She Bought 22 Rental Units and REGRETS IT! But It's HER FAULT!

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  • Опубліковано 29 січ 2025

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  • @DionTalkFinancialFreedom
    @DionTalkFinancialFreedom 16 днів тому +26

    She tried the Financial firefighter method.
    Growing a lot in those first two years.
    There is a reason why we say it’s a ten year journey.
    She even said “I regret building and scaling this fast”

    • @jarodfranklin1081
      @jarodfranklin1081 16 днів тому +3

      Imagine her buying 1. Figuring out that she needs to improve underwriting. Then buys a better one the next year. And so on so forth.

    • @Coast_to_Coast
      @Coast_to_Coast 16 днів тому +1

      Agreed!

  • @Coast_to_Coast
    @Coast_to_Coast 16 днів тому +30

    People constantly don’t consider maintenance and vacancies in their numbers. Big mistake!

  • @derekrice5203
    @derekrice5203 16 днів тому +29

    Stephanie has ambition to spare. If she can get through 3-4 years and focus on paying down some property’s she will skiiing down the mountain instead of climbing it. Would love to see an update in a year or so.

    • @Joe-dw1dy
      @Joe-dw1dy 16 днів тому +2

      She has only been in this process for 18 months, and has been buying properties up to this point. This is way too much based on how many properties she bought. You said it right she has to stabilize.

    • @johnwick-iy4tz
      @johnwick-iy4tz 10 днів тому

      This this right here

  • @samuelmoijueh2030
    @samuelmoijueh2030 16 днів тому +18

    I like Dion's rule of thumb. You shouldn't live off the rental income until it's at least 4 times your monthly expenses.
    I will also say as you're scaling, you should de-risk your portfolio. Keep more money in reserves. Get three months ahead of the mortgage payments (my favorite strategy). Maybe pay off a property or two by selling off the poor performing ones. Reinvest in capital expenditures. Etc.

    • @NetworkBruh
      @NetworkBruh 15 днів тому +2

      Dion has the greatest rules of thumb for real estate investing

  • @TL-wy1nk
    @TL-wy1nk 16 днів тому +13

    Any business you start requires reserves. I don't think she should have grown that fast, and then felt too much pressure. If she started out more slowly, she could have built in more comfort.

  • @JohnWilliams-nj3vl
    @JohnWilliams-nj3vl 16 днів тому +15

    So glad an avenger found this. So many issues about this video. 1. She needs to explain her actual method of calculating cashflow. Does it include the 15% removal of Capex, maintainance, vacancies? She doesnt even say. Also, 22 units in 18 months is a metoric rise. She uses credit cards and doesnt have reserves or saved up income for make ready. I'm all for a fast jump in, but you got to crawl to run and it feels like the didnt.

  • @JoeyXB
    @JoeyXB 13 днів тому +3

    I’m confused by many aspects of this. 1)She cash flows 600 a month on 22 units.. there should be zero issue of having cash. She should able to tank right through bad maintenance months. 2)she apparently had no w2 Job while she acquired 22 properties in 18 months? How? Where did she get these mortgages from with no money down and no w2? If she used hard money lender than there’s no way she got a duplex that brings in 2400 and only cost 1300 unless it’s in the complete ghetto. Which could Be the exact problem
    Side note - you know what’s way less risky than starting real estate investing in multi family? SFH… ones that aren’t in warzone ghettos

  • @eanderson216
    @eanderson216 16 днів тому +5

    The fact that she said a roof goes out, shows she has no idea! Roofs don’t go out like an appliance! There is plenty of lead time knowing when a roof is getting bad.

  • @The_HomeHandyman
    @The_HomeHandyman 16 днів тому +5

    Great video Mike. I really liked the way that you advised her without demeaning her and what she had done. As alway, you were very concise and articulate. I hope that she reaches out to you. By the way, congrats on getting to 10 K + subs!

  • @soccerbruh69
    @soccerbruh69 17 днів тому +16

    Scaling too fast as the vein of many Real Estate Investors existence and a rookie move that has bankrupted more people than it's helped

  • @zero2hero308
    @zero2hero308 16 днів тому +12

    The first 5 years are known to be tough.

