I Bought My First Rental in 2021, Now I Have 19 and Replaced My Salary!

Summary

BiggerPockets Real Estate Podcast Summary

Episode Title: I Bought My First Rental in 2021, Now I Have 19 and Replaced My Salary!
Host: Henry Washington
Guest: Lamontis Gardner
Release Date: April 14, 2025

---

Introduction

In this inspiring episode of the BiggerPockets Real Estate Podcast, host Henry Washington sits down with Lamontis Gardner, a former college football player turned successful real estate investor. Lamontis shares his journey from purchasing his first rental property in 2021 to expanding his portfolio to 19 units by the end of 2024, alongside flipping five houses in a single year. Balancing his real estate ventures with a full-time job as a teacher and coach, Lamontis provides valuable insights into sustainable growth, strategic financing, and maintaining work-life balance in the competitive Mobile, Alabama real estate market.

---

Lamontis Gardner’s Journey into Real Estate

Transition from Coaching to Investing

Lamontis Gardner began his career as a college football coach. However, the COVID-19 pandemic in 2020 disrupted his career, leading to the cancellation of the football season and the eventual shutdown of the school where he worked. Facing a sudden loss of income and ample free time, Lamontis sought a more stable and independent financial future.

[01:19] Lamontis Gardner:
"I was under control of my job and I no longer wanted that, so just wanted a different lifestyle."

Inspired by Robert Kiyosaki's Rich Dad, Poor Dad, Lamontis immersed himself in real estate knowledge through podcasts, books, and BiggerPockets webinars, setting the foundation for his investment journey.

---

Securing the First Deal

Initial Challenges and Strategic Hustling

In 2021, Lamontis purchased his first rental property in Mobile, Alabama. After losing out on a duplex to a cash buyer, he adopted a proactive approach by mapping out property owners and making numerous cold calls to secure a deal.

[03:10] Lamontis Gardner:
"I pulled up a map and I wrote down every address on that street and I skip traced every owner and called..."

Making 25 to 30 calls, Lamontis successfully partnered with his former college football coach to purchase three duplexes for $380,000, requiring a 20% down payment. Although Lamontis had only $28,000 of the required $76,000, he forged a partnership that allowed the deal to proceed.

[05:25] Lamontis Gardner:
"We all went in three ways and took that deal down."

This initial investment proved fruitful as the property appreciated from $380,000 to $470,000 within a year, enabling Lamontis to refinance and withdraw his initial investment—a strategy often referred to as a "BRRRR" (Buy, Rehab, Rent, Refinance, Repeat).

---

Scaling the Business through Strategic Marketing

Embracing Direct Mail and Lead Generation

By 2023, Lamontis began focusing on marketing and lead generation to produce his own deals rather than relying solely on MLS listings. He delved into direct mail campaigns, which significantly increased his lead flow and deal acquisition.

[14:34] Lamontis Gardner:
"I started to produce my own leads and my own deals versus waiting on something to hit the MLS..."

Securing Financing with Hard Money Lenders

To further accelerate his portfolio growth, Lamontis connected with a local hard money lender through networking. By presenting a solid track record and demonstrating his expertise, he secured 100% financing on his deals, provided they remained under a 70% loan-to-value (LTV) ratio based on the after-repair value (ARV).

[16:03] Lamontis Gardner:
"I typically try to stay under 70% loan to value."

This financing strategy allowed Lamontis to undertake more deals without significant upfront capital, propelling his investment activities to new heights.

---

Portfolio Growth and Flipping Successes

Diverse Investment Strategies

Throughout the last year, Lamontis successfully executed 12 deals, comprising both rentals and flips. Initially focused on buy-and-hold strategies, he shifted towards more flipping to generate immediate cash flow, recognizing that relying solely on rental income could be precarious due to potential unexpected expenses.

[19:14] Lamontis Gardner:
"I kept more than I sold. I mainly tried to buy and hold, but I started realizing fast that I couldn't live off of that cash flow."

Highlighting Exceptional Flips

One standout flip involved purchasing a property for $55,000, investing an additional $75,000 in renovations, and selling it for $230,000. This deal yielded an impressive $80,000 in net profit, showcasing Lamontis's ability to identify undervalued properties and maximize their resale value.

[21:14] Lamontis Gardner:
"I purchased it at 55,000, put about 75,000 in there, and I sold that for $230,000."

His strategic approach to flipping, combined with effective marketing and financing, resulted in significant profits and portfolio growth.

---

Decision-Making: To Flip or Hold as Rental

Evaluating Property Potential

Lamontis employs a meticulous decision-making process to determine whether to flip a property or retain it as a rental. Factors influencing his choice include the property's layout, neighborhood quality, and the potential spread (profit margin) from flipping.

[27:40] Lamontis Gardner:
"If it has like an iffy layout or the neighborhood is iffy, I would just keep that. But if it's a slam dunk and the layout is good, I probably would flip it."

Focus on Revitalization and Quality Tenants

Lamontis emphasizes revitalizing properties with quality renovations, especially for Section 8 rentals. By enhancing the living conditions, he attracts responsible tenants, reduces turnover, and minimizes future maintenance issues.

[29:21] Lamontis Gardner:
"I like the direct mail because it doesn't take a lot of time, and I just bring the leads to me, and majority of the people that call me actually want to sell their home."

