Tailwind Talks
Tailwind Talks is a podcast for high-performing professionals who want to build serious real estate portfolios without leaving their careers. Hosted by an airline and military pilot turned investor, it dives into actionable strategies for scaling your real estate portfolio while balancing the demands of a full-time job.
Tailwind Talks
My Best Rental Property of 2024 Made $13,926 (27% Return!)
Turning $50,000 into a 27% annual return might sound like an investment fantasy, but that's exactly what happened with my best-performing property of 2024. Join me, Cole – airline pilot, military instructor, and part-time real estate investor – as I pull back the curtain on a four-unit brick building that's defying expectations and generating substantial passive income.
The numbers tell an impressive story: $47,311 in total rental income for the year, with $13,926.56 hitting my bank account after all expenses, taxes, insurance, and mortgage payments. What makes this even more remarkable is that this performance came despite an eviction and while using a property management company to handle day-to-day operations. This is real estate investing that truly works alongside a demanding career – not competing with it.
I walk through every financial detail, from my initial $50,000 investment on this $265,000 property to its current valuation around $350,000. Looking ahead, I also address the looming challenge of an adjustable-rate mortgage reset that will test this property's resilience. Whether you're just starting your investment journey or looking to expand your portfolio, this detailed breakdown offers valuable insights into multi-family investing that works for busy professionals. The path from my first single-family flip to this cash-flowing brick building shows that successful real estate investing is accessible even without millions in capital or quitting your day job. Ready to see how strategic property selection can transform your financial future? This episode is your blueprint.
Subscribe for my next video where I'll reveal my worst-performing property of 2024 – a stark contrast that highlights the critical lessons every investor needs to learn.
What's up everybody. My name is Cole. I'm a part-time real estate investor. I'm a full-time airline pilot and a part-time military instructor pilot. I'm going through my best property of 2024. It's a four-unit brick building and it brought in $47,311 of total income. That's not what we took home. I promise you Expenses.
Speaker 0:This is our property management. This is our utilities. This is turnover when people move out things like that. That is all encompassed within the expenses column $15,406.65. Then we got taxes coming in at a whopping $5,722. And that leaves us with insurance and principal interest. So our insurance for the year not too bad $1,346 for the entire four-unit building plus a two-car garage that's associated with it, and that leaves us with our principal interest $10,909.32. So all of that gets deducted from that big $47,000 number at the top, leaves us with a net gain $13,926.56. Is that a good number? Is that a bad number?
Speaker 0:The way that I would look at it is we put about $50,000 down on this building, bought it for $265,000, put about 50 grand down. We got back 13, just under $14,000 for the year. I think that puts us around 27% cash on cash return, which is something that obviously I'm a big fan of. So I would say this is a really great property. Honestly it's way outperformed what we thought it would. The rents for the two and three bedroom units it's half and half two two bedrooms and two two three bedrooms. Those have gone up quite a bit as it's turned over over the years. We even had an eviction last year and we still came out with that kind of number. So as far as this building goes, super awesome year for it. Because I don't even manage these full time. I have a full time property management company that's running this so I know that I could reduce that expenses number down quite a bit. But it's a necessary evil for working a full-time job. That's just the way it goes. Really did a pretty good job.
Speaker 0:This building is on a five-year arm. We bought it about four years ago, so we've got one year left under 4% on the interest rate and next year we're going to get hammered. It's probably going to be 7%. Let's say plus or minus. A half point is probably my prediction. I don't think they're going to move a whole lot and so we're going to be facing quite a bit more interest in the payments. But I think it's still going to be a solid building, so we're going to want to hold on to that one, I think equity side. We bought it for 265. It's probably worth about 350 or so right now, which is awesome, but we're not going to tap into that. We're not going to cash out no-transcript awesome if we did but that's just going to be idle equity for a while now until we find something better. But for the moment I don't think we want to sell this one, so we're going to hang on to it.
Speaker 0:Like I said, beautiful brick building, really low maintenance and not a whole lot of work orders for this one. And it's quite the opposite of what you'll see in the next video about our worst property of 2024. It's a far cry from this Really pretty decent property and it shows you that you don't have to have millions of dollars in real estate to turn a profit. This property really $265,000, a lot of money and there's a lot of people looking at that saying, man, I wish I could afford something like that. I understand, but I didn't start with this. I started with that single family flip. So this is something that we bought down the road, really thankful to have it. But, yeah, that's our best property as far as a cash on cash return for 2024. And I look forward to showing you our worst property. So hope you guys are doing well. Appreciate anybody that's viewing this video right now.