  • @buzztune-ft6lc
    @buzztune-ft6lc 16 днів тому +5

    Thanks Mike. This is must watch if someone closes on their first rental and looking at their 2nd one.

  • @zionrose007
    @zionrose007 14 днів тому +1

    Mike you broke this down masterfully. It seems she was never stabilized. Running numbers is life or death.

  • @BrianLiamson
    @BrianLiamson 16 днів тому +4

    Agreed. She took too much risk by scaling too fast.

  • @lifeforgod07
    @lifeforgod07 16 днів тому +6

    I know Stephanie. This is my market and I spoke with her and her business partner a couple of years ago before they started their business. She's the stereotypical A type personality that's a little too ambitious for her own good. They weren't experienced enough in life to understand that 18 months is baby beginner time.
    Cash flow is a point of confusion within the real estate community, which she clearly misunderstood. Most definitions are wrong. In business free cash flow is net income then adding back non cash expenses like depreciation and amortization. It's definitely not rent minus mortgage.

    • @HappyandBlessed-wj7gc
      @HappyandBlessed-wj7gc 15 днів тому +1

      What's the market ?

    • @lifeforgod07
      @lifeforgod07 15 днів тому +1

      @HappyandBlessed-wj7gc Central PA (LancasterDauphin county and surrounding areas)

    • @HappyandBlessed-wj7gc
      @HappyandBlessed-wj7gc 15 днів тому +1

      @lifeforgod07 Yes that's kind of the area that I was thinking it was.

    • @lifeforgod07
      @lifeforgod07 15 днів тому

      @@HappyandBlessed-wj7gc Overall I think it's a great place to invest. Plenty of upside in the future, high demand for rentals. But it is still very competitive, tough to find deals that pencil. She's great at finding the deals, just needs to be more conservative in her approach

    • @tracy3066
      @tracy3066 14 днів тому +1

      My question is how did they get the loans to buy 22 properties? Especially being new. It couldn’t be rental income based because normally for that you’d have to show a couple years of said income. Some things aren’t making sense.

  • @OldGuyREI
    @OldGuyREI 17 днів тому +4

    Great Analysis of this video Mike. Good to see you out here again. The " Unknown " Avenger. 😅

  • @JasonJFlippingLife
    @JasonJFlippingLife 15 днів тому +2

    Loved your advice. My overarching strategy is to flip and funnel a percentage of profit to properties i cherry pick for long term buy and holds.

  • @oldstocks
    @oldstocks 15 днів тому +1

    I know Stefanie and have rentals in the same market (I bought 8 since 2019). The stabilization is key lesson to learn for both of us.

  • @AllNighterHeider
    @AllNighterHeider 17 днів тому +3

    Great breakdown
    Thanks Mike

  • @Coast_to_Coast
    @Coast_to_Coast 16 днів тому +2

    Thanks for the video Mike!

  • @HighPowerOptionsTrades
    @HighPowerOptionsTrades 16 днів тому +1

    Great show I love when analyst critique others in the same industry 🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥

  • @razamian7379
    @razamian7379 16 днів тому +4

    I have a hundred homes and hired a property management company
    Helped free up so much free time 😊

  • @Joe-dw1dy
    @Joe-dw1dy 16 днів тому +2

    This is for Stephanie, did you forget Capex expenses. People who hate RI is that they do not put money aside for liabilities. You’re right Mike. She should Stop counting money before she receives it. 18 months, in the business and doesn’t have any money for ongoing maintenance. I took 2 years before I started drawing on my investment just so I can have the property renovated enough, to relax.

  • @kenwheeler1327
    @kenwheeler1327 17 днів тому +1

    Great "basics" video, Mike! Very sound advice and well presented. Hopefully she watches this and maybe is able to re-set and stay in the race.

