Podcast Summary: Real Estate Rookie – Episode: From Single Mom (Working 3 Jobs!) to 5 Rentals in 2 Years
Introduction In this inspiring episode of Real Estate Rookie, hosted by Ashley Kerr and Tony J. Robinson from BiggerPockets, listeners are introduced to Liz Connolly—a single mother who transformed her life by venturing into real estate investing at the age of 40. Balancing three jobs while raising her daughter, Liz’s journey from financial strain to owning five rental properties in just two years serves as a beacon of hope for aspiring investors who believe it’s too late to start.
Catalyst to Start Investing Liz Connolly shares what finally propelled her to take the plunge into real estate investing after years of research and financial preparation.
- [00:48] Liz Connolly: “I had finally banked enough that I was like, okay, it's really time to take some action.”
- [01:35] Liz Connolly: “What's the worst case scenario, right? If I can afford the mortgage and the place just sits vacant, then that's worst case, right? So why not jump in and at least try?”
The 30 Day Stay book by Sarah Weaver and Zeona McIntyre served as a significant motivator, highlighting the lucrative Midwest market and encouraging Liz to overcome her fears.
Choosing the Right Market Liz explains her decision to invest in out-of-state mid-term rentals (MTRs) and why she selected specific locations.
- [02:50] Liz Connolly: “MTR being a midterm rental was really to get it furnished and be a safe haven for those nurses who are traveling.”
She opted for St. Louis, inspired by successful strategies discussed in her readings and supported by a reliable BiggerPockets agent familiar with out-of-state investments.
- [04:07] Liz Connolly: “I did use BiggerPockets to find a good agent, an investor-friendly agent in the area.”
Financial Planning and Preparation Liz emphasizes the importance of personal financial stability before diving into real estate.
- [05:20] Liz Connolly: “I took care of some outstanding debts. I had credit cards, made sure I had my own personal emergency fund.”
By ensuring she had a $10,000 reserve for down payments and furnishings, Liz mitigated risks and felt secure in her investment decisions.
Building a Team and Overcoming Fear A robust support system played a crucial role in Liz’s confidence to invest out of state.
- [07:59] Liz Connolly: “I trust my agent, you know, and that's really. I did talk to a few different agents before finding the one that I really wanted to work with.”
Her trust in her agent and the guidance of a seasoned property manager eased the apprehensions associated with out-of-state investments.
Balancing Multiple Jobs and Personal Sacrifices Managing three full-time jobs while establishing her real estate portfolio was no small feat.
- [21:43] Liz Connolly: “I was working three jobs and it was busy days... planned to be a short term thing really.”
Ashley Kerr reflects on the sacrifices Liz made, highlighting the determination required to achieve such milestones.
- [22:29] Ashley Kerr: “I think that just shows like how bad you really want something.”
Scaling the Portfolio and Diversifying Strategies After her initial success in St. Louis, Liz expanded to Cedar Rapids, Iowa, and later ventured into short-term rentals in the Poconos and began her first flip.
- [26:00] Liz Connolly: “I did have shiny object syndrome... learning what I like about it and the different aspects.”
This diversification allowed her to explore various facets of real estate, reinforcing her foundational knowledge across different investment strategies.
Tax Benefits and Strategic Planning Liz leveraged tax strategies to maximize her investment returns.
- [27:18] Liz Connolly: “I ran a cost segregation study which allowed me to front load a lot of the depreciation on that property in the first year.”
This strategy enabled her to offset significant portions of her taxable income, effectively boosting her financial position.
Life Changes and Future Goals The flexibility gained from her real estate investments has profoundly impacted Liz’s quality of life.
- [35:10] Liz Connolly: “The ability to work from my phone anywhere has really released me from the shackles of my desk.”
She envisions achieving financial freedom within the next nine years, allowing her to focus more on her family and personal interests.
Common Traps and Red Flags for Rookies Liz advises new investors to conduct thorough market research and understand future growth prospects.
- [33:09] Liz Connolly: “Look for growth... what is bringing people to that area for the specific type of rental.”
She underscores the importance of evaluating long-term potential rather than just current market conditions.
Conclusion Liz Connolly’s journey exemplifies that it’s never too late to start investing in real estate. Her story is a testament to resilience, strategic planning, and the willingness to make necessary sacrifices for long-term financial freedom. For aspiring investors, Liz’s experiences offer valuable insights into overcoming fears, building a reliable team, and leveraging financial strategies to create a sustainable and profitable real estate portfolio.
Where to Connect with Liz Connolly Liz can be found on Instagram at @HarlowHomes for those looking to follow her ongoing journey and gain further insights into her real estate endeavors.
Thank you for listening to this episode of Real Estate Rookie. Stay tuned for more inspiring stories and actionable advice to kickstart your real estate investing journey.