S5E47: How to Create $7,000 a Month in Passive Income in 2 Years

The Mentee Podcast

We live in a world that glamorizes the grind and the hustle. But is it really fulfilling to spend the rest of your life just blindly paying off bills? Yes, you have to work hard. But you have to work smarter. It’s not impossible, and you’re never too young to achieve financial freedom.

Matthew Amabile, real estate investor and founder of Amabile Investments, joins me to talk about how to attain financial freedom. What are the secrets to reaching financial freedom in just two years?

Here are some power takeaways from today’s conversation:

• Increase your income while decreasing your expenses
• Follow the four-unit hack
• Build relationships with partners and investors
• Buy properties and refinance

Episode Highlights:

[04:31] Goal of Financial Freedom

The idea is to make a certain amount of money a month and keep your expenses low to do whatever you want. Matt earns $7,000 a month in passive income from rental properties. From this, he only spends around $3,000 a month.

[08:28] Four-Unit House Hack

Matt bought a condemned fourplex building and renovated it into a rental property. He went with an FHA 203k loan with renovation and acquisition costs factored in. It remains his best-performing property, with a value of $400,000 and a monthly gross rent of $4,800.

[17:06] The Real Estate Passive Income Formula

The main formula is to increase how much you’re saving. The two ways to do this are to increase your income or decrease your expenses.

[21:41] Partnership Structure

Find someone who doesn't need cash flow. The two of you will each bring 50% of the cash to close. In that way, you can bring twice as many properties while still getting 100% of the cash flow.

[26:21] Sourcing Deals

Matt is now transitioning over to building out a sales team. The 70% ARV rule works well for him, but he’s looking for deals where he could buy and refinance right away.

Notable Quotes:

[16:16] “I just had a number in mind. I was like 5000—I just need to create $5,000 somehow.”

[21:05] “There's two sides to real estate. There's literally only two. There's the deal and then there's the money; you find the deal, you can find the money.”

[32:58] “You don't have to work the next 40 years of your life. You can go create some income for yourself.”

Resources Mentioned:

Raising Private Capital by Matt Faircloth

Connect with Wyatt Graves: LinkedIn | Website

The Mentee Podcast: Website | Apple | Spotify

Connect with Matthew Amabile: Email | Facebook | Instagram

Money Club: Website | Instagram | Facebook | Twitter

GoBundance Membership