  • @timursalikov5911
    @timursalikov5911 16 днів тому +3

    I love that she casually dropped the term real estate “guru” when referring to herself.. like other gurus won’t tell you the truth. Yet she didn’t budget for repairs in his own rentals. 😅

  • @RoeVenturesLLC
    @RoeVenturesLLC 2 дні тому

    3:52 10 grand minimum for roof 4:14 hot water tank is 400 but could cost 600 to install it 14:17 file insurance claim if roof is bad repairs mostly out of pocket is true

  • @claudenobles779
    @claudenobles779 День тому

    I watched her video, your comments are thoughtful 👍

  • @Aaron_R
    @Aaron_R 14 днів тому +1

    Managing 22 rental properties is a full time job and then some. She's going to have some evictions, advertising, 11pm phone calls saying my bathtub won't drain or the heat isn't worker, showing property to prospective tenants, screening tenants, ect.... My only question is, what is she making per hour? It is possible for her to be making below what a property manager would make per hour.

  • @ryel8427
    @ryel8427 14 днів тому +1

    Agreed she's misusing the word cash flow. Cash flow should be AFTER you've put aside money to pay for maintenance, repairs, vacancy with each unit. If you don't have a buffer of cash for each property then you shouldn't be buying the next one...

  • @geraldd8797
    @geraldd8797 16 днів тому +1

    Great advice you gave her. I hope she does contact you and have you as Mentor. She'll be fine with a little patience and quality advice.

  • @WithClint
    @WithClint 16 днів тому

    Great video Mike. She grew really fast. It can definitely bite you in the butt doing the no down brrrr strategy. Paid off properties are what I have always strived for and higher cashflow is a huge plus. Hope t see you next month in Vegas. Take care friend.

  • @Build2RentTexas
    @Build2RentTexas 17 днів тому +1

    Thanks Mike. Good video to illustrate what NOT to do, and explain what you really need to understand as you get into investing. It seems like they listened to Bigger Pockets episodes from a few years ago when they promoted this type model all the time.

  • @tracy3066
    @tracy3066 14 днів тому

    New to your channel and I agree that it should be somewhere in the middle. I’d love for you to sit down and chat with her! (Especially since she wasn’t clear with her numbers) Also as you said it looks like she has some nice multi-family properties which it what you need right now) Subbing to check out your other videos.

  • @MrWho-vb6hg
    @MrWho-vb6hg 12 днів тому

    How much a unit rental property? It is fast 22 unit in 2 years.. how much down payment is needed?

  • @kinfolks3725
    @kinfolks3725 День тому

    Hello Mike what if you have 2 owners as landlord do both landlords have to sign or just 1

    • @kinfolks3725
      @kinfolks3725 День тому

      To apply for section 8 to accept your rental property for rent and owned by 2 people is 1 signature requirement Or both needed for for your application to be considered

  • @Aaron_R
    @Aaron_R 14 днів тому +1

    Why 30 or 100? Why not just 2-8... The only answer I got is greed. Plus ieach additional income has diminishing returns to improving your life. The difference between 1 million and 10 million a year is small in terms of improving your life. The difference between 50k 100k is huge, the difference between 100k and 300k is large but not as big as 50-100k. 300k - 1 million is smaller, 1 million - 10 million is even smaller.

  • @DeConstructingDreamz
    @DeConstructingDreamz 13 днів тому

    Lots of people can buy quickly with mediocre deals or bad deals. Slow down and find good/great deals. Analyze correctly and you won’t regret. Be like Mike!!!

  • @iammofo
    @iammofo 15 днів тому +1

    14:40 I agree… she is realistically only making around 37k per year that’s why she’s hurting… her financial forecasting skills are not on par.

  • @Everydaylandlord
    @Everydaylandlord 15 днів тому

    Let’s collaborate! Moved to Mobile AL from LA in 2022 and have portfolios in both states!

  • @NickM11561
    @NickM11561 14 днів тому +2

    Sounds like she doesn't understand the math on her own properties....

  • @Unknown-wc1hi
    @Unknown-wc1hi 14 днів тому

    how do you find 22 units?

  • @jldsystemsltd
    @jldsystemsltd 15 днів тому

    Great comments Mike!

