242: Finance Follow-Ups: Short-Term Rentals, Safety Reserves, & More Cash Flow

BiggerPockets Money Podcast

BiggerPockets

Education, Investing, Business

4.5 • 3K Ratings

🗓️ 22 October 2021

⏱️ 68 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

A few weeks ago, Mindy was asked by a listener of BiggerPockets Money, “when are you going to do a Finance Friday follow-up?” Well, listener, your wish has come true! Today we talk to three past guests of the BiggerPockets Money Show, Sarah from episodes 6 and 178, Brian from episode 180, and Erik from episode 170. In Sarah’s most recent episode, she spoke about having large safety reserves and sinking funds for her new property. Since being on the show, she’s taken time to evaluate how safe she really needs to feel. She’s taken a risk and has started to invest in her first short-term rental, as well as being on the house hunt for her next house-hack property! Brian had the question we all want to have, “what do I do with all this money?” Since coming on the show, he’s expanded his rental property portfolio, purchasing an off-market five-unit in upstate New York, and a short-term rental in North Carolina. He’s currently looking into syndications to see if that would be another great avenue for his wealth accumulation. Lastly, Erik has returned to the show with more rental units and more cash flow! He’s been able to pay off his HELOC with a very lucrative refinance, allowing him to buy a new condo that is paying him $400/month after all expenses! He was even able to increase his salary thanks to his employer’s free education program! Make sure you stick around for his bonus tip towards the end of the episode! In This Episode We Cover Why being too conservative with your savings can become a financial detriment Making offers on properties that work for your numbers, even if it means rejection Why short-term rentals are very cash flow heavy investment Telling everyone you know that you’re investing in real estate (to get more deals!) Using a cash-out refinance to pay off old loans like equity lines and HELOCs Taking advantage of employee benefits like free college tuition And So Much More! Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Welcome to the Bigger Pog its Money Podcast, show number 242 Finance Friday edition,
0:06.0	where we check in with Sarah Wilson, Brian, and Eric and see what they've been up to since we
0:10.9	last spoke with them. I think it's really important to challenge your beliefs sometimes and not
0:15.8	necessarily just keep doing the things the way you've been doing them just because that's the way
0:21.1	you've always done them. And so Scott, saying like, hey, you've got 44 grand in cash. Maybe
0:28.1	don't was a bit of a wake up call and I did actually end up changing some of my saving habits.
0:36.0	So it's a four bedroom two bath house with a hot tub. It's beautiful. It came fully furnished.
0:41.8	So again, it had only been rented on short term rental for about a year. So it wasn't beat up
0:46.2	too bad, right? Or I had to go in and do anything. Really don't. A couple cosmetic things. But now
0:51.2	we've already booked. I've only been live with it for a little over two weeks on Airbnb. And it's
0:56.4	already booked up like $12,000 for the rest of the year. My wife and I got so excited after
1:03.8	our recording that we kind of went and tried to do everything we could as much as we could
1:12.2	to get ourselves in an even better financial situation.
1:15.7	Hello, hello, hello. My name is Mindy Jensen and I am flying solo today. Scott couldn't
1:20.6	join me today. So I am flying solo when I recap and catch up with Sarah Wilson, Eric and Brian.
1:30.0	I am here to make financial independence less scary, less just for somebody else to introduce you
1:35.8	to every money story because I firmly believe that financial freedom is attainable for everyone
1:41.2	no matter when or where you're starting. Whether you want to retire early and travel the world,
1:46.5	go on to make big time investments in assets like real estate or start your own business.
1:51.4	We'll help you reach your financial goals and get money out of the way so you can launch yourself
1:56.1	towards your dreams. A couple of weeks ago, somebody posted in our Facebook group, hey, Mindy's
2:06.6	always talking about catching up with somebody and checking back in in a few months. Well, I have
	...

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