BiggerPockets Real Estate Podcast - $400,000/Year From One Unique Rental Property

Want BIG cash flow numbers? How about $400K/year net operating cash flow? Would that be enough to set you financially free? For Amanda and David Fornelli, this is reality, and it’s all thanks to one very unique rental property investment. And even though these numbers are massive, Amanda and David aren’t that removed from being real estate rookies. Just five years ago, they didnI h’t own any rental properties and were W2 workers just looking for a way to make some extra income. After finding themselves in a real estate investing program, this power couple began flipping any house they could get their hands on in Southern California. Within three months, David had made twice as much from flips as he did at his day job, so he quit, and the rest is history. Now, they’re full-time investors, still flipping houses, but ALSO running a multimillion-dollar boutique hotel that’s making them hundreds of thousands of dollars a year in profit. In today’s episode, Amanda and David talk about leaving their jobs to flip houses full time, how they slowly realized that short-term rentals beat the short-term profits of house flipping, why they’re still investing in high-priced Southern California, and the massive net operating cash flow they’re making off their very first commercial real estate investment—a small, but very profitable boutique hotel. ~~~~ Join BiggerPockets for FREE 👇 https://www.biggerpockets.com/signup?utm_source=owned_media ~~~~ Expand Your Investing Knowledge With the BiggerPockets Books: https://store.biggerpockets.com/?utm_source=owned_media ~~~~ Find an Investor-Friendly Agent in Your Area: http://biggerpockets.com/agentmatch ~~~~ Find Investor-Friendly Lenders: http://biggerpockets.com/findlenders ~~~~ Hear More From Henry On The “On the Market” Podcast: https://link.chtbl.com/OTM ~~~~ How to Buy a Hotel: Breaking Down Tony’s FIRST Commercial Real Estate Deal: https://www.biggerpockets.com/blog/rookie-367?utm_source=youtube&utm_medium=description&utm_campaign=none ~~~~ Private Capital Explained: The 4-Second Pitch to Unlock Unlimited Funds w/Amy Mahjoory: https://www.biggerpockets.com/blog/real-estate-636?utm_source=youtube&utm_medium=description&utm_campaign=none ~~~~ Stay At Yara Palm Springs: Instagram: @yarapalmsprings or https://www.instagram.com/yarapalmsprings/ Website: https://www.yarapalmsprings.com/ ~~~~ Connect with Amanda and David: Amanda Instagram: @_amandafornelli_ or https://www.instagram.com/_amandafornelli_/ David Instagram: @davidjfornelli or https://www.instagram.com/davidjfornelli/ Portfolio Instagram: @nopali_properties or https://www.instagram.com/nopali_properties/ Website: https://www.nopaliproperties.com/ ~~~~ Connect with Henry and Rob on BiggerPockets: Henry: https://www.biggerpockets.com/users/henryw22?utm_source=youtube&utm_medium=description&utm_campaign=none Rob: https://www.biggerpockets.com/users/robuilt?utm_source=youtube&utm_medium=description&utm_campaign=none ~~~~ Follow Henry and BiggerPockets on Instagram: @thehenrywashington or https://www.instagram.com/thehenrywashington/ @biggerpockets or https://www.instagram.com/biggerpockets/ ~~~~ Connect with Rob (Robuilt): Instagram: https://www.instagram.com/robuilt/ TikTok: https://www.tiktok.com/@robuilto X/Twitter: https://www.twitter.com/robuiltchannel YouTube: https://www.youtube.com/c/Robuilt Show notes at: https://link.chtbl.com/BPRE 00:00 Intro 01:26 Quitting Their Jobs to Flip Houses 04:14 Pivoting to Short-Term Rentals 10:40 Mitigating Risks While Flipping 13:27 Selling Turnkey Short-Term Rentals 17:52 Buying a 10-Unit Hotel! 30:20 Making $400K Per YEAR 24:40 Lessons Learned From Buying a Hotel 38:19 Connect with David and Amanda!