---
title: 'He''s Making Over $100K/Year Cash Flow by ONLY Buying $100K Houses'
source: 'https://youtube.com/watch?v=KKj3uwmYN1g'
video_id: 'KKj3uwmYN1g'
date: 2026-08-04
duration_sec: 1936
---

# He's Making Over $100K/Year Cash Flow by ONLY Buying $100K Houses

> Source: [He's Making Over $100K/Year Cash Flow by ONLY Buying $100K Houses](https://youtube.com/watch?v=KKj3uwmYN1g)

## Summary

Nathan Nicholson, a real estate investor from Louisville, Kentucky, shares his journey from a top salesperson with only $30,000 in savings to owning 23 rental properties generating over $100,000 in annual cash flow. He emphasizes a conservative, slow-growth 'tortoise' approach, focusing on cash flow, paying off properties, and leveraging lines of credit to scale without outside capital.

### Key Points

- **Nathan's Background and Start** [00:02] — At age 33, Nathan was a top salesperson but had only $30,000 in savings. He liquidated his 401(k) to buy rental properties in Louisville, Kentucky, despite warnings from others that he would fail.
- **Current Portfolio** [02:56] — Nathan now owns 23 single-family rental properties, with 10 free and clear. His total rents are $311,000, total cash flow is $143,000, and true net (after all expenses) is $112,000.
- **Tortoise Investor Philosophy** [04:02] — Nathan describes himself as a 'tortoise' investor, being very conservative and only moving forward when cash flow covers expenses. He reinvests 100% of his cash flow back into the business.
- **Strategy: Cash Flow First** [05:33] — He started by buying houses with cash, then used 20% down payments and renovation loans (203k). He emphasizes the importance of 20% down to ensure proper cash flow.
- **Using Lines of Credit** [08:43] — Nathan pays off properties quickly to build equity, then refinances to get lines of credit. He now has about $1 million in lines of credit across 10 properties, which he uses as his own bank to buy more houses.
- **2026 Strategy: 1.3 DSCR Rule** [11:18] — Nathan now focuses on a 1.3 Debt Service Coverage Ratio (DSCR) as his new benchmark, replacing the old 1% rule. This ensures he makes money after debt payments.
- **Creative Financing Preferences** [13:35] — He prefers owner financing on free and clear properties and commercial financing tricks over sub-to (subject-to) deals because they give him more control and less risk.
- **Direct to Seller Marketing** [14:59] — Nathan does direct-to-seller marketing (postcards, AI-generated lists) to find deals, saving about $10,000 per deal by eliminating middlemen like wholesalers.
- **Example Deal: Lightfall Property** [17:33] — He bought a four-bedroom house for $170,000-$175,000, which was worth $125,000 (likely a typo, but he gained immediate equity). He raised the rent from $800 to $1,400 over six months, turning a $100 monthly loss into $400 net profit.
- **Optimization 1: Property Management** [20:31] — He switched property managers, saving 4% (from 12% to 8% management fee), which saves him $12,000 per year on $300,000 in rents.
- **Optimization 2: Rent Increases** [22:48] — He raised rents by 3% across his portfolio, adding about $8,000 per year. He keeps rents slightly below market to retain good tenants but adjusts to keep pace with inflation.
- **Optimization 3: Paying Off Properties** [26:42] — He wired $56,000 to pay off a property that nets $600/month, yielding about 10% return. This also adds $100,000 to his line of credit, increasing purchasing power.
- **Optimization 4: Refinancing When Rates Drop** [28:45] — He plans to refinance his paid-off properties when rates drop to around 5.5%, using appreciation to pay off more properties and increase cash flow by $100-$500 per month.

### Conclusion

Nathan's success stems from a disciplined, cash-flow-focused approach, leveraging lines of credit and optimizing existing properties. His strategy of paying off properties and waiting for favorable refinancing rates positions him for continued growth in 2026.

