\n<\/p>\n
Kent Long<\/strong> wanted passive income.<\/strong> The problem? All those gurus and guides online were only selling a fantasy. The one thing that seemed to actually<\/em> generate income: real estate<\/strong>. When a property <\/strong>that could easily be split into two units came on the market<\/strong>, Kent jumped at the chance. Little did he know this $14,000 down payment <\/strong>would become an entire <\/strong>real estate portfolio<\/strong><\/a> that would help him retire early<\/strong><\/a> from his job<\/strong>.<\/p>\n At 46, Kent bought his <\/strong>first rental property<\/strong><\/a> (just two years ago, in 2024). The purchase price? A mere $70,000.<\/strong> With a small renovation, this property began bringing in $3,000\/month in rent<\/strong> and some serious<\/em> cash flow. Now that there was home equity<\/a> to pull from, it was time to repeat this system.<\/p>\n Kent has now done this same type of deal four times, going from zero units to 10 units in just two years<\/strong>. He\u2019s even<\/em> gotten his young son involved, helping his 20-year-old profit nearly $50,000 from a similar deal! Kent\u2019s close to replacing his income and fully stepping away from his 9-5,<\/strong> reaching early retirement, and dedicating all his time to real estate. He started in 2024 when most people thought real estate investing was past its prime\u2014according to Kent, we\u2019re still not even close!<\/p>\n Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: Kent: Henry: \u00a0<\/p>\n<\/div>\n Help us reach new listeners on iTunes by leaving us a rating and review! It takes just 30 seconds and instructions can be found here<\/a>. Thanks! We really appreciate it!<\/p>\n Interested in learning more about today\u2019s sponsors or becoming a BiggerPockets partner yourself? Email <\/em>[email\u00a0protected]<\/span><\/em><\/a>.<\/em><\/p>\n
Kent Long bought his first rental property at 46 years old, just two years ago in 2024. By the time he\u2019s 50, he\u2019ll have a real estate portfolio that will retire him early. He did all this while working a nine to five, on the road three to four days per week, and without a ton of his own savings. Kent began looking for passive income streams, but all the internet gurus and guides turned out to be selling a fantasy. After hitting a breaking point, Kent saw a house on the market with enough square footage to convert it into two units. This would turn into the beginning of an investing career Kent never imagined. With just $14,000 down, Kent turned one down payment into four properties, making him $5,500 a month in cash flow. And he did it all in just two years. Now he\u2019s close to fully replacing his salary with rentals, allowing him to retire from his job at age 50, 15 years before traditional retirement age.
He did it all starting in 2024. So if you think you are late to real estate, this is your sign to get in the game. What\u2019s going on everybody? I am Henry Washington, co-host of the BiggerPockets Podcast, and today we\u2019re bringing you an investor story with Kent Long from Altoona, Pennsylvania. Let\u2019s bring him on. Kent Long, welcome to the BiggerPockets Podcast.<\/p>\n
Henry, I\u2019m honored to be here. Honestly, BiggerPockets has been a huge part of my real estate journey.<\/p>\n
Well, why don\u2019t you start there? Tell us a little bit about your background and how you got into real estate in the first place.<\/p>\n
Starting off, I was always looking for passive income. So unfortunately, just life costs so much money. So to live normally, you have to have extra income coming in. So my initial thought process was I read Tim Ferriss, four-hour work week, and I started an Amazon business. So I made two products on Amazon and I had two different manufacturers in China that would send stuff directly to Amazon. So ideally it makes sense, then that\u2019s totally passive. You watch all the YouTubers and they say how easy it is and you can make extra thousand bucks per unit that you\u2019re selling. The kicker is it costs so much money to advertise on Amazon that you don\u2019t make any money. So then after that, I stumbled on BiggerPockets and started listening to just real estate. I\u2019ve always been like Mr. Fix It at home and can fix things. And my dad\u2019s a union carpenter, so I\u2019ve always had a background of building and fixing things.