---

Building a Sustainable Team and Business Model

Leveraging a Reliable Construction Crew

A cornerstone of Lamontis's success is his dependable construction team. By maintaining strong relationships with his contractors, he ensures timely and quality renovations, allowing him to scale his business efficiently without the constant need to scout for new contractors.

[35:46] Lamontis Gardner:
"Having those [contractors] and not having to search for contractors from deal to deal, they've been really good."

Utilizing a Virtual Assistant (VA)

To manage the increasing volume of deals and administrative tasks, Lamontis hired a virtual assistant. This addition has streamlined his operations, enabling him to focus more on strategic growth and less on day-to-day management.

[33:25] Lamontis Gardner:
"I hired a VA, so that's been helpful for me tremendously."

---

Future Plans and Motivations

Aiming for Continued Growth with Purpose

Lamontis plans to scale his business to handle around 20 deals per year, balancing both rentals and flips. His motivation stems from a desire to provide a quality lifestyle for his family and to offer excellent housing solutions that uplift his tenants.

[32:28] Lamontis Gardner:
"I'm just trying to keep it around, like, 20 deals a year... providing quality place to live for the tenants and also my family."

Transitioning Away from Full-Time Employment

With his rental income surpassing his combined household income, Lamontis anticipates transitioning away from his full-time teaching and coaching role after the current school year, allowing him to dedicate more time to his real estate ventures.

[34:31] Lamontis Gardner:
"I think I've gotten to the point where my cash flow from my rentals has exceeded my two month-to-month income."

---

Conclusion

Lamontis Gardner’s story is a testament to the power of perseverance, strategic planning, and ethical investing in real estate. From humble beginnings as a single investor to managing a substantial portfolio while maintaining a full-time job, Lamontis exemplifies how dedication and smart strategies can lead to financial freedom and personal fulfillment. His approach—emphasizing quality renovations, responsible tenant selection, and sustainable growth—offers valuable lessons for both novice and seasoned investors aiming to achieve similar success in the real estate market.

---

Notable Quotes:

• Lamontis Gardner [01:19]:
  "I was under control of my job and I no longer wanted that, so just wanted a different lifestyle."

• Henry Washington [04:36]:
  "That's really not that many before you actually land a deal. That's pretty cool."

• Lamontis Gardner [14:34]:
  "I started to produce my own leads and my own deals versus waiting on something to hit the MLS..."

• Henry Washington [27:40]:
  "Properties that have unusual layouts, they're harder to sell... sometimes it makes more sense for you to keep them."

• Lamontis Gardner [34:31]:
  "I think I've gotten to the point where my cash flow from my rentals has exceeded my two month-to-month income."

---

Key Takeaways:

1. Proactive Deal Sourcing: Lamontis emphasizes the importance of actively seeking out deals through methods like skip tracing and direct mail rather than passively waiting for listings.

2. Strategic Financing: Building relationships with lenders who understand and trust your investment strategy can significantly amplify your investment capacity.

3. Balanced Investment Strategies: Combining buy-and-hold rentals with strategic flipping can create both long-term wealth and immediate cash flow.

4. Quality Renovations: Investing in meaningful property improvements attracts better tenants, reduces turnover, and enhances property value.

5. Sustainable Growth: Scaling a real estate business thoughtfully by building a reliable team and maintaining manageable deal volumes ensures long-term success without overwhelming challenges.

---

Lamontis Gardner's journey serves as an inspiring blueprint for aspiring real estate investors aiming to achieve financial independence and create a lasting impact through ethical and strategic property investments.

Transcript

[Henry Washington]

This investor bought his first property just a few years ago in 2021, working with two partners to find the cash he needed. But by the end of 2024, he'd accumulated a portfolio of cash flowing rental properties in Mobile, Alabama, and he had flipped five houses in a single year. On the show today, we'll hear just how he did it. What's going on, everybody? Welcome back to the Bigger Pockets podcast where we teach you how to achieve financial freedom through real estate investing. I am Henry Washington. Filling in for Dave Meyer. Today's guest in the show is Lamontis Gardner. He's a former college football player who started his investing career by buying a single rental property in his first year. Over the next two years, he bought four more rentals and flipped a house. By 2024, he was able to do 14 deals, including five flips. We're going to hear from Lamontis on how he's been able to scale up his business sustainably and without taking on too much risk. How he found and financed deals in the Mobile, Alabama market and and what motivates him to continue growing his real estate business while working a full time W2 as a teacher and coach. It's a great story I'm sure you'll be able to learn from. So here's me speaking with Lamontis Gardner. Lamontis, welcome to the show, my man.

[Lamontis Gardner]

Thank you. I'm grateful to be here.

[Henry Washington]

Awesome, man. So give us a little bit of background. What were you doing before you got into real estate?

[Lamontis Gardner]

I was coaching, actually. Right after I finished playing ball in college, I went straight into coaching. Did that up until about 2020. The COVID shutdown season got canceled and eventually the school shut down. So with a lack of income and a lot of time on my hands, I just decided to journey into real estate. You know, I just dove into every podcast I could, every book I could get my hands on, and even the Bigger Pockets webinars that were. That were weekly.

[Henry Washington]

Okay, so 2020 hit. Your income just stopped because the school shut down. And that kind of made you realize, like you need something that you could depend on versus just depending on somebody else for your income.

[Lamontis Gardner]

Yeah, I just realized I was under control of my job and I no longer wanted that, so just wanted a different lifestyle.