## Transcript

to start buying real estate, people told him he would fail. They said he'd lose everything. But today, he owns 23 rental properties, generating more than properties, generating more than $100,000 in annual cash flow. Nathan was
33 and the top salesperson at his company. But years of top performance still left him with only $30,000 in his savings account, hardly enough to dream about retirement. So, Nathan liquidated his retirement fund and he started
buying rental properties in his hometown of Louisville, Kentucky. They were little brick houses, most of them under a hundred grand. That was 13 years ago. Now, Nathan generates six figures every year after all his bills are paid and
his financial future is secure. It's a simple formula. Buy the smallest house possible, fix it up, and watch the monthly rent checks roll in. Nathan's approach is so boring that he actually calls himself the tortoise. But don't
let that confuse you. This strategy absolutely works. And today, he's sharing his exact, repeatable formula. The one rule he never breaks, how he's he scales, [music] and how he's pivoted his strategy for
2026. >> [music] Chief Investment Officer at BiggerPockets. Thank you all for being
here. We got a great show for you today. We're bringing on Nathan Nicholson, who is one of the most popular BiggerPockets guests in 2025. You can hear his full story by going back and listening to episode 1132 from last June. But today,
he's back with an update, what he's been up to, how he's pivoting to make the most of current market conditions. So, let's bring on Nathan. Nathan, welcome back to the BiggerPockets podcast. Great to have you
>> Yeah, thank you for having me. >> Some of our audience may not have on the show. So, maybe just give us a little bit of background about yourself >> Yeah, my investing career, I mean, from the prior podcast, it was how to
basically make money with $100,000 or less rentals, in all honesty with you. And so, realistically, my my my beginnings kind of happened with me something different at the age of 33. Been a top sales person and only having
going, "Man, if I'm really good at sales, why do I only got $30,000 in my I do?" And I had a couple friends of mine basically talk about real estate investing and and what they were doing. And so, I sold my 401k off, took every
penny I had, had a had a dream, to say the least, and put all my money into of been doing it ever since. So, that's been about 13 to 14 years at this point. >> Tell us a little bit about what your portfolio looks like here today.
>> Yeah, I mean, from the last time we spoke, it's grown a little bit. I'm sitting at 23 properties, all single-family residence at this point. So, I've got 10 free and clear. >> Oh, wow.
Friday. So, I'm paying off a a little two-bedroom house that'll net me about 600 a month. But, beyond that, I mean, as far as my breakdown, my rents have gone up. My total cash flow has been going up cuz I've been trying to
shurify my my my property business. But, my rents are at about 311,000 right now. my rents are at about 311,000 right now. Total cash flow That's total in is 143. And my true net, which is what I go by, I don't say cash flow, I'll go by true
net. True net is $112,000 right now. And the last I think the last time we spoke, >> Is it fair to say then then you reinvest 100% of your cash flow back into some sort of business, even if it's not for
>> 100%. Yeah. >> Is that hard for you? Do I Do you ever get tempted to just live off of it or you're still in growth mode? >> I mean, it's you know, I'm the tortoise investor, right? I'm very conservative.
So, to your point, I've thought about it. I'm 46 years old. I would love to retire at 55. I mean, I could probably retire now, but at the same time, it's haven't really accomplished really what I want to do yet. I think most investors
will tell you the same thing. It's like, I have not reached that that that spot. that's what I'm going towards. But at 55, I think I'll be there. I really want to be at 30 doors and have about 20 of them paid off before I really go full on
real estate, and that's at about 55 for me. >> Okay. I I love the goal, and it seems very achievable, and you're well on your Maybe before we talk about just what you've been up to recently, you can
remind everyone how you got here, cuz this is where most people want to get to. 10 paid off rentals, incredible. 9 grand a month in cash flow. Amazing. grand a month in cash flow. Amazing. Like, what was the primary strategy you
used to get your portfolio to this size? >> Being really safe is the best way to put it. I took a little bit of leverage in the very beginning. I took quite a bit of risk. I cashed out my 401k. A lot of people would tell you not to do it, but
only thing that you could use. You might as well do it, cuz it's like I mean, And that's what I did, and it was very risky, and a lot of people told me that how your friends and people around you will say, "You're going to fail. You're
going to lose everything." But in situations like this, if you believe in yourself, it really does help. And I mean, 13 years, 14 years ago, that was the catalyst. It was a dream in that and me cashing that 401k out, and just
I'm a tortoise. I mean, you'll hear people use this termin- analogy, turtle or the hare. I literally will not move forward unless I have cash flow to cover my expenses, and so I've really stayed true to that. And so, that goes back to
the first property. If you only make 300 a month, well, that's 3,600 a year. What do I do with that? And you leverage it to 7,200 to 11,000 to 12,000 to 15,000. You keep slowly pushing that forward, and that's very beneficial. But that's
why I've been able to do this at the rate that I have and actually have 10 to 11 paid off properties is because of following that same process. >> I love the philosophy. Subscribe to the same one myself. You know, it sounds
patient and slow. And you're talking you're saying all the things I agree with that you should be slow and just take your time with it. But it's really not that slow. Like you said you've been doing this for 13 or 14 years. Going
not necessarily terrible place financially, but not where you wanted to be and not having the level of savings that you wanted, not having the nest egg that you wanted to being
pretty darn close to financially free if you kind of wanted to go in that direction in 12, 13 years. Like that's incredible. It takes most people >> 40 years plus to do that if you do it at all. So many people never accomplish
that. So I think what we're saying is patient in real estate is still faster patient in real estate is still faster than almost any other avenue to pursue this kind of financial security. >> I agree fully.