  • @iammofo
    @iammofo 15 днів тому

    Investors need to realize the very first deal will set the pace for the next deal… if that first deal is properly cash flowing or maybe an even better approach for a first deal would be to house hack utilizing down payment assistance and putting down a significant down payment on a multi family unit…

  • @Iam.brittjai
    @Iam.brittjai 16 днів тому

    Can you sell a property and 1031 exchange on another property you already own?

  • @LinDoesInvesting
    @LinDoesInvesting 16 днів тому +1

    Awesome video!

  • @bdelight5422
    @bdelight5422 17 днів тому +1

    Thanks mike.. Miss you.. and your content for awhile. She should be introduced to Oraat and learn the right way to invest RE

  • @user-qb1xc1kl8o
    @user-qb1xc1kl8o 15 днів тому +1

    All these rental math is not that complicated. It is not like she is in investment banking in which she has to calculate the equity value vs. the enterprise value of a company. With that said, how can she not know how to calculate cashflow??? It just seems crazy that a bank is willing to lend her money when she doesn't even know the basics of the rental market.

  • @KenishaMillerREInv
    @KenishaMillerREInv 16 днів тому

    Thank you! 😮

  • @Naija4K
    @Naija4K 9 днів тому

    She did not max out on refinancing and or seek out other lines of credit that she could have utilized so they are low on cash and she cannot focus on property management….

  • @natureovermind7649
    @natureovermind7649 15 днів тому

    It's not about the fast growth. She was expecting profit really fast. Which alot of fake gurus make it out to be. It's a must you put aside a percentage for emergencies.

  • @tavarisjones551
    @tavarisjones551 16 днів тому

    I saw her video earlier. She did a very good job at describing where went wrong. They basically scaled too fast without enough cash reserves. If she bought 22 properties in 5yrs, the probably would be doing great...

  • @iammofo
    @iammofo 15 днів тому

    Right out of the beginning of the video … as the woman explained her situation … I automatically knew her budgeting skills are off… she scaled without running the numbers to afford to scale.

  • @abro484
    @abro484 17 днів тому +2

    How did she get 22 properties in 18 months? You can only refinance at the earliest at the 6 month intervals for most banks. How much money did she and her partner start with?

    • @zero2hero308
      @zero2hero308 16 днів тому +1

      Likely non traditional loans

    • @alexag7686
      @alexag7686 16 днів тому

      Probably hard money or private money

    • @kerrybaird739
      @kerrybaird739 14 днів тому

      Seller financing, conventional non-qm and DSCR mortgages is how we bought houses.

  • @Toolabuse
    @Toolabuse 15 днів тому +1

    I watched that video about a week ago. Lady should have done her homework before investing.

  • @yakuzaboss1988
    @yakuzaboss1988 15 днів тому

    Good take o. Her video

  • @LaddDentalGroup
    @LaddDentalGroup 15 днів тому

    Well done video!!

  • @julieludwig8927
    @julieludwig8927 16 днів тому

    Too many ppl jump into owning rentals & have ZERO idea how to make repairs themselves at 1/4th the cost of hiring a Contractor/Handyman, how to lease/manage rentals nor how to maintain Bookkeeping.

  • @theyoder3311
    @theyoder3311 17 днів тому +1

    Mike, the man, great breakdown, you odd to send her the ORAAT community information.

  • @christianex7260
    @christianex7260 15 днів тому

    You have to appreciate her transparency, but I agree she scaled to quickly.

  • @BeanzSF
    @BeanzSF 16 днів тому

    The video the woman made was among the most authentic I’ve seen. The Mike guy is approaching the video as if she’s claiming to be an expert. My advice would be for the woman to take the hit and hire a property manager and accept a W-2 job for a year or two. Simple. But her video is a great learning lesson of how a beginner might do things differently

    • @aao449
      @aao449 15 днів тому

      I agree with you. She didn’t have to share any of her experience with strangers online but we get to learn from her real life experience.