[Henry Washington]

I think a lot of people face that challenge in 2020. They realized that they really weren't in control. But not a lot of people just decided to jump into real estate. So why did real estate become the thing? I mean, a lot of people were like selling Stuff online. They moved to investing in the stock market because it was all pretty easy to do from home. Why real estate?

[Lamontis Gardner]

So prior to then, maybe about two years earlier, I read rich dad, poor dad.

[Henry Washington]

There it is.

[Lamontis Gardner]

You know, that sparked that light in me to eventually want to get into it. And 2020 was just the perfect time.

[Henry Washington]

Okay, so you kind of had the seed planted from when you read rich dad, poor dad, and you were like, all right, this is the time. So when did you buy your first deal?

[Lamontis Gardner]

I bought my first deal in 2021. I decided I wanted to invest in.

[Henry Washington]

My hometown, which is where?

[Lamontis Gardner]

Mobile, Alabama. Okay. So we eventually moved from Atlanta and came back home where I took a local job here at a high school where I still currently working, which provided me a more stable income to be able to invest.

[Henry Washington]

Okay, well, let's talk about that. What was your first deal? How'd you find it? How did you end up financing it?

[Lamontis Gardner]

Prior to my first deal, I made an offer on a duplex. I lost out on that duplex due to a cash buying investor. So at that point it's kind of like, well, I'm not going to be able to compete. So what I did was this particular street is full of duplexes. So I pulled up a map and I wrote down every address on that street and I skip traced every owner and called and I ran into a guy who actually had three. He had three duplexes on this street in particular and took that down. I couldn't do it by myself, so I had to bring in a partner. But we used a local bank, had to put 20% down and, you know, been going ever since.

[Henry Washington]

Man, that's. I mean, that's cool. That's just straight hustling, like a straight hustle lead. So you looked up every owner, skip traced them, and then started making phone calls. How many phone calls did you make before you found this owner?

[Lamontis Gardner]

Probably would be about 25 to 30 calls.

[Henry Washington]

I mean, that's really not that many before you actually land a deal. That's pretty cool. But. But I like that. I like that style and that hustle because I think a lot of investors want to get into this business, but they don't really want to put in the work. They want to just find a deal online. And you went and you just made the calls until you found one. Now, I'm not saying everybody's going to make 30 calls and get a deal, but you don't know that until you put in the work. So you got on the phone with the seller he wanted to sell three duplexes. And you realized you didn't have enough money, so the bank said you needed to put 20% down. About how much money was that 20% that you had to put down?

[Lamontis Gardner]

It was about 76,000.

[Henry Washington]

Okay, so the total purchase price was how much?

[Lamontis Gardner]

It was 380,000.

[Henry Washington]

380 for three duplexes? How much of that 76,000 did you actually have?

[Lamontis Gardner]

I had about, like 28,000.

[Henry Washington]

Okay, so you had a little less than half. Right. So you had to raise the rest, and you decided to do that through a partnership. How did you find that partner?

[Lamontis Gardner]

He was actually my college football coach, my position coach. So prior to bringing him on, I was trying to talk to the owners like, hey, could you just allow me to buy one duplex, you know, or maybe two? And he was like, no, you got to take all three. Or, you know, I have to, you know, sell to someone else. So I was talking to my coach one day, and I. And I ran a deal by him, and he was like, hey, does he still have it? I'm like, sure. And, you know, we worked out a deal from there.

[Henry Washington]

Okay, did you guys. 50. 50 partner, since he was putting down more money or how. How'd you structure that?

[Lamontis Gardner]

Well, we actually split it three ways with someone that he's close to. We all went in three ways and took that deal down.

[Henry Washington]

So essentially you all kind of got a property out of it.

[Lamontis Gardner]

Yeah, essentially. And the good thing about that deal was, you know, we bought it for 380 and it appraised for 470.

[Henry Washington]

Oh, nice. And did you have to renovate these properties or were they all rent ready in good shape?

[Lamontis Gardner]

No, they were all rent ready in good shape and cash flowing.

[Henry Washington]

Oh, man, that sounds like a great deal. So hustled and found your first deal. And what I like about this deal story is a lot of people would have stopped. They would have quit. Right. They would have said, I can't afford three properties. I can only afford one. Or they would have said, I can't afford to do this deal. But instead of you saying that, you said, how can I go get this deal done? And you were able to find a partner who then brought in another partner. Partner, and you split the deal three ways. So I like that hustle because I think a lot of people talk themselves out of wealth. I think people oftentimes will just decide that they can't do something given whatever circumstances are directly in front of them. But with real estate, what's so powerful is there's a whole lot of ways to get a deal done and you have to remain open minded and you have to keep trying to structure something that makes sense. And I'm not saying everybody should just take on random partners, but I am saying that there are ways to take deals down and you have to have a mindset of how can I get this done versus I can't get this done. Which is one of the principles in rich dad for dad.

[Lamontis Gardner]

Right. And that deal got even better. So that next year we got them reappraised and they appraised for 525. And at that time I refi'd it and I was able to pull the down payment back out, which set me up to continue to invest.

[Henry Washington]

Oh, you did a whole burr on that property.

[Lamontis Gardner]

Yep. It wasn't planned, but that's how it happened. And that's been a foundation to my investment journey for sure.

[Henry Washington]

That's amazing, man. So now that you had that experience buying that long term rental, what did you do next? How did that deal help you transition into doing more deals?