And then about two years ago when I was going through a bad divorce, I had an option and I could either rent because my wife was keeping the house, or I could look at either flipping a house, live in flip, or buy a property that I could fix up and then pull some equity out. So that\u2019s my initial dive into it.<\/p>\n
About when did you start researching real estate? And then about when was it when you bought your first real estate deal?<\/p>\n
My job, my nine to five, I travel a lot. So I\u2019m in the car between two and four hours, three to four days a week. So it would just be podcast after podcast, whether it was entrepreneurship, and then eventually about three years ago to two and a half years ago, really just diving into BiggerPockets and just constantly listening to it in the car. So in July of 2024, I was looking at my first property. My real estate agent at the time had a property that used to be a duplex and it was converted to a single family, but all I literally had to do was put a door on it. So you walk in, the first floor would\u2019ve been one apartment and then there was another door that went upstairs for the second apartment. So literally just putting a door on it would make it a duplex.<\/p>\n
What city was this?<\/p>\n
In Altoona, PA.<\/p>\n
Altoona, Pennsylvania. And how much did you pay for this large single family home that was a duplex, turned into a single that you wanted to turn back into a duplex?<\/p>\n
But I actually turned it into a try.<\/p>\n
We\u2019ll<\/p>\n
Get to that. So purchase price is $70,000.<\/p>\n
70 grand? Was it just sticks? Was it livable?<\/p>\n
All new LVP in the first and second floor and the third floor, all LVP already done. And everything was freshly painted.<\/p>\n
Is this just prices in this market? How\u2019d you find this deal? Was it on the market? Was it off-market deal?<\/p>\n
It was on the market for a while. So that house fell through a couple times. They sold it twice maybe, and the loan didn\u2019t go through right or something happened. So then the seller just needed it kind of off his plate. But at most, it was on the market for 80 or 90.<\/p>\n
Wow. I just didn\u2019t realize the price points were that low.<\/p>\n
Well, the price points will get better and you\u2019re going to be. So that\u2019s in the high end of what I paid.<\/p>\n
Okay. All right. All right. So you paid 70. It was a single that used to be a duplex. You ended up converting it back to a multifamily. How much did it cost you to renovate this property to get it turned into, I guess you said, a triplex now?<\/p>\n
$10,000.<\/p>\n
Okay. Did it cost 10 grand because you have the skills to do all the work yourself or did it cost 10 grand just because it was in pristine condition and you didn\u2019t have to do much?<\/p>\n
So I didn\u2019t have to do a lot, but I do all of the work. So the idea is I have a background of redoing kitchens and redoing bathrooms and I can do flooring and painting and everything else, but that\u2019s all that I had to put into it to convert it into a try. I had a little bit of cabinets I had to add into the kitchen, and then there were some cabinets up on that second floor that I used in the third unit, which was in the back.<\/p>\n
Can you estimate what you think the renovation would\u2019ve cost had you had to hire a contractor?<\/p>\n
I mean, I always double it. So it\u2019s 20 to 30, 20 to 30 grand. That\u2019s<\/p>\n
Fair. That\u2019s fair. Okay, cool. That paints a good picture of about the level of work that needed to be involved with this property. And so then you converted it to a triplex. I know I\u2019m probably getting ahead of myself, but I\u2019m so curious because of that price point. What are the rents for the individual units?<\/p>\n