  • @kalebbillig3472
    @kalebbillig3472 16 днів тому

    In the story, they are not cashflowing 600 dollars per month per unit - more like 400 depending on how much she paid per unit… absolutely have to include upkeep, maintenance AND repairs (usually 1-2% of the total value of the unit annually but it may only need to be taped for big expenses once every 5-10 years or so)

    • @kalebbillig3472
      @kalebbillig3472 16 днів тому

      If she got her math problem wrong for maint upkeep and repairs, who knows what else she got wrong - they should also be paying themselves a static wage if she needs money, don’t buy that 22nd unit, maybe wait until next month or next year

  • @billoconnell6464
    @billoconnell6464 17 днів тому +1

    thanks

  • @ScottsFinancialThoughts
    @ScottsFinancialThoughts 16 днів тому

    I wonder at what point does this hurt the regular person when folks buy so many properties? How many people does it take to affect the market in such a way that you price people out of homes and contribute to the housing issue?

  • @Mrswaggerificul
    @Mrswaggerificul 16 днів тому +1

    I havent finsihed watching your vid yet, but i also commented on her vid saying cashing flowing 300$ on a rental is NOT a good deal, its wasting your time,

  • @rockieleftwing
    @rockieleftwing 16 днів тому

    She is ambitious indeed she didn't factor in a few important things. She needs to have to have a pro go over her financials. She is young she can start over.

  • @wanerouge2318
    @wanerouge2318 13 днів тому

    Well trial and error she learned she made a mistake and she's telling us I appreciate her content least she's not blaming nobody many investors made mistakes like that and they go on and be successful

  • @matbob7249
    @matbob7249 16 днів тому

    I can’t make any sense of her logics. This is 3rd graders first week on stock market impressions and results. Great catch Mike!

  • @MemoGrafix
    @MemoGrafix 8 днів тому

    She GOT GREEDY. HANDS DOWN. I only watched 1:00+ of her Video before I watched Yours, and I don't have a short-attention span. As soon as she got to the part of things BREAKING I already knew. I've seen it in My own experiences owning Real Estate & being a Tenant/My Parents - owning 8 properties/Family & Friends owning Real Estate.

  • @lanceneol865
    @lanceneol865 16 днів тому

    Personally, I plan on banking 100% of cash flow. Small time Investing takes time to become established. Any business in its infancy will take more than it gives in the beginning. Only investors with deep pockets can buy buy buy quickly. And even they run the numbers and have other investments in their portfolio.

  • @mannymorales8094
    @mannymorales8094 17 днів тому +2

    Sounds like she didn’t do her due diligence and blindly followed her partners lead

  • @PaoAFul
    @PaoAFul 16 днів тому

    Ppl need to have a cushion on $5K per unit just in case of emergencies. Remember if it was so easy EVERYONE would do it.
    I have 2 passive income streams and it had its ups and downs and downs. Rarely does everything go smoothly.

  • @mefree3306
    @mefree3306 15 днів тому +1

    Sell um?? 😂😂😂 You aint gettin no equity in those properties she bought hell u gone sell for and get nothing

  • @hollywoodhomes4373
    @hollywoodhomes4373 День тому

    I also feel like her buy box was way to big

  • @TL-wy1nk
    @TL-wy1nk 16 днів тому +1

    Best advice: Slow down. Take it easy! Rome was not built in a day.

  • @mefree3306
    @mefree3306 15 днів тому

    This dude really thinks in 3 years these crummy properties him and her bought outside of California and Florida are going to have equity and make a profit monthly with no money down 😂😂😂😂

  • @Crow-u2g
    @Crow-u2g 16 днів тому

    You must sell homes to make your living,and need to keep selling in the worse time in history to buy a home.She is absolutely correct.

  • @Jonathan_Welch
    @Jonathan_Welch 15 днів тому

    Hey brother, I couldn't help but notice the hat behind you. Does that say Gary Indiana? And it looks like you're also a brother in blue. Luv ya already.

  • @freedomworks3976
    @freedomworks3976 16 днів тому

    Business isn’t for everyone.
    The big mistake people make is they think if they just buy enough real estate they will be set and this is a bad idea. Here is a better idea , get good with money. If you’re good with money then money will not be a problem. Master Dave Ramsey FIRST then if you can do that with no trouble you can master Robert Kiyoski next then you can master Dion financial talk after that then you can try out Mike the millennial police man.