[Lamontis Gardner]

So that was in 2021. My next deal was in January of 22. Um, so I guess I took some time off, but I did a flip in January of 22. I partnered on that as well with a local partner here. We bought a for 138 and we put about 70ish in there and we sold that for 290. I think we netted about 70k if I'm not mistaken. So we split it two ways by 35 apiece.

[Henry Washington]

I mean that's a fantastic flip in terms of numbers. How did you find that deal? Because you said you took some time off. So it's not like you had just deals, deals cooking.

[Lamontis Gardner]

Right. And at the time I was still trying to search on the market, you know, for everything. I wasn't as experienced. But this house in particular was sitting on the market for months. But the thing about it was it was listed as a 2:1, but it was 1700 square feet.

[Henry Washington]

I love this.

[Lamontis Gardner]

Yes. Right. And so I kept hearing about, you know, these type of deals and I'm like, hey, well you know, let's go see it. Went to see it. And it was basically a three bedroom and all you had to do was add a closet to make it the third bedroom. And we added a bathroom in one of the bedrooms. It was a crawl space home. So it was pretty easy to do. And we basically we had a 3:2.

[Henry Washington]

Which obviously increased the ARV of the property which allowed you to to make more profit, man. This is one of my favorite strategies for finding opportunities to make money. This is something like you guys can be doing. People can be doing this right now. You can look on the market, this exact strategy. Look on the market for properties that have been sitting for longer than the average days on market in your market. So if the average days on market is 30 days, look for things that have been sitting longer than 30. But what you really want to look for is houses that the square footage number is bigger than the bedroom and bathroom count would suggest. So if you have a 2:1, that's 1800, 1500, 2000 square feet, you know, there's space in there where you can add a bedroom and a bathroom fairly inexpensively, Especially just like you said, if that house is on a crawl space. Because the cost to add a plumbing in a bathroom on a crawl space house is significantly less expensive than having to add plumbing to a house that's on a concrete foundation. Because now you don't have to tear up concrete and floors. Right? And so, like, you can literally put this criteria into the MLS or into Zillow or into Redfin, and you could have a list of potential opportunities and why you want to do it for houses that are on the market longer than the average days on market is because those sellers might be motivated to take a lower offer. And so if you can find a property that's been sitting for 30, 60, 90 days, 120 days that has you look for a 3:2 with 2000 plus square feet, a 2:1 with 1500 plus square feet, that lets you know that there's potential value that you can add there. And then go look at those properties and make offers. You could potentially find yourself a deal where you know you can add value. I love that strategy, man.

[Lamontis Gardner]

Right, right. I still have that search criteria set, and to this day, I got it set at two bedrooms that are more than 1200 square feet. So anytime I see, you know, a house that fits that criteria, you know, it's something that I definitely check out.

[Henry Washington]

All right, we have to take a quick break, but when we come back, we'll talk to Lamontis about how he started to accelerate his portfolio growth. We'll be back.

[Unknown]

Peak rental season is around the corner. Are you prepared for success? Avail is the go to solution for do it yourself. Landlords sign up for free to list your property on top sites, screen tenants, and collect rent at no cost to you for just $9 per month per unit. Upgrade to the premium plan for customizable applications. And leases, waived rent collection fees and priority support. Plus access rent analysis reports to set the right price and promote listings for added exposure on partner sites. Sign up for free today at Avail Co. That's a V A I L co to get started for free, let's talk about a real Estate backed investment with major tax Advantages Car washes PBR's Opportunity Fund offers accredited investors access to a high margin, recession resistant industry with passive income tax efficiency and significant upside potential with operations in prime locations using best in class technology. Managed via a vertically integrated team, this fund is designed to deliver strong, stable returns backed by over $1 billion in assets under management. PPR has provided passive returns to thousands of investors since 2007. Don't miss out. Learn more [e-mail] PPRCAR that's biggerpockets.com PPRCAR your home isn't just a place to live, it's your biggest investment. You spend time, money and effort making it valuable, comfortable and safe. Maybe you've upgraded the shower head, added some new curtain and finally figured out which light switch actually controls the porch light. But the best upgrade you can make is peace of mind knowing your home is protected day and night. That's why I use SimpliSafe. Unlike traditional security systems that only react after a break in Simplisafe helps prevent them before they happen. Their Active Guard Outdoor Protection uses AI powered cameras and live monitoring agents who can actually see if someone's lurking, talk to them, activate spotlights and they can even call the police if needed. It's proactive security that works in real time. And the best part is there's no long term contracts, there's no hidden fees, just award winning home security for about a dollar a day. And it's why over 4 million homeowners trust SimpliSafe to protect their property and keep their home secure. Right now you can actually get 50% off a new SimpliSafe system with professional monitoring and your first month [e-mail] pockets that's simplisafe.com pockets. There's no safe like SimpliSafe. It's a fresh start to the year. Are your investments working as hard as you are? Here at BiggerPockets, we've partnered with Baam Capital to bring you an effective way to invest. Baam Capital specializes in tax advantaged multifam real estate investments designed to help you plan smarter for both your finances and your future. By planning for the year ahead and leveraging the benefits available, you can kickstart your financial growth while maximizing deductions. Grow your wealth and manage your taxes more efficiently this year. Discover your options with BAM Capital today. That's B A M capital.com biggerpockets real estate investing is a great way to build wealth, but let's be honest, Magic rentals can make your investment feel like a full time job. But what if you could continue to earn passive income powered by real estate without any stress? That's where short notes come in. Short notes allow you to invest in real estate development and earn 7 and a half to 9% annualized interest, all without managing properties or worrying about tenants. Choose from flexible terms as short as six months. Enjoy monthly interest payments and put your money to work on your terms. Go to connectinvest.com bp and get started investing today.