So they basically added a business off the back side of this house. That unit, I furnished it, and then there\u2019s a makeshift kitchen back there too, and I get 850 for that little unit, and it\u2019s as big as a whatever, hotel room.<\/p>\n
Okay. So you\u2019re cash flowing off one unit. Allright, what else you got?<\/p>\n
Right. So then on the first floor, one bedroom, I get right around 900 a month for that.<\/p>\n
And the third unit?<\/p>\n
1250.<\/p>\n
What?<\/p>\n
Because it\u2019s three bedroom, and this is off of a $70,000 home. Holy<\/p>\n
Crap. $70,000 single family, $10,000 renovation, which includes sweat equity, which is fine. And you\u2019re able to bring in 850, 900, and 1250 for a total of $3,000 a month in rent on an $80,000 all-in purchase? Right. That\u2019s a good stinking deal. Wow. Congratulations on that. That\u2019s impressive.<\/p>\n
Thank you. Thank you. We always want to hit that home run in the first one.<\/p>\n
All right. So how did you structure the financing for this? Did you pay out of your pocket? Is it a conventional loan?<\/p>\n
It was a 30-year conventional loan.<\/p>\n
So you put down 20%, 25%? Yeah,<\/p>\n
14 to $20,000.<\/p>\n
What\u2019s your debt service? So what are you paying the mortgage on that property? It\u2019s<\/p>\n
So<\/p>\n
Low, he doesn\u2019t even know, guys. He was like, \u201cI don\u2019t know. 50 bucks eyes.\u201d<\/p>\n
All of my loans are between four and $600.<\/p>\n
$600 a month mortgage, bringing in $3,000 a month. Even you put $14,000 down after a few months, you got your money back.<\/p>\n
Oh, yeah.<\/p>\n
What a deal. What a deal. Now, I\u2019m very curious now as to what the numbers look like on this second deal, and we\u2019re going to dive into that after this quick break. All right, we are back on the BiggerPockets podcast. I am speaking with investor Kent Long, who has just shared his very first real estate deal with us, and it was a banger. So Kent, tell me about this next one.<\/p>\n
So first property, fix it up, basically added two units because it was a single family, turned it into a try. Because I turned it in a try, I got to be able to pull, I mean, it\u2019s 80% of the appraised value, so then I was able to pull out a $78,000 HELOC.<\/p>\n
Well, I want to caveat one thing though, because I just want to make sure that we\u2019re clear on the terms. I love this strategy, by the way. So you essentially did a burr, except I call it a modified BRRR. It\u2019s a BRR. Instead of a refinance at the end, it\u2019s a HELOC at the end. And so you actually didn\u2019t pull money out, you just got access to a line of credit. I like this strategy more than the BRRR. And the reason I do is because when you refinance, you\u2019re getting a new loan at a higher amount, which then lessens your cash flow. But because you just pulled a line of credit, you gave yourself access to the equity, but you didn\u2019t get a new loan at a higher amount. Your loan stays the same and you only pay more when you borrow the money against the HELOC.
So he was saying he pulled money out. He didn\u2019t necessarily pull it out. He got access to it. I think it\u2019s a fantastic strategy. I\u2019m glad you went that route. So you\u2019ve now got access to this $70,000 line of credit, and so that gives you buying power, right? So what did you do with that?<\/p>\n
I bought another single family right around 1700 square feet, and I was going to turn it into a duplex, but I bought it for $30,000. So<\/p>\n
You paid cash from your line of credit. So you pulled out 35,000. Again, why I like this strategy? Because he didn\u2019t refinance, he didn\u2019t get a new loan. He was able to use $35,000 of the 70,000 he had access to. So you\u2019re actually only paying interest only payments on 35,000 versus having, if you did on a refinance, you\u2019re essentially paying for all the money at once. So you pull out 35,000, you pay cash for a house that you want to convert from a single to a multi. Now, were you specifically targeting single families that had the potential to be multis or was this just coincidence?<\/p>\n
