$5,000/Month Cash Flow from 3 Small Multifamily Properties in JUST 5 Years

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 14 April 2025

⏱️ 45 minutes

🔗️ Recording | iTunes | RSS

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Summary

Making $65,000 in yearly cash flow from three rental properties?! Today’s guests are on a mission to create generational wealth, and they’re doing it with an investing strategy YOU can use to scale your real estate portfolio fast, too—small multifamily properties! Welcome back to the Real Estate Rookie podcast! Daniel and Rebeca Hawthorne didn’t come from money, but they’re looking to reverse that trend and give their family a much better life. In just FIVE years, they have built a small multifamily portfolio of 32 rental units. How did they do it? In this episode, they’ll share how they leveraged home equity to buy their first, second, AND third rental property! Of course, it hasn’t all been smooth sailing. Daniel and Rebeca have had a few tenant horror stories, including one that involves a fraudulent caretaker and over $30,000 in property damage. But despite all the hurdles and growing pains, they’re building massive wealth by amassing units and slowly converting long-term rentals into medium-term rentals for higher cash flow. Stay tuned to hear their full story from childhood poverty to financial freedom! In This Episode We Cover How Daniel and Rebeca scaled to 32 rental units in just FIVE years The blueprint to create generational wealth with small multifamily real estate Leveraging your home equity to fund investment property down payments How to defer capital gain taxes on your property sale with a 1031 exchange Freeing up your time, energy, and ability to scale by hiring a property manager And So Much More! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-548 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	We've said it before, but real estate is one of the best wealth-building strategies the beginner investor can engage in.
0:06.9	And today's guest, Daniel and Becca Hawthorne, are the embodiment of that principle from growing up with housing and stability as a young person, building a 32-unit portfolio in just five years.
0:17.5	It's literally a blueprint for how ordinary everyday people can create extraordinary
0:21.6	wealth through strategic real estate investing.
0:29.1	This is the Real Estate Rookie Podcast, and I'm Ashley Care. And I'm Tony J.R. Robinson, and
0:34.5	let's give a big warm welcome to Daniel and Becca.
0:39.2	Guys, thank you so much for joining us today.
0:40.4	Absolutely. Thank you.
0:41.8	Well, welcome to the show.
0:43.5	I want to start off with Daniel.
0:48.4	Could you walk us through on kind of a high level, your journey of getting your first multifamily property?
0:49.6	I had heard about real estate investing, had a number of friends who either had parents
0:55.6	who got into it or they themselves did.
0:59.1	And it seemed somewhat impossible for me.
1:03.4	But nevertheless, I started looking at the Bigger Pockets podcast.
1:07.8	Really, I think what happened for us was that I ended up in the spot where we had some good capital coming in.
1:16.0	And then I started to take a deeper look at the Bigger Pockets Forum in particular because I realized, you know, I had a lot of questions despite all the research I had done.
1:25.8	And the forum allowed me to tailor the questions towards what, you know, whatever it was that we were looking for.
1:31.3	Whether it was, hey, we need to have insurance or how do we find an agent?
1:35.3	How do we even identify what the right market is?
1:38.3	Do we invest in the city we live in or elsewhere?
1:41.3	And just got a bunch of information through that and was able to really leverage
	...

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