did the financing cuz you said you started with 401k. You know, you cashed that out. You can't buy 22 properties in that. So were you just saving in between acquisitions and reinvesting cash flow? Was there something more you were doing?
>> The 401k I started buying the houses with cash up front because my concept dominoes to fall in a way that made me more money. And also like a cat with a play with cuz I didn't know what I was doing, you know? I literally did not
know. And so the best [laughter] the best course of action was to pay off my first house and it was in a state sale for about $40,000, give or take 38, and I paid it off cash and it was livable. And then once I started running out of
I started putting 20% down and I was doing renovation loans. Those are 203 Ks in the mortgage world. A lot of people use those and that helped me out with a couple of them at the very beginning. But then what I realized real quick was,
you know, I wanted to have a better kind of loan set and so I started doing single family residence and using my personal credit and putting 20 percent down. So I'm a I'm a staunch proponent of 20% down. It's It's almost one of the
only ways you can cash flow a property properly right now is with 20% unless deal that you're doing. >> You've never like gone and raised outside capital. You've just figured out a way to do it with a W-2 income,
>> saving and relationships with banks. Like you were able to just over 13 years build a very impressive portfolio sort of the old-fashioned way? >> The old-fashioned way. Yeah, correct. And I I know a lot of people that do
raise capital and that's a very good way to go about it, right? That's your lending structure. But what I what I figured out is you have to be a cash buyer to get these houses these days. And so my whole motivation once I
figured that out was to pay my properties off as fast as I could because, you know, unlike a HELOC or a line of credit on a personal house, you know, you can put it on your home and use it to buy houses, right? And
have that liquid. But you can also get business lines of credit and that's kind of my focus of what I've done. So every time I pay a property off, I refinance It has zero money on it, but my line of
I'm about to pay off. I'll get another extra $100,000 on my line of credit. And then I have a million dollars in a line of credit on 10 properties individually And I can use that to buy buy houses as my my bank, technically. That's how I
got around crowdfunding. It is is literally doing it that way, slow and steady, but you can absolutely do that if you just take your time. we come back, Nathan, I'd love to talk to you more about what you're up to
today and how you're making deals and your portfolio grow even during these challenging market conditions. Stick with us. We'll be right back. You know what changed the way I invest? Realizing that scaling rentals shouldn't mean
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constantly checking if rent came in. Now, everything runs through Base Lane. It's Bigger Pockets' official banking platform that automates my rental cash flow. Rents get deposited into dedicated property accounts, transactions get
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apart. Now, my rentals practically run in the background, and yours could, too. Deposit qualifying rental income into Base Lane for a chance to win $10,000. Welcome back to the Bigger Pockets podcast. I'm here with investor Nathan
Nicholson about his impressive career he's built in Louisville, Kentucky, over the last 13, 14 years. Now, we've alluded to it a few times. Everyone here listening to it knows it. The market has changed. It's different.
