32 Yr Old Michael Albaum Grosses $431,000 A Year From His Real Estate Rentals As He Travels & Lives in His Van

Hello, people. Welcome to the REH Estate Youtube channel. Do you know Michael Albaum? This 32-year-old grosses $431,000 yearly from his real estate investments all the while traveling and living in a converted van.

According to Michael Albaum, when he tells people that real estate is a great investment, he often mentions the great potential there is. Getting started, however, is challenging, but it’s one of the most important steps you can take to succeed. If you want more Real Estate Heaven content, subscribe to the REH Estate Youtube channel and hit the notification bell.

For years, Albaum invested in real estate and had a modest goal of just making a bit more money than his engineering salary. To start, he focused on creating rental properties, just one or two at first.

Today, he has 61 rental units with last year’s gross income of $431,000 and is also a real estate coach at Roofstock Academy. He mostly works from a converted van and his wife and him live in it when they are not traveling across America in the converted van. The couple’s California home.

He and his wife travel cross-country between working on projects.

He makes his living on streams of income, including by living and traveling across the U.S.

With a real estate portfolio, he earns $6,000 per month in passive income. In addition to this passive income, he pays mortgages and property taxes.

He has been investing 2019 money into a redevelopment project, which is converting eight units into 17, and living off my full-time coaching salary.

In his first year out of college, he earned about three times the median income.

Saving for a property was one of his personal goals and he was able to live in tight financial situations. He was paying $800 per month to rent with roommates but his employer covered the costs of his car and phone. This allowed him to save even more each month.

In 2014, he used his own cash and the stock money he had saved up to make what was then his first real estate purchase: a $295,000 single-family home in Southern California. He also took out a loan from a family member for the remaining cost, so he did not have to go into debt with the bank.

His home had been gone for two months before he started renting it out, and there were no major renovations needed to make the place habitable. The monthly rent from his tenants pays for monthly loan payments on the house plus the operational expenses of managing this property.

By 2016, he was the owner of three houses. With a traditional bank loan, he financed my second purchase while buying his third with a family loan at 4%.

He made $51,404 in gross rental income while he spent approximately $1,800 per month on mortgage, maintenance and property management.

Working in real estate, he had accrued a bit of savings. For him to purchase additional properties, he tried finding an affordable property and invested his savings as well as the profits that came from my investments into stocks.

When he learned how much extra value he could get from investing in a market where money was flowing and prices were inexpensive, he started looking for property in other areas. Because the houses were cheap, he bought a number of them and fixed them up to rent.

Data-driven market research would display where the best commercial properties were in their markets, while establishing professional relationships with agents and property management specialists helped him identify potential tenants.

He works with small family-owned management businesses that cost an average of 7% of his gross rent per property, but can reach up to 20%.

He said that he is thankful that he gets to work a normal nine-to-five job while still being able to explore new parts of the country, thanks to his investments. He earns passive income through more traditional means like real estate.

Albaum works a 9-to-5 as an investment coach, and is currently managing a redevelopment project.

Saving up enough money, and being strategic about your investments can help in an era of sky-high home prices. Investing in real estate is a good option if you want to own a piece of property during this time.

Use the “BRRRR” method: Buy, rehab, rent, refinance, repeat.

His residential real estate strategy is to buy homes that are currently renting for much more than the monthly mortgage payment and fix them up, then rent them out. This keeps him in the black while he owns property that’s managed by him as an investmeent.

To get the best strategy for you, do the basics by researching podcasts and courses. There are many resources available to find out what will be the most beneficial to your business.

You can also learn from other investors on forums like BiggerPockets, where the BRRRR Method was popularized.

Real estate is a great investment vehicle and can have a high ROI, but people need to compare the potential fruits in other investments with that of real estate. It’s not always the best choice.

Pick a personal number as your goal and don’t compare yourself to anyone else.

He buys a property when it feels easy and he knows that the property is not too difficult to manage.

Using his real estate portfolio allows him to simplify my life and make passive income for the majority of the time he owns it. It does not mean lower profit margins up front, though. By doing the work once, he is able to reap more benefits than if he was to hire a team continually to upkeep his properties.

One way to become independently wealthy is to focus on generating as much passive income as possible, including future expenses. His real estate portfolio’s primary goal is to be 100% financially independent by covering his monthly living costs without working.

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