[Henry Washington]

All right, we're back with Lamontis. All right, so you did your first buy and hold deal. You did your first flip. So how did you start to shape or accelerate your business from that point?

[Lamontis Gardner]

During that 2023 year, I just started to study marketing and direct mail and I started to incorporate that into my business. And that's when I kind of took off. You know, I was able to produce my own leads and my own deals versus waiting on something to hit the MLS and competing with everyone, you know, on that. So this kind of took off from there.

[Henry Washington]

Okay, cool. So I think a lot of people find themselves in this boat where you do a deal or two and then you realize you get the bug, right? You realize you want to increase that volume and in order to do that, you need some sort of systems, processes and procedures. And what you're saying is you chose the route of focusing on lead generation that you can control, and the more leads you can generate, the more deals you can do. But typically to do deals, you need leads and you need money. So how did you find the money to buy the deals that you were finding financially?

[Lamontis Gardner]

Personally, I tried to set myself up because, you know, I was working my W2 the whole time. So I was saving up money and I met a local hard money lender. He would lend to me at 100% of the renovation and purchase price. So that significantly took my investing to another level. Just because I was able to take down deals without putting any money down.

[Henry Washington]

Yeah, I mean, obviously finding a lender that'll lend to you at 100% is great. I assume it's like 100% as long as your LTV is at a certain point, right? For sure.

[Lamontis Gardner]

Yeah. So I typically try to stay under 70% loan to value.

[Henry Washington]

Okay. Of that after repair value, in other words, what Lamontis is saying is that as long as he is all in at 70% of the after repair value, meaning if you're buying a property, for ease of numbers sake, if you're buying a property in the ARV is a hundred thousand dollars, his lender was willing to loan him up to $70,000. So Lamontis would then know, as long as I'm buying that property and the money I need to renovate it falls at 70 grand or less, and he wouldn't have to bring any money. So if he was buying a property for 50 and he needed 20 to renovate it, he's all in at 70. Therefore, he can get 100% financing. If you were going to buy a property for 50 and you needed 30, you'd be all in at 80. That would probably mean you need to bring 10 grand to closing, correct?

[Lamontis Gardner]

Correct.

[Henry Washington]

Awesome. So finding a lender like that is amazing. And a lot of people are going to say that's cool for you, but how did you, you know, how did you find that lender?

[Lamontis Gardner]

Through a buddy that I have here that is a local investor as well. He introduced me to the guy and I sat down with him, took him a folder of deals that I've done, showed him some before and after pictures, went over the numbers with him, and just got to the point where, you know, he felt like he can trust me and felt like I was experienced enough. And, you know, he decided he wanted to lend to me.

[Henry Washington]

Man, this is like the playbook for real estate investing. What's cool about this is this is really something anybody can do, right? You hustled to find your first deal. So you didn't use money to find the lead. You just hustled skip trace, called a bunch of people, you found your first deal, you then found your second deal on the MLS through the means that we talked about by looking for opportunity on the mls and you were able to be profitable there. And then you kind of documented each deal to show that you had some track record. And then when you were ready to start expanding your business, you were networking, looking for resources. And when you found a resource that might be interested in lending, you were able to basically show him, hey, this is the kinds of deals that I've done. These are the kinds of returns I've been able to produce. So I have opportunities for you if you are looking to make a return on your investment. Like, these are things that literally anyone can do. And I Love how you have been able to kind of execute this. And I'm sure. I'm sure it was scary. Like, the idea of talking to somebody and asking for money is probably scary. But how do you feel like that went for you?

[Lamontis Gardner]

It went well. It was definitely scary. But it was something I knew I needed to do. I needed to find another lender if I wanted to accelerate and move at a faster rate. Because before that, I was just using local banks, you know, which is okay, but you have to bring money and it's a slower process, you know, so once I met with him, you know, now I could take deals down.

[Henry Washington]

Cash, man. That's super cool. So the marketing was generating the leads. You knew you had the money coming in, so it was really just a matter of how many leads could you generate. So kind of tell us about where you are now. Tell us about your last year with investing. What does your business look like? Because it sounds like you put the pieces in place to level up. So what did that turn into for you?

[Lamontis Gardner]

So the last year, I think I did 12 deals.

[Henry Washington]

Just flips or rentals?

[Lamontis Gardner]

Both. I kept more than I sold. I mainly tried to buy and hold, but I started realizing fast that, you know, I couldn't live off of that cash flow. So as of late, you know, I got into more flipping.

[Henry Washington]

Yeah, man. A lot of the time, this business is portrayed in a way that lets people believe I'm going to buy a bunch of rental properties and then I'm going to live off the cash flow and I'm going to quit my job. That can be done. It just takes a long time and a lot of properties. Because when you have debt on these properties, your net cash flow, you know, isn't always super great. That depends on your market. There are some markets where you can get amazing net cash flow even now. But in most markets, you know, 100 to $200 net cash flow per property, it's going to take you a whole lot of properties before you can do that. And then we all realize that, you know, sometimes that gets blown out of the water when an H VAC goes out for the year or something like that, Right? And so if. If you've got a property producing five to $7,000 a year net cash flow, and then you have an unexpected expense that wasn't budgeted for, you know, your cash flow is gone. And so I think we all at some point realize, okay, the cash flow is great, but I don't want to depend on that to live off of. I would much rather Depend on something like flipping houses. And I think that's why. I mean, that's why I got into flipping houses. And so you started doing some flips. You did about 12 deals last year. Give us a breakdown. What's your portfolio look like?

