How one man is creating tax-free income for life WITHOUT the government involved!
This week we made a new investor successful. He came in newly divorced, he lost all his savings trying to save his marriage and now was regrouping, saying “how do I take care of my self and my future”. At 55 he gives himself 10 years to have $5000 in passive income (though he would like to quit his life-energy sucking job today).
So he took my Cash Flow Academy class, learned the basics of investing over 12 modules and 20 videos and decided to come to one of our Go See trips in Indiana. During the weekend he decided one of the property fit best for his first property. He made an offer on a 75,000 house that made 750 per month with the tenant already in place. It’s in a student housing neighborhood and when this tenant moves he will be able to do what’ more normal which is rent to 3 students (it’s a 3 bedroom house) and get $300 per bedroom or $900 per month. His current year’s cash flow will be $130 per month but his net year income will be $280 per month. And growing. In this town, they sign 2-year contracts for the length of their schooling not like So Cal where they move out each school year to save on summer rent. At these rents, you don’t want to have to find another place and put a new deposit. Especially since parents are co-signing they just rent the whole year for stability.
So with $18,750 down, he will be getting $300 per month in cash flow next year. Most of it is tax-free. If he does this 1ce per year or more he will reach his goal. How? the $300 will rise little by little inflation and he will be paying down on the mortgage. The property values go up so in 10 years he can sell;l 1 or 2 properties and pay off the rest.
He hesitated, almost didn’t come on the trip, the made the offer and almost backed out. Now he is 2 weeks away from getting cash flow for September.