Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

I Ran Out Of Money!

2 Mar 2023 · 0 min

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0:19

In this informal discussion, Speaker B shares his personal journey into real‑estate investing. Starting with a high‑income, six‑figure job at CoStar, he used his earnings to purchase a primary home, then a duplex, and later a second duplex which he renovated. Rental income from these properties covered the mortgage on the duplexes, creating cash‑flowing assets. Over eight years he accumulated two cash‑flowing duplexes and a house, but ultimately spent all his capital expanding the portfolio and found himself without cash to continue scaling. His broader ambition was to retire his wife from her teaching position, a goal now threatened by the lack of remaining funds. Speaker A interjects, noting the role of an appreciating condo in the early financing. The conversation highlights the challenges of scaling a real‑estate portfolio when cash reserves run dry, despite having income‑producing assets.

Now I've shared a few times on this channel, but I actually had a high-income job when I first started investing. It wasn't huge, but I mean, I was working for CoStar, multiple six-figure jobs. So I mean, I had income. Well, how do you know how to start with no money? Turns out if you buy a bunch of real estate, you can in fact spend all the money, which is what I did. I bought a house for my wife and I, I bought a duplex, and then I bought a second duplex, and then I fixed up that duplex.
You didn't even get all the money from your job. I mean, you got some of it from an appreciating condo.
Yeah, that's true. I also had my, uh, the first place I ever lived actually made money, and So, I started with a little bit but I spent it all in my final portfolio when I was absolutely out of money. And you spent 8 years getting that money. I spent 8 years getting the money and it got me to 2 excellently cash-flowing duplexes and 1 house. It actually mapped out to almost exactly the 2 duplexes covered my mortgage. Really cool place to get with money. However, I had bigger goals. I wanted to retire my wife from her teaching job because her school got super weird and she was like, I'm done doing this. Well, how do I do that if I have no more money to scale?