Ideally, I wanted duplexes or tries. They\u2019re the easiest to renovate. I mean, the whole BRR process is easier for. The whole idea of duplexes and tries is I like one renter to pay the mortgage and one renter to pay me. So when you look at multifamilies, it\u2019s just a cash flow and that ideally has always been my goal.<\/p>\n
So 35,000, how much did it cost you to renovate this one?<\/p>\n
20,000 all in.<\/p>\n
What are you getting in rents on those units?<\/p>\n
A thousand for the two bedroom on the upstairs and then 900 for the one bedroom.<\/p>\n
So $30,000 purchase, $20,000 rehab, all in for 50, bringing in $1,900 a month. Again, that is a fantastic cash flowing deal. Did you finance this one the same way or did you do it a little different?<\/p>\n
So when I went to get that refinanced, that\u2019s when I went the commercial loan route, which I really, I love it. It\u2019s just so much simpler, so much quicker. So then it got reappraised at 110. So I pulled an $85,000 loan out on that and was able to pay off $20,000 of credit card debt and pay down that $30,000 that I initial investment.<\/p>\n
Okay, because you paid cash and you probably funded the renovation out of your own pocket. So you\u2019re all in 50, but it\u2019s 50 cash. So then you went and you got a loan on the property itself for 80. That gives you some cash in your pocket to pay off your debts. And an $80,000 loan bringing in $1,900 a month is still phenomenal cash flow. Plus you were able to pay off credit card debt, which essentially increases cash flow too, because now you\u2019re not paying those credit card bills. That\u2019s awesome, man. And I know a lot of people are listening and they\u2019re thinking, \u201cMan, well, I can\u2019t buy $30,000 houses.\u201d Well, A, you can because you can invest out of state if you want to. And B, there\u2019s markets like this all over the country. So don\u2019t just believe the lie of if you\u2019re paying less than $100,000 that you\u2019re getting some piece of crap that is going to cost you more to fix it up than it is to sell it.
There are plenty of markets where the price points are lower. There\u2019s obviously risk to those things. Usually markets with lower price points like this don\u2019t have a ton of appreciation. So I\u2019m curious, is that what it\u2019s like in your market? Do these properties appreciate with the national average or do they kind of just sit flat? It<\/p>\n
Would sit flat. I mean, when it comes to risk, I like to think of it as lower risk than anything else because \u2013 It is low risk. The money that I\u2019m putting into it, the amount of money that I would invest into a $30,000 house compared to a $300,000 house, I\u2019m just mitigating risk just in the initial price point.<\/p>\n
It\u2019s a sliding scale, right? It\u2019s a seesaw. Typically, if you\u2019re in a market where you\u2019re getting tons of appreciation, cash flow is none, negative, hard to find. Inversely, when you\u2019re in a market where you can get phenomenal cash flow, I mean, we\u2019re talking a debt service of 600 bucks, bringing in $3,000. That is phenomenal cash flow, but you\u2019re not going to get a ton of appreciation. That\u2019s just how real estate tends to work. So you need to figure out, if you\u2019re listening to the show, to figure out what your strategy is, you have to set your own goals and then buy properties in a market that allow you to meet those goals, right? There\u2019s going to be ups and there\u2019s going to be downs, there\u2019s going to be risks, and you want to be rewarded for the risk. I think that this is a decent strategy if you\u2019re trying to build up cashflow, heavy cashflow market.
