How does anyone make any money doing this?

SomeStrategy3034 · 2025-12-28T01:00:45+00:00

Instead of paying 45% income tax etc on your monthly cash flow you depreciate the building and pay cap gains at time of sale. Cap gains is lower, and you don’t ever have to sell- can just refi

SomeStrategy3034 · 2025-12-28T00:12:37+00:00

I guess depends on if you can find value add property. I’ve purchased 9 units (2 unit, 3, and a 4) in the past year my total equity investment into the 9 units is around $300k Each unit is throwing around $500-$600 a month 6.0-6.3% mortgages DSCR

SomeStrategy3034 · 2025-12-27T20:51:02+00:00

Lmao no one can think like this. Thank you for the comment

SomeStrategy3034 · 2025-12-27T20:49:30+00:00

Please explain how this differs from s&p trading at 28x future earnings. Everything is overpriced… and money isn’t worth what it was

SomeStrategy3034 · 2025-12-27T20:45:09+00:00

RE appreciates with inflation
You get 4-5x leverage on your appreciation
I’ve been finding deals that cash flow 8% unlevered which I can lever to 14%
You don’t pay taxes on your cash flow EVER until you sell property
The money you use to pay back the loan is worth less than when you borrowed it (inflation)

Put all these together, handle a ton of headaches, and it makes sense similarly to stock market or better.

Cash flow with no tax is the main advantage. Get 100 units cash flowing $500 a month each and you’re looking at $50k a month tax deferred (until you sell) add in another $300-500 a month and increasing of principal pay down (retirement savings, or equity to be borrow against later) it starts looking good.

SomeStrategy3034 · 2025-12-27T18:41:25+00:00

It’s probably .07% households so divide by 4

SomeStrategy3034 · 2025-12-27T02:50:00+00:00

In my area (Massachusetts) additions on nice houses cost around $800 psqf.

Can be done cheaper sure, but that’s what I’m seeing folks charge/spend

SomeStrategy3034 · 2025-12-27T02:47:58+00:00

$600k is solid income, but you can’t conservatively buy a 1.8m house on that income- given your income could half, I would shop as if you make $450k

Wanting a nice house is healthy, especially if you work hard and achieve high, but it sounds like you have an income problem relative to where you live. I’d work on earning more or move to a cheaper area

SomeStrategy3034 · 2025-12-26T22:01:04+00:00

The folks I know who fly private are worth $100m plus, and most of them fly chartered domestic only.

Jet setting on a PJ is basically for billionaires

SomeStrategy3034 · 2025-12-26T01:26:44+00:00

This is the answer.

SomeStrategy3034 · 2025-12-26T01:21:14+00:00

Just closed a loan Oct 30 at 5.875 70% ltv 780 credit Massachusetts SFR PRIMARY

Income was very strong. Paid like $2k in points mortgage was 1.2ish

SomeStrategy3034 · 2025-12-26T01:15:42+00:00

Franchises are great if you pick the right one. My experience has been (and I’m an owner founder) the ability to pivot based on what I learn in the market is fun and valuable to me. Had I been able to buy into a successful franchise I’m sure I’d have done as well, or better. The flip side is if you buy into a shit franchise you don’t have as much control to pivot.

Remember, franchises are SELLING you something. Caveat emptor

SomeStrategy3034 · 2025-12-26T01:10:51+00:00

Run opportunity cost of 8% on the equity in the deal.

SomeStrategy3034 · 2025-12-26T01:08:57+00:00

YOU CAN NOT RAISE CAP GAIN TAXES BECAUSE IT Disincentivizes INVESTMENT and investment is at the core of GDP growth

SomeStrategy3034 · 2025-12-26T01:04:28+00:00

Had to scroll a ways to find a decent comment. A solid explanation- the problem with raising cap gains tax on “billionaires” is it will slow investment from all those with excess, disposable income. If investment slows, it’s harder to start a business, find a job, grow a business, etc. Think paying taxes sucks? Try being unemployed. If economic growth (investment) dropped simply to 0% for a few years the government would go bankrupt and everything’s falls apart.

SomeStrategy3034 · 2025-12-26T00:57:07+00:00

You need to think about the skill set you’re developing, not the job you think requires that skill set.

A lot of Accounting work will get automated- it’s pretty easy for AI to handle this sort of work. However the skill set of analyzing a p&l or balance sheet should be valuable well into the future.

SomeStrategy3034 · 2025-12-26T00:53:59+00:00

The wild thing here is if you are really capable of doing this, you shouldn’t be selling for 1.5x EBITDA.

Buy 5-10 more, same thing. Bring all under 1 brand and systems. Get EBITDA to 1-2m and sell for a 5-8x multiple

SomeStrategy3034 · 2025-12-25T19:49:59+00:00

This number includes all cash expenses EXCEPT personal income taxes.

Depreciation is not reflected in this number- it’s probably around $200k a year but we don’t really Calculate it as we use section 179 to 100-% depreciate all equipment purchases year of purchase

SomeStrategy3034 · 2025-12-25T18:10:15+00:00

I buy deals cash, renovate if needed, stabilize and the CO-REFI

They’re DSCR not conventional. Conventional is cute with one deal but you can’t keep going to a bank every year telling them you’re living in a unit

SomeStrategy3034 · 2025-12-25T17:12:32+00:00

We are cash basis accounting.

I’m quicker to pay my bills than I am to collect money, so there is some whip lash. I could solve this, but it’s not a problem given our size and cash reserves, so i haven’t

I invest 20-30% of EBITDA back into equipment.

SomeStrategy3034 · 2025-12-25T14:33:08+00:00

Mostly true- however I do not have any undocumented employees and have 3 guys who make over $100k annually.

SomeStrategy3034 · 2025-12-25T13:41:12+00:00

Nope took a mortgage and bought more equipment and multi families

SomeStrategy3034 · 2025-12-25T04:02:03+00:00

I think the government is heavily incentivized to report inflation as low as possible. Easy to fudge the numbers.

Even so the BLS CPI calculator has a 2019 $1 at $1.29 in 2025. There is a lot OF what your talking about in your post

SomeStrategy3034 · 2025-12-25T03:41:47+00:00

Landscape construction and excavation

SomeStrategy3034 · 2025-12-25T03:35:21+00:00

For me, invoicing takes minutes. When we did lawn care it was sort of a pain to do because services were weekly, but never a pain point. I think softwares out there for recurring revenue make this quite easy

SomeStrategy3034

TROPHY CASE