My family of five are on the road to financial freedom. What that means to us is Mr. and Mrs. JessicaCoaches will no longer have to work time for money jobs! Our goal is to get $2500 in cash flow and a nice cash buffer so we feel safe to say goodbye to the 9 to 5 and hello to more freedom and traveling! This does not mean we will not be working, just that we get to choose what we do and where we do it. We have done this on a very modest income, clawing our way forward, buying fixer upper properties, living in them, fixing them up ourselves, and then renting them out.
Rental A: 890/month average cash flow
Pros: Very hands-off income, fully managed, vacation rental allows us to stay there too.
Cons: Income is very variable and sporadic, get left holding a lot of bills while waiting to get paid. Home is fully paid for and at peak earning capacity for us as we do not self-manage it, equity could be better spent elsewhere. We likely over improved this rental.
Plans: Sell, possible owner financing, or finance to place equity elsewhere.
Rental B: 140/month cash flow
Pros: Very hands-off income, fully managed. 60k from being fully paid off and at that point will be looking at 1000/month cash flow unoptimized. No vacancies in 5 years, rents a little low due to this.
Cons: Looking at some renovations when current occupants leave. Could be making higher returns on money invested in another place. Needs some improvements in order to refinance or sell.
Rental C: 995/month rent no cash flow as we are living and finishing up renovation in main unit.
Pros: Best returns on investment, potential 82% cash on cash return. Looking at 550/month cash flow when both units rented out and managed. 200k to payoff and 1750/month cash flow.
Cons: Still needs some more work, need to be careful not to over improve.
Plans: Hold and rent fully when we leave.
Blog: No Cash Flow, in negatives I do not wish to calculate out yet! ( I think I made $0.27 cents on my sidebar ad.)
Pros: Great growth potential, really learning a lot.
Cons: Quite a bit of time for no upfront rewards yet as I am new.
Plans: Work into affiliate marketing without being sleazy, finish book and market.
Pros: I enjoy it, location independent.
Cons: Can be emotionally exhausting.
Plans: Take on 2 more clients.
Negative Cash flow!
550/month 4% interest, 3.5 years remaining, 20k balance.
Pros: Low interest.
Cons: Could hold back our financial freedom date.
Plans: Payoff with change in rental A.
$1230 cash flow if traveling now and renting out our current residence. We are close to half way there. Potential goals/plans to get us there!
1. Refinance out negative 550 debt.
2. Buy another rental property.
3. Get better returns on Rental A through sale or finance.
4. Blog and Coaching increase.
5. Increase salaries to push us further faster!