December 3, 2019 by Dymphna

How Emily and Aaron Created a Cash Flow Positive Portfolio (And Three Lessons You Can Learn)

With I Love Real Estate, Emily and Aaron learned that positive cash flow properties are not a myth.

Have you ever tried your hand at property investing?

Thousands of Australians have – and many of them come to the same conclusion…

They decide that finding a cash-flow-positive property is a myth. It’s a story made up by real estate agents to seduce hapless would-be property investors… 

But they’re dead wrong. And that misconception holds many people back from achieving amazing things.

It almost stopped Emily and Aaron from building the portfolio of their dreams.

A Couple’s Journey Through Property Investing

Both Emily and Aaron had rotten experiences with property investing before coming to I Love Real Estate.

Emily was a struggling actress who’d gotten stuck in the mindset of thinking accumulation is the key to investment. She found herself going nowhere fast when it came to building a portfolio that actually made money.

Aaron had a different experience. He’d built a property, which he eventually sold 10 years later for a small profit. He’d also had a bad experience with a multi-bedroom unit that he ended up selling at a loss.

By the time the two met, they already had plenty of property investment battle scars between them.

And they struggled against this belief that positive cash flow properties are a myth.

But they still wanted to try.

The couple moved to Melbourne and found the market almost impossible to break into. 

While they were there, Emily had attended I Love Real Estate seminars five times. But she didn’t move forward with any of the knowledge she’d gained.

As she puts it:

“I didn’t know what I didn’t know, that I needed to know.”

Finally, the couple made the decision to move to the Gold Coast. There they went to another of our seminars. For one reason or another, something clicked. That’s when their real estate journey truly started.

The Success Story

The couple had a negative cash flow of $50,000 when they decided to join the community. They had a bunch of investments that weren’t taking them anywhere.

They didn’t believe a cash-flow-positive property was possible. Getting out of their situation seemed hopeless… 

But joining our community showed them that there were other ways to do things.

They decided to buy a property in Queensland and renovate. They paid $336,000 for it, and soon started work.

Unfortunately, life got in the way.

Emily had to return home to try and support a relative who had an issue with addiction. That same relative also rented from her… and had trashed the property.

Dealing with these personal issues slowed the couple down. And when you add in the fact that they had very little money to work with, you can see just how difficult their first steps were.

And on top of all of that, they took part in a TV show that showcased the renovation of their property.

Happily, they made it through all of the stress and managed to turn that first property into a cash-flow-positive one. It wasn’t a myth after all!

And after spending $30,000 on the renovation, they upped its value from $336,000 to $580,000!

It took them six months, and they learned many lessons that they’d take through into their next investments.

The second project saw them repeat the same basic process – buy and renovate.

But this time, it only took them six weeks to get the property up and running. Again, they did this under contract to the TV show they’d worked with. That meant they eventually had to sell it, even though it became a cash-flow-positive property too.

The sale funded a six-week trip to Melbourne. And it showed them that their strategy worked.

They bought their next property for $400,000 and spent six weeks on the renovation. They spent $40,000 on the improvements and sold the place for $550,000!

Other properties followed, and Emily and Aaron used the same strategy to profit from them. They’ve also worked out a strategy for controlling an investment property without owning it. This will strip away even more complexity from their investment process.

Where Are They Now?

Emily and Aaron are in a much stronger position financially than they were before. They’ve eliminated the negative $50,000 cash flow and they have a working strategy in place.

Now, they’re free to pursue their property investment ambitions…

And they’ve realised that it’s possible to create positive cash flow properties!

We think there are some valuable lessons to learn from this story, including…

Lesson #1 – You Don’t Know What You Don’t Know

Continuing education is the key to success in property investing.

Both Emily and Aaron had some experience before they came to ILRE. However, they soon discovered that there was plenty they didn’t know about.

Learning more helped them to develop a strategy that works for them. So, the lesson is that you need to invest in yourself and your education as much as you invest in property.

Lesson #2 – Just Because You Can, Doesn’t Mean You Should

Emily believes that working with ILRE taught her to work smarter, rather than harder.

There are many things she and Aaron could do with the properties they invest in. But that doesn’t mean they should do those things.

It’s crucial that you have a defined strategy to follow. Chasing shiny objects and doing extra things just because you can will end up costing you money.

Lesson #3 – Leverage Airbnb

Emily and Aaron generate much of their positive cash flow through Airbnb.

This is an option many investors don’t consider. And it’s one that’s ideal for those who have properties in popular tourist or business destinations.

The lesson here is that you’re not limited to taking on full-time tenants. Companies like Airbnb give you other options when you’re renting a property out.

Overcome a Tough Start

Emily and Aaron avoided falling for the fallacy that it’s not possible to create positive-cash-flow properties.

Now they have a strong portfolio and a defined strategy.

The couple understands property investing better than they ever have before. And thanks to their work with the ILRE community, they’re able to consistently achieve positive cash flow on their investments.