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Six Figure Rental Income Milestone

It’s closing week! I’m super excited for my newest investment property that is closing this week! This property is extra special because not only will it provide a great return, but we will finally hit our six figure rental income milestone! It’s been a 10 year journey, and with each property we’ve become better investors and this property goes to show that no matter the economy or the market, there are still great deals out there.

This property is a single story duplex (two units) in Mount Vernon, WA. Each unit has two bedrooms, one bath and it’s 900 square feet on each side.

This property will add an additional $1082 per month in cash flow – and it’s a 20% return on investment!

Since my last rental purchase, the interest rate has gone up a bit but it’s still a great deal.

You’ll also notice that like my last purchase, this one has a zero vacancy rate and no property management expenses. This is due to it being part of the community living program that many states have which offers housing to people with disabilities. The state provides caregivers and handles all of the care and tenant needs and as a landlord, I am only responsible for the property.

With this new purchase, we’ll receive $21,438 per month in rents from all properties (assuming full occupancy) and our net cash flow will be around $8,683 per month (with full occupancy less mortgages and utilities). We do have a few properties pending sale and a new property closing in Tennessee next week so our portfolio numbers will change slightly but we’ll still be above $100,000 in annual rental income.

Another thing that I look at with each new property additional is our total monthly rents received number. I enjoy running projections and reviewing our financial freedom number.

If we were to stop buying rental properties, in 30 years or less, all properties will be paid off. Even if the rents stayed exactly the same as they are now, we would be 60 years old earning $250,000+ annually and have over $ 3 million in paid off properties. That feels pretty good to me, and obviously the value of the real estate would go up and the rents would probably double in 30 years, but I believe we could live a pretty comfortable life on just the rental income.

The way I see it, we’ve built our own financial freedom portfolio which provides monthly income along with a monthly net worth increase (with appreciation and principal pay down) and tax write offs.

If you’re reading this and thinking that a six figure rental income is an unattainable goal, remember this was a 10 year journey for us. Up until this year, we purchased one rental property per year (except in 2012 when we purchased 2). The key to building your own financial freedom portfolio is to give it time and to cherry pick the best rentals and buy right!

Next week I’ll be sharing about my other closing in Tennessee so stay tuned!

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About the Author

Jennifer Beadles

I’m Jennifer Beadles, and together with my family, we are living the day-to-day of a financially independent family thanks to our rental properties.

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9 thoughts on “Six Figure Rental Income Milestone”

  1. Congratulations! What an awesome milestone.
    Thanks for writing and sharing. Your posts always inspire me to do more.
    Congrats again!

  2. That is great to hear you only purchased one rental a year for most of it. Incredible what consistent effort over a decade can provide!
    I’m looking forward to hearing more about your Tennessee rental, I have one there and will likely be adding a 2nd this year.

    1. Jennifer Beadles

      It is pretty incredible how small, strategic wealth building purchases can suddenly add up! Having patience is one of the challenges with investors, but those who can master it will win in the long run.
      That’s awesome that you’ll be adding another property in Tennessee. I really like the stability of the market@

  3. That is great to hear you only purchased one rental a year for most of it. Incredible what consistent effort over a decade can provide!
    I’m looking forward to hearing more about your Tennessee rental, I have one there and will likely be adding a 2nd this year.

    1. Jennifer Beadles

      It is pretty incredible how small, strategic wealth building purchases can suddenly add up! Having patience is one of the challenges with investors, but those who can master it will win in the long run.
      That’s awesome that you’ll be adding another property in Tennessee. I really like the stability of the market@

  4. Do you feel this kind of success is still attainable now if someone started in 2018? And do you think that location/where you’re doing it in makes a difference? Some areas seem like there’s just so many investors and new investors going after opportunities.

    1. Jennifer Beadles

      Hey Ian! This is a fantastic question, and one I get asked a lot in person, so thank you for asking it!
      Short answer is: YES!
      I absolutely think that there is a ton of opportunity for anyone starting out in 2018, and I actually think there might be better opportunities now than when I started 11 years ago. 11 years ago I had a 7% interest rate on my first duplex, and the rents were pretty low because everyone was buying houses (which ultimately contributed to the great recession).
      Another reason I think now is a fantastic time to get started is because some of our best investments were made within the last year, and those were just normal properties on the MLS, not acquired through any creative techniques or off market marketing.
      I do think that location does make a difference in the long term success of an investment property. I have friends who bought in 2009/2010 in areas that have seen virtually no appreciation or rental rate increases. For me, there has to be a value add element in order for me to make the investment. The easiest value add component to focus on is rents, because rents also control the value.
      In the last few years we’ve seen a larger population become renters than ever before in history. Millennials are choosing to rent longer, and baby boomers are downsizing and choosing to rent instead of buy. This is a huge opportunity for strong rental growth in the next 10+ years.
      You’re right that there are more investors now than there have been a few years ago. This is a good thing because whatever you buy now will be worth more a year or two from now because the demand is there.
      As the market has changed our strategy has changed, and we’ve focused more on new construction multi-family opportunities (small projects that we manage ourselves) and supported living rentals where we can net more. So we’ll continue to buy no matter what the market is doing, and our unique strategies allow us to achieve higher than ordinary results. My advice would be to pick a strategy that works the best for you and go for it!

  5. Do you feel this kind of success is still attainable now if someone started in 2018? And do you think that location/where you’re doing it in makes a difference? Some areas seem like there’s just so many investors and new investors going after opportunities.

    1. Jennifer Beadles

      Hey Ian! This is a fantastic question, and one I get asked a lot in person, so thank you for asking it!
      Short answer is: YES!
      I absolutely think that there is a ton of opportunity for anyone starting out in 2018, and I actually think there might be better opportunities now than when I started 11 years ago. 11 years ago I had a 7% interest rate on my first duplex, and the rents were pretty low because everyone was buying houses (which ultimately contributed to the great recession).
      Another reason I think now is a fantastic time to get started is because some of our best investments were made within the last year, and those were just normal properties on the MLS, not acquired through any creative techniques or off market marketing.
      I do think that location does make a difference in the long term success of an investment property. I have friends who bought in 2009/2010 in areas that have seen virtually no appreciation or rental rate increases. For me, there has to be a value add element in order for me to make the investment. The easiest value add component to focus on is rents, because rents also control the value.
      In the last few years we’ve seen a larger population become renters than ever before in history. Millennials are choosing to rent longer, and baby boomers are downsizing and choosing to rent instead of buy. This is a huge opportunity for strong rental growth in the next 10+ years.
      You’re right that there are more investors now than there have been a few years ago. This is a good thing because whatever you buy now will be worth more a year or two from now because the demand is there.
      As the market has changed our strategy has changed, and we’ve focused more on new construction multi-family opportunities (small projects that we manage ourselves) and supported living rentals where we can net more. So we’ll continue to buy no matter what the market is doing, and our unique strategies allow us to achieve higher than ordinary results. My advice would be to pick a strategy that works the best for you and go for it!

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