[Lamontis Gardner]

Right Now I'm at 19 total units.

[Henry Washington]

And then how many. About how many flips a year are you doing?

[Lamontis Gardner]

I think last year I did five flips. This year, I'm trying to up that to at least 10.

[Henry Washington]

Okay, so it sounds like you really did scale your business and start to level up from just doing onesie twosie deals to where now you have a consistent lead flow. Is there a deal that stands out in the last year that was kind of especially good for you?

[Lamontis Gardner]

Definitely. So that was this deal that is actually in the neighborhood that I live in. And it's something I had my eye on for a while. And probably for about two years, man, I was communicating with the owner. He had a renter in there, but I would probably occasionally just pop up on his porch maybe once a month, you know. Once a month. And he finally let me take that deal down. I purchased it at 55,000, put about 75,000 in there, and I sold that for $230,000.

[Henry Washington]

So you were all in for 125, and you sold it for 230? Yes, man. So what's that, about 50, 60 net profit?

[Lamontis Gardner]

It was actually a little bit more because the. I didn't have to put out any closing costs to the seller. It was just pure deal. I just had to pay the agent. So I actually came out around like 80,000, man.

[Henry Washington]

That's. I mean, that's a solid flip, folks. I mean, I'm averaging on my flips. I average about 40 to $50,000 net profit, which is a pretty good. Most people are averaging around 30, $30,000 net profit on a flip. So to make 80 plus, man, let me borrow $20, man.

[Lamontis Gardner]

Yeah, man. That. That was my. That was my best deal. I haven't ran into one like it since. But that was my best deal last year. And I have. I have one more that was very similar. I purchased it for 53, and I put about 47 in there, and I sold that one for $190,000.

[Henry Washington]

Okay, so the one you made 80 on, that one you found just because you had been in this neighborhood, seen this guy, and been working on him for a while. The one. The second deal you talked about, was that a male deal, or was that another hustle league?

[Lamontis Gardner]

It was. It was a mailer and it actually took me a little bit longer to take that deal down because there was some like probate issues. So we had to go through court to get the deal approved. So it took us about like two to three months to get it. But it was, at the end of the day it was worth it. You know, it was worth, worth the time. And I was able to help her out a lot. You know, she just wanted to be able to get off of it. So I was able to help her out a lot and, you know, it worked out for us both.

[Henry Washington]

All right, we have to take another quick break, but when we come back, I've got some questions for Lamontis about other marketing strategies he's using to find deals and how he decides if he's going to flip a property or keep it as a rental. We'll be right back.

[Unknown]

Want to earn passive income every month without the hassle of property management? If you're an accredited or high net worth investor, PBR Capital Management offers a proven solution. Since 2007, PPR has helped nearly 2,000 investors earn over $100 million in consistent product predictable passive returns. Headquartered just outside Philadelphia, PPR manages a $1.1 billion diversified portfolio designed to provide steady income and long term growth. With decades of in house expertise, their team strategically mitigates risk to help investors achieve their financial goals. See how a PPR fund could fit into your portfolio. Visit biggerpockets.com ppr today that's biggerpockets.com ppr your home isn't just a place to live, it's your biggest investment. You spend time, money and effort making it valuable, comfortable and safe. Maybe you've upgraded the shower head, added some new curtains and finally figured out which light switch actually controls the porch light. But the best upgrade you can make is peace of mind, knowing your home is protected day and night. That's why I use SimpliSafe. Unlike traditional security systems that only react after a break in, Simplisafe helps prevent them before they happen. Their Active Guard Outdoor Protection uses AI powered cameras and live monitoring agents who can actually see if someone's lurking, talk to them, activate spotlights, and they can even call the police if needed. It's proactive security that works in real time. And the best part is there's no long term contracts, there's no hidden fees, just award winning home security for about a dollar a day. And it's why over 4 million homeowners trust SimpliSafe to protect their property and keep their home secure. Right now you can actually get 50% off a new SimpliSafe system with professional monitoring and your first month [e-mail] pockets that's simplisafe.com pockets. There's no safe like SimpliSafe. It's a fresh start to the year. Are your investments working as hard as you are? Here at BiggerPockets, we've partnered with BAAM Capital to bring you an effective way to invest. BAM Capital specializes in tax advantaged, multifamily real estate investments designed to help you plan smarter for both your finances and your future. By planning for the year ahead and leveraging the benefits available, you can kickstart your financial growth while maximizing deductions, grow your wealth and manage your taxes more efficiently this year. Discover your options with BAM Capital today. That's BAM Capital.com biggerpockets tired of dealing with the hassles of rental properties? Managing tenants, handling maintenance calls and chasing down payments can feel like a second job with short notes though. From Connect Invest, you can invest in real estate development and earn 7 and a half to 9% annualized returns without the stress of being a landlord. Simply choose a term as short as six months, receive monthly interest payments and watch your money grow effortlessly. Skip the headaches and start investing on your terms. Visit connectinvest.com bp to get started today.