Before we move on to this next deal, Kent mentioned that he used a HELOC on his first house to fund his second property. And if you\u2019re a BiggerPockets Pro member, we have a new perk with our HELOC partner, Avan, that can get you a $400 statement credit. So go and check that out if you\u2019re a BiggerPockets Pro member. All right, Kent, I love these deals. I think this is a good strategy in what seems to be a very highly cashflow heavy market. You\u2019re from the market, you live in the market, so you understand that market. I think that that\u2019s a smart investment plan. Paint us a picture here in terms of time. The first deal was 2024 in July. How long was it between that one and this deal?<\/p>\n
I got this deal done in February of 2025.<\/p>\n
So about seven months later you did this next deal. Okay. That\u2019s a reasonable timeframe. You did one deal, you learned some lessons, you go and do another deal. That\u2019s great. Okay. And how long did it take you from deal two to deal three?<\/p>\n
It took a little bit longer because that\u2019s when I got my son involved into this real estate journey. First one was a home run. The second one was going really well, and I knew that it was going to work out because I already had the cash. And another duplex while I was working on my second property, another duplex came up for $44,000.<\/p>\n
Okay. This was on the market listed?<\/p>\n
This is on the market listed for 44,000. All<\/p>\n
Right.<\/p>\n
I had to get there immediately because I knew when duplexes come up in Altoona, they go quickly.<\/p>\n
How old was your son at the time?<\/p>\n
19.<\/p>\n
Okay. Okay. Awesome.<\/p>\n
So he\u2019s a 19-year-old. He was in college, but over the summer, he was going to fix a duplex up, basically do the same thing, pull equity out of it, and then do one property a year for the next four years while he was in college. So I got the house for $44,000. So I put 15, $16,000 down on it.<\/p>\n
Okay. Did you use the HELOC to put the money down or did you?<\/p>\n
Yeah.<\/p>\n
Yeah, at a boy.<\/p>\n
I did a commercial loan on this as well because I\u2019m working with a local bank. So again, I think it\u2019s benefits to be working with your local banks because they know the area. They know how to make things work.<\/p>\n
So typical structure of a loan for a local community bank, if you\u2019re doing a fix and flip or some sort of construction loan, it\u2019s 85% of purchase, 100% of rehab. So you got to put 15% down. So that was your 15% down payment you were talking about. You borrowed that from your line of credit on deal one. How much did the renovation of this duplex cost<\/p>\n
You? I think we took a $15,000 renovation loan with this commercial loan. So as you\u2019re doing the work, they\u2019ll pay you back, but we really needed about 25,000. So it was, again, a big property and the flooring is what we didn\u2019t figure it out right. And then the caveat to all this, we\u2019re lucky as in my dad as a union carpenter and would come down two to three days a week and help him fix this property up.<\/p>\n
So you got the whole family involved, grandpa, dad and son all working on this property. That\u2019s super cool. So total budget was about $25,000, it sounds like, on the renovation of this duplex. You paid 44, you\u2019ve got 25 in it, so you\u2019re all in for just under $70,000. And what are you renting those units for?<\/p>\n
1,200 and 1,200.<\/p>\n
That is awesome.<\/p>\n
Yeah, it was fantastic. And then we refinanced this and he was able to pull out $72,000 out of his first property.<\/p>\n
As a 19-year-old.<\/p>\n
Yeah. Wow. Wow. He turned 20 till he refinanced it. But at 20 years old, we went to a lawyer and they wrote him a check for $72,000.<\/p>\n
How scared did that make you?<\/p>\n
No, he\u2019s the most frugal kid you\u2019ll ever meet. I knew he won\u2019t spend a dime of it.<\/p>\n
Oh, I can\u2019t imagine getting a $70,000 check at 19. I<\/p>\n
Was<\/p>\n
Not that responsible.<\/p>\n
No, he does great with his money. So he did pay me back. So I put the initial investment in and had to fund some of the flooring and some of the kitchen renovation. So he was able to pay me back $18,000. But then he\u2019s still sitting in the bank with over $50,000.<\/p>\n
So what made you want to pull your son into this deal? What brought that about?<\/p>\n
Just financial security. It\u2019s financial future. It\u2019s making, one, giving him the opportunity to be successful later in life. I mean, he\u2019s going to have this property for the next 30 years, just cash flowing 1,500 to $2,000. He can pay it down. He could sell it.You\u2019ve always talked about having multiple exit strategies, and that\u2019s what you have when you buy these properties. As long as you think about different ways of, do you want the cash flow? Do you want the HELOC? Do you need more cash? Are you going to do another deal? So we kind of talked through all that, but because I was so fortunate on my first two deals and because the price points are so low, we\u2019re kind of mitigazing that risk, which is great.<\/p>\n