And so, tell us a little bit about your approach here in 2026. >> The first thing I would tell you is I only really focus on a 1.3 DSCR now. >> And that is the very true number. That's kind of your new 1% rule is the best way
to put it. And a 1% is usually break even. 1.3 you're going to make a couple >> And for everyone listening, if you're not familiar with the acronym, DSCR stands for debt service coverage ratio. It measures your debt service, basically
what you're paying to your loan company every month versus your income. targets, but it sounds like Nate, yours is a 1.3. Some banks will lend at different ratios, 1.1 sometimes, 1.2. Nate looks
for 1.3. If you're interested in getting a DSCR it. You don't have the same level of underwriting. Sometimes it can be a lot quicker. If you don't have a W-2 income, you don't have necessarily the credit
that most banks are looking for. These are loans that are underwritten like commercial loans, but are specifically designed for like people like us, right? They are These are loan products created for our kinds of investors. If you are a
pro member, we do have discounts on DSCR loans. You can go check those out from loans. You can go check those out from Keevy at biggerpockets.com/pro.
right? So, that's your number. That's getting you cash flow in Louisville. in Louisville right now? >> Not really. you're holding the line at 1.3. So,
1.3. That's the way you got to do it. >> Yeah, you don't want to lose money. And so, that a lot of people will tell you appreciation isn't a priority, and it could get a 1% rule house, break even on it. It could have, you know, low cap X
you're doing a BRRRR or whatever that you're doing, you know, new floors, you're barely making it and you have a, you know, I had a house, a rat house. I $27,000 to repair this house. So, a normal
person wouldn't be able to absorb that, you know, that's a huge hit. And without anyone else would have been hurt. So, yeah, the 1.3 rule is really steadfast me here. I've I've really followed this approach from day one. But, the other
thing is the creative financing angle is, you know, the people some people sub-to person. I know a lot of people that have a lot of a lot of positive uh doing sub-to. I personally like owner financing on free and clear properties.
I like doing the tricks that I just gave you with commercial financing. I like these little tricks cuz I'm in control. That is the one thing I I sub-to, you don't always have control. The ways that I'm telling you, you have control. Your
name's on the personal guarantee. You own the property, stuff of that nature. >> This makes sense to me. First of all, your affinity to seller financing over what you've told me a little bit about your risk tolerance.
>> Yeah, exactly. Like I I'm not a a sub-to expert, but there is some gray areas in sub-to that add risk. And it might be right for some people presuming that it's done ethically and legally. There still are
some gray areas, and those are things that you need to consider. >> When you do seller finance, if someone owns a property outright and they're writing you a loan, like that is very low risk, very high upside in my
opinion. And although they're not the easiest to find, they're out there. Like I hear investors doing them all the time. So, are you just acquiring those You're just you're doing direct to seller marketing. You're sending
postcards. You're building websites. And that's why, as you said, getting in eliminate all the middle men. Is essentially what you're saying cuz nothing against wholesalers, but they're charging a fee for their service as they
should. It's a business. And I'm paying that fee. So, I don't get the best possible price on that property because me, Dave Meyer, I am not willing to do the direct to seller marketing. I just don't do it. But you are saying by doing
this direct to seller marketing, you're getting 10 grand off every single deal, which is hugely appealing. So maybe, you know, Henry talks about it a lot on the show, but like what what amount of effort does it take you to do this
direct to seller marketing? And what amount of money does it take marketing? >> You know, I don't spend a lot on the marketing. It's more for material like postcards, you know, getting lists
graded, stuff like that, AI to generate lists. And a lot of that stuff you could do very semi cheaply. I mean, postcards, I just put an order in for 500 postcards design them myself. I do a lot of the work myself, actually, is the the
answer. And so I design my postcards, I put all the effort into it, I make the calls, I mail them out, I pay for the stamps. But but in in regard though, only other effort that's there is disposition. It's really just getting
the information, calling the lead, having them call you, introduce partner that could do disposition. So really, my focus is on growth manager for a large company and I'm very busy doing that. And also the