Ever feel like managing your business finances is a full time job on top of your actual full time job? Well, you can find some of that lost time with Found. Found is a business banking platform that helps you effortlessly track expenses, manage invoices and prepare for taxes. You can even set aside money for different business goals and control spending with different virtual cards. I have saved so much money because Found helps me identify tax write offs and I've saved so much time that I can now devote to chasing new opportunities and doing the work I enjoy. The best part about Found is that everything is in one place. No more juggling multiple apps or losing track of receipts. Found helps you stay organized and rest easy knowing everything is handled. Oh and by the way, other small businesses are loving Found too. This Found user said Found is going to save me so much headache. It makes everything so much easier. Expenses, income, profits, taxes, invoices even. And found has 30,000 5 star reviews just like this. Open a found account at found.com biggerpockets Found is a financial technology company, not a bank. Banking services are provided by Piermont bank member fdic. Join thousands of small business owners who have streamlined their finances with Found.

[Henry Washington]

All right, we're Back with Lamontis. Let's jump back in. All right, Lamontis. So a lot of people are always interested in knowing when you get a lead. How do you determine if you're going to keep that lead as a rental property or if you're going to flip that property? Because that internal debate can sometimes be challenging.

[Lamontis Gardner]

Sometimes that can be one of the hardest decisions that you know to make. But ultimately, it just came down to the spread that I would make if I was to flip it, plus things like the layout of the house and the neighborhood that is in. So if it has like an iffy layout or the neighborhood is iffy, I would just keep that. You know, I would keep it and I would refi out of it and just put that on the rental market. But if it say, you know, just a slam dunk and the layout is good, or I could knock out a wall or, you know, just add a bedroom or bathroom or something like that, you know, I probably would flip it.

[Henry Washington]

So essentially what you're saying is properties that have unusual layouts, they're harder to sell. And when they do sell, sometimes you don't sell it for as much money, but they're not necessarily harder to rent. So, yeah, sometimes it makes more sense for you to keep them when they have an unusual layout. And then the properties where you feel like you can create big value, you can maximize your profits, then you flip those because that'll give you more cash to buy more rentals down the road.

[Lamontis Gardner]

For sure. For sure. And, you know, I love the rentals because I look at those as wealth builders down the road. And I'm still working. So in the beginning, I wasn't as focused on flipping, and I do a lot of Section 8 rentals. And I wanted to do something that fulfilled me and gave me purpose in this investing journey. So, you know, I focus on, like, single parents. You know, my mom was a single mother. So these rentals, man, they just a step down from the flips that I'm doing. You know, not the same finishes and everything, but I'm going in and I'm putting new roofs, gutting the bathrooms and renovating those new flooring and everything. So just providing a quality place to stay for those. For those moms, man.

[Henry Washington]

I love that, man. I'm passionate about the same thing. I love. I call it, you know, revitalization instead of gentrification. Right. So being able to fix something up nice and provide a place with maybe nicer finishes than they would expect to have from another landlord because it gives Them Pride, right? A sense of pride living there, pride of ownership. People deserve nice finishes. Just because you're on Section 8, it doesn't mean you don't deserve to have a, you know, beautiful place to live, man. I love that.

[Lamontis Gardner]

Yeah. And I think it works. You know, it's a win, win for, you know, for me and tennis, you know, just providing them a quality place to someone that they're proud of. I think it, it minimizes my turnover. The renovation on the front end also minimizes my repair. So I don't have a lot of late nights, maintenance calls, you know, just due to the time I took to renovate it on, on the front end. And also my tenants take pride in the. In the units that they're renting. So, you know, it's a win win.

[Henry Washington]

For us both, man. That's super cool, man. Super cool. I'm super proud of you for doing that. And, you know, a lot of people have a. A bad impression of Section 8. And a lot of the times it's just unjust. They've never really done it themselves. They hear, so I love to hear when somebody is doing it and is taking care of the tenants, because I don't care who you are, man. There are bad tenants at every price point. It's not just that there's bad tenants and sec. There's bad. I've had terrible tenants that were paying me $2,000 a month. Right. It's, you know, there's this, this stigma that Section 8 has bad tenants. It's not that Section 8 has bad tenants. It's that landlords are bad at tenant selection.

[Lamontis Gardner]

Yes.

[Henry Washington]

And if you can get good at tenant selection, no matter what price point your rental is at, then you can have quality tenants who take care of your properties and you can provide great housing to great people.

[Lamontis Gardner]

Right, right. Yes. And that's one thing that I studied before getting into the rental world. I wanted to know how to screen to find the best tenants possible. So, you know, I have a detailed screening process from, you know, background to credit check, income verification, even driving by and talking to old landlords. So I'm just making sure that I put the right person in there. But, you know, once they're in there, I make sure I take care of them and the unit.

[Henry Washington]

Awesome, man. It sounds like you do a lot of direct mail. Are there any other marketing sources you're using that seem to be working that people could take a look at?

[Lamontis Gardner]

Not right now. I mainly do direct mail in the beginning. I did some cold calling just due to the lack of funds. But I figured out really quick that I. I don't like cold calling. The cold calling, it increases the chances of me getting, you know, cursed out, you know.

[Henry Washington]

Yeah, that's fair.

[Lamontis Gardner]

I like the direct mail because it doesn't take a lot of time, and I just bring the leads to me, and majority of the people that call me actually want to sell their home, so that's my favorite form of marketing.