What was it like working on this property with your dad and your son, seeing something go from what it was when you purchased it to this investment property that\u2019s producing income?<\/p>\n
It\u2019s fantastic. I mean, it\u2019s nice word of my son and then my dad comes out and helps out. I mean, we just have a good time. My nephews would come down and do some painting. So almost have a party and just hang out and then we just feed everybody and get free labor. It\u2019s fantastic.<\/p>\n
All right, Kent, thanks for sharing that story. That\u2019s super cool, getting your family involved and still pulling off another amazingly well cash flowing deal. I\u2019m assuming there\u2019s some more and we\u2019ll dive into those deals right after the break. All right, we are back on the BiggerPockets Podcast. I\u2019m speaking with investor Kent Long, who has pulled off some pretty amazing cash flowing deals. Now we\u2019re onto what looks like deal four-ish, if you want to count deal three. It was your son\u2019s deal technically, but you helped him with that. So deal three and a half. So what\u2019d you do with deal three and a half?<\/p>\n
Found a duplex, I believe it was on the market for 65 and I got it for 55 in pretty good shape. The kicker was there was tenants on the first floor already, so ideally I\u2019m going to keep them. And then I actually, you\u2019re not going to love this, I paid a contractor to do the work.<\/p>\n
No, I love that. I think you should absolutely do that.<\/p>\n
So I got a $25,000 renovation loan with my commercial loan. The $25,000 paid for the second floor renovation, so painting, putting in a kitchen and flooring.<\/p>\n
Did you leave the tenants on the first floor at market rents or did you have to raise rents?<\/p>\n
So their rent was $450 a month.<\/p>\n
Okay.<\/p>\n
So I came in and was like, again, I took this from one of your previous podcasts is not just jump them up to market rate. So I just slow rolled them, I\u2019ll increase you a hundred bucks a month for multiple months and I need you to eventually get to 750. 750 is still a little below market, but they\u2019re paying all utilities. And while that renovation was going on, they were covering the mortgage<\/p>\n
Because<\/p>\n
It\u2019s a $55 loan.<\/p>\n
Tenants aren\u2019t stupid. They understand that you have a mortgage and taxes and insurance. Now they may not want to pay more rent, but they understand. And I have always found that if I just sit down and am honest with people, share the plan and give them a say in how we get there, they\u2019re so much happier. Market rents are X. That\u2019s the first thing, right? It\u2019s to show them. If you move, you\u2019re going to be paying 850 a month for the same property, or I can let you stay here for 750. That\u2019s where I got to get you to. Can you help me come up with a plan to get you there? If I\u2019ve got to tweak your rent every month, how much can we afford to go up every month? And when I give them a say in it, they don\u2019t feel like I just did something to them.
They feel like they got to work with me to keep them in their home, which is always a better strategy. So purchase price, 55. Renovation, 25. So you\u2019re all in for $80,000 and you got the one tenant on the first floor up to 750 a month in rent. And what were you able to get in the second floor?<\/p>\n
$1,000 for the second floor, two bedroom.<\/p>\n
All right. So 1750 gross rents on $80,000 of debt. This is a recent deal that you found in an affordable market that produces a ton of cash flow. There are markets like this all over the country. I love that you\u2019re using strategies like lines of credit and community banks to grow your business. That is exactly how I grew my business. And I like the pace at which you\u2019re doing these deals because it seems like you\u2019re doing about a deal every six months or so. Is this your only job or are you working some other job at the same time?<\/p>\n
So my nine to five as a regional manager, as an occupational therapist, I oversee 18 skilled nursing facility therapy departments.<\/p>\n
So you\u2019re doing this part-time with a full-time gig where you\u2019re traveling a ton. How much time you\u2019re putting in on a weekly or monthly basis into your real estate business?<\/p>\n
I wouldn\u2019t even say an hour or two a week. If I do three or four a month maybe.<\/p>\n
Yeah. I like this. I like the story because most real estate investors are mom and pop folks just like you and just like me to some level where you do a few deals here and there, you get them stabilized, and then you move on to the next one. You do it in your spare time. It\u2019s not something that you\u2019re taking all of your focus and you\u2019re able to still produce good income and cash flow when things are done the right way. I love that you\u2019re leveraging the community banks. I love that you\u2019re leveraging HELOCs and lines of credit, but this is just basic real estate investment strategy. This isn\u2019t new. This is literally things that have been around for decades. Anyone can do this kind of strategy. So your goal getting into this was to buy assets, produce passive income. Where do you feel like you are on that roadmap?