  • @laubachm11
    @laubachm11 16 днів тому +1

    Needed a liquid emergency fund is all she needed

  • @MikeyDavis
    @MikeyDavis 15 днів тому

    Long story short, if your expenses + hidden expenses are greater than your income, you’re wasting your time.

  • @jonathanblaze5717
    @jonathanblaze5717 16 днів тому +1

    That ismy crush, so leave her alone. She is learning. She will get it.

  • @kalebbillig3472
    @kalebbillig3472 16 днів тому +1

    I bet she doesn’t actually own any properties

  • @Greebs
    @Greebs 13 днів тому

    I’m going to react to this reaction about react to buying 22 rental units if you don’t mind

    • @MillennialMike
      @MillennialMike  13 днів тому

      @Greebs 😂😂 do it bro! And send me a DM on Instagram of the link to your video so I can watch it!

  • @PhoenixEncore
    @PhoenixEncore 14 днів тому

    I was suggested this video also... She was sounding so ridiculous AND I'm a noob at this. And that just listening to Dion, Mike, and Mat(the Three Amigos) and making plans.

  • @rob9571
    @rob9571 16 днів тому +1

    Mike's Alive!

  • @winniethepoohandeeyore2
    @winniethepoohandeeyore2 7 днів тому

    I regret paying off my mortgage said no one

  • @miadaydream4712
    @miadaydream4712 14 днів тому

    she literally said it was her fault and why lol

  • @stevencoyote746
    @stevencoyote746 15 днів тому

    5k a roof I'll jump all over that 😂 try 10k for 1500 sqft ...

  • @erice1736
    @erice1736 6 днів тому

    It just all feeds the Matrix

  • @Everydaylandlord
    @Everydaylandlord 15 днів тому

    I have 111 rental units been doing it for 15 years if you want to see what it’s really like give me a subscribe 👀👀👀

  • @winniethepoohandeeyore2
    @winniethepoohandeeyore2 7 днів тому

    Oh yes she did alot wrong.

  • @174mars
    @174mars 14 днів тому

    She need a mentor

  • @HighPowerOptionsTrades
    @HighPowerOptionsTrades 16 днів тому

    Please leave her a message directly for an invite how do you know she will see this vlog 💎💎💎💎💎💎

  • @ericmann1506
    @ericmann1506 16 днів тому

    She never heard of contingency money lol

  • @MrSethmo13
    @MrSethmo13 16 днів тому

    Mike, I think you got trolled. She put no money down, she acquired 22 rental properties, and she’s earning $154,000 a year in profit. She’s not
    genuinely complaining about her circumstances, rather, she’s trying to discourage competition from entering the landlording business so she can continue to buy houses without running up the prices. LOL.
    But seriously, some people can learn from instruction and other people have to learn from experience. Stefanie clearly did not do much investigative work before diving in to this business (or her partner did all of the investigative work and she just supplied a credit worthy name on a credit application without thoroughly understanding what she was jumping into). Some people learn beforehand while other people do their learning afterwards. It looks like Stefanie does her learning afterwards. As you pointed out, if she can weather the storm, five years from now she will be delighted that she jumped into this business.

  • @bow2augusto
    @bow2augusto 16 днів тому +1

    damn im so glad i dont touch real estate. the numbers are so lame considering the effort, stress and work. my brokerage account goes brrrr

  • @Dammmguddd023
    @Dammmguddd023 16 днів тому

    How does someone get in touch with you?

  • @ronaldstivers5921
    @ronaldstivers5921 9 днів тому

    Bought 4 sold 1 payed units down did this 5 times over 4 yrs now own 15 units clear in 7.5 yrs.

  • @ronaldstivers5921
    @ronaldstivers5921 9 днів тому

    Your advice is good but you don't have hard numbers.

    • @MillennialMike
      @MillennialMike  9 днів тому

      @@ronaldstivers5921 what would you like to see? I have multiple videos on my channel breaking down specific rental properties I own and breaking down all of the cash flow down to the dollar exposing all of the costs