money, but it's risky currently, and wholesaling is actually less risky than >> It is, yeah. >> And and it also gives me the time with that are in travel sports, and if anyone knows anything about travel sports,
>> Take it all your time. >> That's right. >> So just to prove that I mean, Nathan's telling us that this is possible. Like possible prices, these are things that you can absolutely do. We're not going
today, but we have tons of great episodes. Nathan obviously has some good Andy Gill, who was talking about this. Henry talks about it all the time, but absolutely get good deals right now in this current
that you should consider. >> Absolutely. Nathan, one last question on >> Yeah, yeah. So, there's two deals. One of them was a property that I got in Lightfall and it was the property I was
referring to a little bit earlier. It was a four-bedroom house. Uh realtor was trying to sell it $125,000. Already had the drive-by done on this property and I purchased it and uh anyway the price was about $170,000,
$175, which allowed me to immediately purchased it with no money out of >> So, you're just walking into like 50 grand in equity on that? >> Yeah, yeah, like almost 25,000. Yeah, right out the gate and uh it didn't make
any money due to the current rent with the tenant, but in the last 6 months uh I have raised the rent twice. That's that's very not normal, right? But I had to start making money on this property. I was losing about $100 a month and he
was paying 800 and now he's at $1,400. So, now I'm making about $400 net a month after expenses in a period of 6 months with no money out of pocket. should be? >> So, actually it's lower uh than market
out. I I met them when I walked the house and everything and they're good people and they maintain the house. So, I told them $1,400 was 200 less than what he would spend anywhere else and he agreed. And so, I I love them there and
hard-working guy and I didn't want to disrupt his family, but I did let him the problem of being an investor. I let him know I have to make money and this is what I needed to be and he was he was he was able to do that. So, it worked
>> So, clearly you figured this out and these are repeatable things. These are things that really everyone listening to this podcast can go out there and do. just looking for new deals, you're also trying to optimize your business and to
make more out of what you already have, which is the name of the game right now. I mean, I always want to go out and buy more, but there's so many things going on in the market that make it increasingly important to pay attention
to your operations. What are some of the strategies and tactics you're using to already got? >> Sure enough, the business is is I would say one of the top priorities that I had this year and and on my board behind me
is is making sure that my business is running efficiently and that I can maximize cash flow because again, I'm trying to find ways to scale and build. are $311,000 right now and my net cash flow is 112,
four things that I'm going to tell you that I'm doing to kind of short my business will increase my cash flow by almost 30 to 40,000 dollars. That's not a lot of money. >> I mean, like if you think of it that
way, that's the equivalent of buying, you know, five eight more houses. Right? Like he has to Everyone's focused on acquisitions. Like, you know, just make your existing stuff do better and you don't have to take on as much work or
figure out the financing or go out and find the deals. So, I see the motivation >> [laughter] >> I I get it. How are you doing it? really been trying to focus on right now and it was property management, right?
costs lower, which at the time I was paying 12%. >> But, you know, I did move property managers and I saved 4%. So, that you know, right now I'm paying eight on my portfolio and I feel like that's
Louisville marketplace. And so, I saved 4% on $300,000 amount of money. >> How did that conversation go? >> It is a hard discussion in general because it was very hard moving my
properties. Let's be real. It was a major ordeal. And so, it so I I earned [laughter] >> But, that will pay dividends for years. That's 12 grand a year that will compound for for indefinitely.
>> You know, in most things real estate, I talk about this a lot in the show, you get what you pay for. How has the quality of your property management changed, if it has, since moving to a less expensive provider?
some things haven't. I actually feel like they're doing a really good job at 8%. He's a local gentleman has 250 to 300 doors. They're on top of it. So, actually, I feel like I'm getting
a lot for my money at this time. There are some different costs that I'm paying really good job. And in all honesty, and yeah, I do got to do some things outside of it, but at 8% it's worth it to me. And in all honesty with you.
