story these days. But I think he has been very consistent with how he started.
Did he say how he was coming up with the down payments to scale to 104 units? Was he just saving his cash flow or was he doing a cash out refinance on other properties?
Cash flow is after all expenses. Kind of like your take home check. His property value is $8 million total (104 doors). If he was to sell, it is technically worth $8million.
You want to reduce your taxes by deducting allowable expenses. As a rental property owner, you can generally deduct your expenses for managing and maintaining the property, including payments that you make related to the property for: Advertising Auto and travel expenses Cleaning and maintenance Homeowners association (HOA) dues Insurance Legal and professional fees Mortgage interest Property management Property taxes Utilities and other services And no you dont need 50 doors to make money, 50 doors with $800 rent (each) is $40.000 monthly income , any costs against that (like loan on 50% of that portfolio as example ) is still nothing , you be still making 6 fiugres a month probably , complete passively as you would have money for manager at this point.
You want to talk to me! I went on Disability from an ATV accident and bought a few houses! Now my Wife and I are looking ahead for Retirement and The Rentals should pay for our Retirement!
@dwatt8004 I guess if you love paying more tax and penaties then live your best life. I've never heard a single bit of financial advice tell you to borrow from a 401k.
@@cvzphotography I agree not to borrow; you're better off cashing out and investing IF you have a solid plan. I would never borrow to go buy a car, or take a trip. I would cash out to invest in rental properties, though.
@@truthalonetriumphs6572 most, if not all, conventional residential mortgages are sold by the originating bank to another lender, then they're repackaged in bulk as mortgage-backed securities.
The exposure these people have to a rough market is wild. Sooo many people are too leveraged and when it goes sideways, watch out for all the bankruptcies.
If you have cash flow then what does it matter? Plus having reserves. Just ride it out. Rent doesn't go down. Plus he's putting 25% down which is conservative
I just purchased a property with 14 percent cash on cash return in Pittsburgh. Looking at real estate as a monolith across the country is silly. There are always good deals.
@@donaldbiden9492from a person who lives in Vancouver , (3rd most expensive city in the world to live in) trust me when I say this, investor is NEVER the issues for housing crisis. It is the RED TAPE that government puts in place that makes the developers hard to build. Please educate yourself
When is 25% EVER conservative? Lol. I mean even if houses are 170k -300k tgats 39-60k down each purchase where is he constantly getting this capital from if even with that many doors a year and net cashflow around 42k a year? I mean thats pretty costly guys?
Because 25 percent down is a lot they are saying it’s conservative . A less conservative Idea would be trying to get deals with 90 percent leverage or more. It seems you agree the 25 would take more cash and be slower and harder so it seems you agree that it’s conservative . As far as it being costly -yes it is costly to build and operate a large rental portfolio
42 doors for 4k in cash flow? that seems like too much work for so little money
He said that was the minimum he wanted to leave his job . He’s forshure making more with 42 doors
Right, I have 3 doors and have $1800 in cash flow in Pittsburgh. Before anyone says I don’t know cash flow, yes this is after expenses calculated in
What about the equity that’s being built while cash flowing 4k consider it like a saving account
@@L0se__ equity is bonus, can’t bank on it. 4k a month is good cash flow but 42 doors should bring in more than that
@donniebaer1992 just bought my 3rd here in pittsburgh...42 doors is crazy right. I know if I had 20 doors here I'm quitting. You selling anything lol
This episode has opened up my mind to “control growth”. Sometimes I feel I need to kee buying. Right now I have 13 properties and cash flow above $8,000 x month net. I will get control growth mode to buy without rushing and only the best property possible. Thanks!!
42 doors to make 4,000 cash flow is crazy.
Yes on the management follow-up episode. Love this.
Hello! Can you also discuss health care benefits as we all know it is so expensive. If you are quitting your job, I am assuming you are paying thousands of dollars for healthcare insurance.
Some states have affordable health insurance but payments are based on your income. NY has terrific health insurance if you are low income AND can prove it. Good luck if you can't find that proof.
Im cautiously optimistic that this Is actually gonna be about cash flow from longterm rentals .
If so I’ll be super happy it seemed like bigger pockets didn’t do this anymore
Thank you Henry !
Congratulation on your journey! Great interview! Both of you are great and thank you for sharing! I do not know many real estate investors and thru Bigger Pockets I am able to hear other great strategies…! Thanks!
I'm not a fan of his math. Leaving a job where he makes $60-80K per year to make a minimum of $48K imo is not the best. That $60-80K could easily equate to $78-104K when you factor in benefits like healthcare, vacation and retirement. I cash flow more than that and I would never dream of leaving my job for what I'm making now......
Did you listen to what he said? His job was demanding, being on the road away from family. No amount "benefits" is worth being away from family. He clearly wasn't happy. Now he has FREEDOM
Enjoyed this episode. Bravo to you for figuring it all out and working hard with your wife to achieve your goals.
Thank you!
If i’m not 3X’ng my monthly salary I’m not quitting my day job.
Very inspiring
2024 goodluck starting out to get any multi. I got beat out 13 times now with me offering over 30k-60k
I personally won’t borrow from my 401K. And I won’t allow my husband to do it either. I believe in keeping these classes separate
Best way to start if you don’t have the capital…I bought a foreclosure at a auction and flipped it…401k loan has turned into over 600k…I would of never started without it
It’s frustrating when host Henry Washington provides inconsistent stories about his first investment. In this episode, he mentions using his 401k money, while in another, he claims his first investment property was 100% bank financed. BiggerPockets, please establish clear ethics and standards. The audience trusts this channel, but these inconsistencies from Henry create doubts.