Because you\u2019re still self-managing, so there\u2019s some work involved there. You\u2019re doing some of the renovations here and there, so there\u2019s some work involved there, but you\u2019re also producing a good amount of income. So how many more deals do you think you need to do before you can really start to remove yourself from some of those things?<\/p>\n
My initial goal was to do 10 in five years, and I think I\u2019m going to get eight done in probably maybe three and a half years.<\/p>\n
Before we get out of here, let\u2019s kind of give everybody a recap of your portfolio. So how many deals have you done? How many doors do you have? How much cash flow is it producing?<\/p>\n
I have four properties, two duplexes, two triplexes, and then they\u2019re cash flowing $5,500 a month currently right now. And that\u2019s in a two-year timeframe.<\/p>\n
That\u2019s pretty cool. And that includes your fourth deal, which looks like you bought a duplex for around 90 grand and you turned that one into a triplex?<\/p>\n
Correct. That one was the biggest renovation and then the biggest workload for me for sure. The duplex was already done. There was new floors, some carpeting. Both of those rentals were ready to go when I bought the property. I put two renters in there immediately, and then I\u2019m getting 950 each for both of those. And then the first floor was an old corner store and it was a disaster. It was dirty. There was an old deli fridge still sitting in there that I had to use a sledgehammer to get out of there because it was so big. And then I took about two dumpster fulls of garbage to even get that first floor cleaned up, and I converted into a three bedroom, one bath on that downstairs unit.<\/p>\n
And what was the budget for that renovation?<\/p>\n
About $30,000 I put into<\/p>\n
This. So you\u2019re all in for 120 and you rented that back unit for how much?<\/p>\n
1200.<\/p>\n
So that puts you at total gross rents of about $3,100. $3,100 on $120,000 of debt is phenomenal cash flow. And so this one was an on the market duplex again as well.<\/p>\n
Correct. Yep. I just got it refinanced and I\u2019m able to pull 83,000 out of it, and then I\u2019m paying my HELOC down to zero with that. Oh boy.<\/p>\n
Yeah.<\/p>\n
And you start all over again.<\/p>\n
So after all of these deals, what\u2019s the goal going forward? Are you going to try to get to 10 in your timeframe or are you going to evaluate yourself after this eight?<\/p>\n
Ideally, I would love to get four more in the next year and a half.<\/p>\n
Okay.<\/p>\n
And when I turn 50, a year and a half from now, just kind of be done and then retire my nine to five<\/p>\n
Job. All right, Kent, thank you so much for sharing this story. This is such a cool story. What amazing deals. I love that you\u2019ve done this in a recent timeframe. I love that you\u2019re buying the properties on the market and I love that they\u2019re producing cash flow that is getting you to your goals, seems like ahead of time to where you can actually leave your nine to five. I love that you were able to bring in your son and your dad and have everybody work together to build wealth because that\u2019s truly the dream. Those bonds and those memories last forever, and it\u2019s pretty cool to be able to share that with your family. So thank you for sharing that story.<\/p>\n
Yeah, I appreciate the time. Thank you so much, Henry.<\/p>\n
Thank you very much. And thank you guys for listening to this episode of the BiggerPockets Podcast. Again, if you have a story you would like to share on the podcast, then you can go to biggerpockets.com\/guest and you can apply to share your story with us right here on the BiggerPockets Podcast. As always, thank you for listening and we\u2019ll see you on the next episode.<\/p>\n