[Henry Washington]

So it looks like you've been able to build a really impressive business over the last few years, and that's inspiring for many people. So what's driving you now? What are you moving your business towards in the next year? Are you keeping things kind of the way they're going? What's the future look like for you?

[Lamontis Gardner]

I'm just trying to keep it around, like, 20 deals a year. So like I said last year, I did 12, but I want to up that into 20, and that's something that I want to do from year to year. Moving forward, that's like, kind of around. Hover around that 20 point. And, man, right now, what keeps me going, like I said, is providing quality place to live for the tenants and also, also, you know, my family, you know, I want to just be able to provide a quality lifestyle for. For my wife and my kids. So those two things right now, driving. But I would also say, as far as the business goes, I think, you know, right now just kind of focus on, like, the stabilization of it and just becoming more organized and developing more systems. I hired a va, so that's been helpful for me tremendously. So that's kind of where I'm at, just stabilizing it, you know, getting a grip on everything and just maintaining the amount of deals that I'm doing year to year.

[Henry Washington]

Yeah, that's cool, man. One thing I learned this past year in 2024, was that I didn't want to have some massive flipping business doing 50 to 100 flips a year. I kind of realized I like the spot of about 20, 20 flips a year, plus acquiring enough rentals to help me offset my capital gains. And that's like what I need and want just for. For me and my family. And. And I think it's good because scaling is great, but you got to figure out how far you want to scale, because big portfolios have big portfolio problems. And if you're not prepared to handle those big portfolio problems, then this business goes from being fun to being terrifying. Real fast.

[Lamontis Gardner]

For sure, man. I'm big on being purposeful with what I do. I like to have a purpose and I like to be fulfilled. So I knew a while ago that I didn't just want to have this, this 100 flips a year business because I didn't want to create another job for myself. You know, I wanted something that was manageable and that was, you know, that I enjoy doing on a day to day basis. So.

[Henry Washington]

And speaking of jobs, I heard you say that you still work your W2. Is that something you plan to continue to do? Are you looking to get out of it?

[Lamontis Gardner]

Yeah, I'm looking to get out of it. I think this probably would be my last year there. I think I've gotten to the point where my cash flow from my rentals has exceeded my wife you two month to month income. So along with that and the flipping, I think I'm able to pull away after this school year.

[Henry Washington]

Okay, that's awesome. Well, I hope, I hope they don't listening to bigger pockets before you get to tell but no, I mean it's super cool that you kind of took the time to build your business the right way and it gives you the opportunity, the freedom to be able to choose to leave at the right time. Because I'm sure having the job helps you stay bankable, which helps you be able to continue to grow your business. One last question. What do. I heard you say you have a va. What does your team look like if you're doing, you know, 10 flips? You want to scale to 20? Is it. Do you have a big team around you?

[Lamontis Gardner]

It's, it's mainly just me. I made that one hire in a va, but I have, you know, a pretty decent construction crew that does most of my houses. So you know, just having those and not having to search for contractors for from deal to deal. Man, they've been really, really good. Like, you know, if I had to give the MVP to anybody within my business, it would be those guys.

[Henry Washington]

So you tell it like a good contracting crew is literally like the, the missing link in this. If you have that, you can go pretty far.

[Lamontis Gardner]

Yeah.

[Henry Washington]

So I assume that these contractors are third party. So they're on a contract basis. They're not hired in house?

[Lamontis Gardner]

No, no, no. They're 1099. And so that's another thing that motivates you as well because you know when you have these, these contractors, you have to keep them busy. So I'm having to make sure I'm keeping deals constantly coming because if not, you know they're going to go find work elsewhere. So that's another thing that just, you know, motivates me to keep buying, man.

[Henry Washington]

That's amazing. Well, lamontes, I think your story is truly inspiring. I love what you're doing for your family. I love that you've created a business that fits your lifestyle. I think that's important for people to see because I think sometimes people feel like they need to build this business and just scale it to the moon and that's not necessary. You can build a business that fits and provides the lifestyle that you want and you can just try to maintain that going forward. So I love how you've done that. I love how you've done it, you know, fairly quickly. And thank you so much for sharing this inspiring journey with people.

[Lamontis Gardner]

No, I appreciate you for having me, man. Just grateful again to be here.

[Henry Washington]

Thank you, Lamontis for joining the show today. If you think the Bigger Pockets audience could learn from your own investing journey, you can apply apply to share your story just like Lamontis [e-mail] Guest I am Henry Washington and we'll be back with another episode of the BiggerPockets podcast in just a few days. Thanks for listening.

[Unknown]

Your home isn't just a place to live. It's your biggest investment. You spend time, money and effort making it valuable, comfortable and safe. Maybe you've upgraded the shower head, added some new curtains, and finally figured out which light switch actually controls the porch light. But the best upgrade you can make is peace of mind, knowing your home is protected day and night. That's why I use SimpliSafe. Unlike traditional security systems that only react after a break in, Simplisafe helps prevent them before they happen. Their Active Guard Outdoor Protection uses AI powered cameras and live monitoring agents who can actually see if someone's lurking, talk to them, activate spotlights, and they can even call the police if needed. It's proactive security that works in real time. And the best part is there's no long term contracts, there's no hidden fees, just award winning home security for about a dollar a day. And it's why over 4 million homeowners trust SimpliSafe to protect their property and keep their home secure. Right now you can actually get 50% off a new SimpliSafe system with professional monitoring and your first month [e-mail] pockets that's simplisafe.com pockets. There's no safe like SimpliSafe.