Henry has actually spoke about his first investment several times. He pulled money from his wife's 401K to use as the down payment and the small local bank financed the rest because it was such a good deal. He was then able to do more deals like that with his local bank to scale the business. He has mentioned this so many times he is probably telling a cliff note version of the story these days. But I think he has been very consistent with how he started.
U seem like u have a personal issue with him. Learn to listen more attentively
PLEASE keep your negative thoughts to yourself.
Sounds like a personal issue you have against him.
😂😂😂😂😂😂
Did he say how he was coming up with the down payments to scale to 104 units? Was he just saving his cash flow or was he doing a cash out refinance on other properties?
A combination of both. While scaling we were putting EVERYTHING back into the properties and portfolio
@@GrantFranckethank you for the response! Looking to be in your shoes someday with achieving financial freedom.
$8 Million in property value and just $48k/month in cash flow? Did I hear that correctly? Something’s off hear!
Cash flow is after all expenses. Kind of like your take home check. His property value is $8 million total (104 doors). If he was to sell, it is technically worth $8million.
He has a 7.2% return which is OK .
Thats $576,000 a year. Seems fair to me
I wonder what his favorite band is.
😅
What VA is available and decent ?
Why was he using conventional loans instead of dscr loans?
Yeah, you need at least 50 doors to make any kind of money. You will get wrecked by taxes and repairs.
You want to reduce your taxes by deducting allowable expenses. As a rental property owner, you can generally deduct your expenses for managing and maintaining the property, including payments that you make related to the property for:
Advertising
Auto and travel expenses
Cleaning and maintenance
Homeowners association (HOA) dues
Insurance
Legal and professional fees
Mortgage interest
Property management
Property taxes
Utilities and other services
And no you dont need 50 doors to make money, 50 doors with $800 rent (each) is $40.000 monthly income , any costs against that (like loan on 50% of that portfolio as example ) is still nothing , you be still making 6 fiugres a month probably , complete passively as you would have money for manager at this point.
Man can’t to hear how he manages all those doors.
You want to talk to me!
I went on Disability from an ATV accident and bought a few houses!
Now my Wife and I are looking ahead for Retirement and The Rentals should pay for our Retirement!
I’m glad we could all subsidize your real estate career while you’re clearly capable of producing income.
What’s his social media
What is a VA? Or what does this mean
Virtual Assistant
Don't borrow from your 401k! 😳
Completely disagree. 401k’s are for sheep.
@dwatt8004 I guess if you love paying more tax and penaties then live your best life. I've never heard a single bit of financial advice tell you to borrow from a 401k.
@@cvzphotography I agree not to borrow; you're better off cashing out and investing IF you have a solid plan. I would never borrow to go buy a car, or take a trip. I would cash out to invest in rental properties, though.
You can withdraw from your 401 as a 1st time home buyer penalty free
Sheep mentality
Im a newbie. So, whats the difference betwen a commercial bank and every other bank?
Difference is in how the loan is held - a commercial loan is one where the bank loans their own money vs. conventional which gets sold by the lender.
@@markcooke4866 the last part of your reply is confusing ... do you mean, it's sold by the bank to another lender?
@@truthalonetriumphs6572 most, if not all, conventional residential mortgages are sold by the originating bank to another lender, then they're repackaged in bulk as mortgage-backed securities.
The exposure these people have to a rough market is wild. Sooo many people are too leveraged and when it goes sideways, watch out for all the bankruptcies.
If you have cash flow then what does it matter? Plus having reserves. Just ride it out. Rent doesn't go down. Plus he's putting 25% down which is conservative
Good ol RD,PD!😂❤
In this market? Good f'in luck.
Hmmmm, I wonder if the market will be different in 3 years??? 🤔🤔🤔
I just purchased a property with 14 percent cash on cash return in Pittsburgh.
Looking at real estate as a monolith across the country is silly. There are always good deals.
They love compounding on the problem with videos like this. It should be illegal to purchase homes as investments.
@@donaldbiden9492😂
@@donaldbiden9492from a person who lives in Vancouver , (3rd most expensive city in the world to live in) trust me when I say this, investor is NEVER the issues for housing crisis. It is the RED TAPE that government puts in place that makes the developers hard to build. Please educate yourself
Thats crazy
When is 25% EVER conservative? Lol. I mean even if houses are 170k -300k tgats 39-60k down each purchase where is he constantly getting this capital from if even with that many doors a year and net cashflow around 42k a year? I mean thats pretty costly guys?
Because 25 percent down is a lot they are saying it’s conservative . A less conservative Idea would be trying to get deals with 90 percent leverage or more.
It seems you agree the 25 would take more cash and be slower and harder so it seems you agree that it’s conservative .
As far as it being costly -yes it is costly to build and operate a large rental portfolio
I house hack with 5% down. 25% is conservative
@@stevend481 what state bro? Im from ny
Is this just rich dad, poor dad promo? Or is it really that motivational?
It felt like a slap in the face for me, shifted my entire perspective. There's a reason it's inspired so many people.
@@Vision3CC Read it and see how you think afterwards.
read it. I gave it to a friend over 20 years ago and to this day he says I changed his life by giving him that book. He is now such a smart investor.
👏👏👏
!