I’ve been documenting my real estate journey for over 2 years now. As I look back at my previous posts and look at my accomplishments and my failures, I’m so proud of myself and I know I couldn’t have done this without the support of my family and close friends who cheered me on and stepped in when I needed them. I’m so grateful for each and every one of them.
With that being said, being in real estate is hard. At least, being a landlord is hard. Things constantly need repair after a while and there is always upkeep that needs to be done.
Last year was full of repairs for me. From, installing new AC units, water leaks under the kitchen sink, replacing washing machine parts, water heater parts, and pipes bursting in the guest bathroom. It was always something and most of these things happened in December. It seemed like I was always fixing something.
Now, I know this goes with the territory. I purposely have not splurged with the cash flow that comes from this property for this reason and I’m okay with it, but it’s definitely making me re-evaluate my real estate strategy. I’m asking myself the questions.
Do I want to purchase more rental properties and deal with broken things all the time because this is not true passive income?
Should I focus more on tax liens and start bidding in other states again?
What other things can I do to increase the cash flow of my business?
Is there a real estate strategy that is true passive income?
I’m still finding the answers to these questions so this year, I will be reading/listening to more books about real estate and determining what my next focus will be.
There is a lot of real estate vocabulary that don’t always make sense at first. I know a lot of words didn’t make sense to me until I actually went through the process of acquiring my first rental property.
Of all the real estate investing language, the words that I heard the most is CASH FLOW and to me, that meant it was the most important so I did some research to learn more about it.
Cash Flow is the money left over after all expenses have been paid. Consider it to be your TAKE HOME PAY or NET PAY.
So, how do you determine if your property is CASH FLOWING or not. I’m going to do the math on my own rental property to see if it’s cash flowing or not.
Monthly Rental Income = $750
Mortgage = $0 (yes, I don’t have a mortgage on this property)
Property Taxes = $49.73 (I took my last property tax bill amount and divided that number by 12)
There is one book that almost all real estate investors have read and that’s “Rich Dad Poor Dad” by Robert Kiyosaki. That book alone has given so many people the drive to think about money differently and strive to gain emancipation from their 9-5 jobs.
I, myself have read the book several times. Believe it or not, I have had the book in my possession since 2000. Had I read it sooner, I probably would be a millionaire by now, but I’m not going to dwell on that.
Instead, I want to turn my focus to the game that kind of goes with the book. It’s called Cash Flow. It’s literally Monopoly and the game is Life in one.
I started playing it online at richdad.com in 2018 and I could not figure out how the game worked at all and I was always the last one out of the rat race.
However, in 2019, it finally clicked and I knew exactly what I was doing wrong. I wasn’t educating myself enough to be a well rounded investor and therefore would often make bad deals and lose money or I was buying stocks high so when it was time to sell, I was losing money or I wasn’t taking risks and missing out on deals because I didn’t want to be in more debt.
Today, I play the game as a reminder to keep pushing. So when I’m bored or I’m feeling stuck on something, that is my go to game.
If you are reading this, I encourage you to play the game. You can play alone or with other players. I suggest playing solo first so you can take your time and read the cards.
If you do decide to play, I’d love to hear about your experience. Leave me a comment and let me know your thoughts.