12 grand a year? That little bit of doing stuff. And it sounds like the >> that kind of sounds like a no-brainer to me. So, that I mean, that's a great thing for people to do. Just for our audience listening, audit what you're
know, shop around, comparison shop with everything you do these days, from contractors to insurance to property managers. Henry and I talk about this, the spread between quotes is astronomical these
days. It's insane. That's a 50% difference in property management fee from 8 to 12%, right? You were paying 50% above market rate. And that's market rate. It's not like you're even going to like a low-cost provider. That happens
>> Yeah. >> So, you said you were doing four things. thing you did? >> The second thing is is that even in a market, and so Louisville's kind of been depressed in rents. And I think other
markets may have this scenario happen as well. There's just less people running Louisville's one of those markets. So, I still had a rent increase of 3%. So, on, you know, 23 houses at 3%, that raised me up another, you know, $8,000 a year
right there. We've executed on I think 14 of them and the others have leases those in the fall and they were still all under rented to the market. So, the I'm below it and that will actually give me quite a bit of extra equity and and
capital as well per year. And so, if people they're under, I I always keep mine a little bit under, but you know, the reality of the situation is try to look to raise because rents have to go up. I
going up, liability is going up, people are destroying houses at a much higher why, but they were destroying your houses, so you have to ask for those stout about it. >> Raising rents, obviously, if it the
your business, it's something to consider. But like sometimes the market won't bear it. You know, you can't just say like, oh, my expenses went up 3%, so I'm raising rents 3%. If there's competition in the market and someone
can find an equivalent property without that rent increase, they might go do that. So, like it sounds like though issue. >> Uh pretty much all of them except for
one house is rented at this point. No one moved. Uh one the the rat house is what I call the one that was destroyed. Uh we put a lot of money into it and I tried to rent it at 1150 for a two-bedroom 800 square foot in
Louisville and it's not taking right now. There's a lot of competition and so, I've got it at a thousand fifty and it's still not going. So, that's a hundred dollar drop in this market on two beds in the last I'd say four
months. And yeah, the market the market is not bearing it uh at this point. Rents are dropping in this marketplace. So, I'm being very cognizant of that uh when I'm asking for these rents. But if a tenant does come back to me and they
negotiate, right? I'm more than willing to negotiate uh in between and I generally do that. But we haven't had anyone really leave uh due to that they say, "Hey, look, if you could take $50 off of the $100 that you're raising
it, I'll stay and we'll just accept it." You know, so that's that's something people in there. >> I think it's something for our audience to keep in mind. You have to weigh in this market the risk of vacancy with
the need to keep up with expenses because inflation is pushing up everything, repairs, maintenance, taxes, insurance, everything, right? >> And as a business person, you have to keep pace with that. At the same time
>> [laughter] >> right? Like they don't care that your prices are going up. They have a budget, what they can afford, what they value >> can't That's why you just can't be overly aggressive. You have to find the
sweet spot. 3% seems very reasonable to me. Like that's basically the pace of inflation. So, it's not like crazy. But I sometimes hear people say things like, raise rents 10%." You don't have to. And first of all, you
probably can't. You know, like there is a limit to what you're able to do. So, you need to really think about how much the market can bear. And that can be through conversations with your tenants, talking to other investors, talking to
property managers in your area. But this isn't just something like, "Oh, you know, I should go raise rents cuz I want to." There there is a consideration there. And I think you're doing a very reasonable job with it, Nathan. And what
investors out there. >> Absolutely. What's the third thing you've done to help your business perform better? >> So, I've been focused on paying houses off to increase my my capital that I
could use to buy houses off market and wholesaling and stuff of that nature. have cash. And so, obviously the third thing is trying to find ways to pay off rentals uh quicker. And so, what I've been doing right now, I actually wired
$56,000 to the bank and I'm paying off a property on Lee's Lane that will net me about $600 a month. So, if you do the math on that, that's another $7,200 to $8,000 a year right there to just pay a property off. And generally, what I do
is I target the the ones with the highest mortgage with the lowest cost to math on paying off Lee's Lane, it's going to return right around 10%, which is a really good return. And that's why I'm paying that one off. So, that's the
>> Tell me a little bit about just the strategy here, cuz what you're saying makes sense. Like I agree with this approach entirely. But, at the same time, you've also talked a little bit about how you want
to maximize the money you have for investing, right? And so, where's this conditions? Like you're not seeing enough that you want to buy that So, you right now? >> So, the reason why this makes a lot of
sense for also helping me in investing, say wholesaling or having cash to do that, is because when I pay this house off, immediately, I'm going to add it to my line of credit. So, not only do I get a paid off house that saves me $600 a
month, but I'm also going to put it on my line of credit and get an extra $100,000 in capital added to my line of credit, which would be right around a million dollars at this point once I add that. So, it gives me twofold. It allows
me more purchasing power to not have to crowd fund and just self-fund this myself. But, it also allows me leverage to make money while it sits there as >> Makes a lot sense, and you can always refinance it later if you want to either
>> Exactly. >> Yeah. >> So, that's three out of the four. We talked about your PM costs, you raising rents appropriately, and paying off some rentals. What's the fourth thing you've
>> My main focus this year is to wait for rates to drop in the five and a half range on on either commercial or traditional financing or DSCR like Caliber is a really good company. They do a really good job. And and you could
use companies like that as well. But the thing is if you could refinance your houses, say 23 houses, 10 of them are paid off and I could actually refinance 10 of them and I have so much equity from the
appreciation that's been happening that I could take that appreciation pay off another two or three that are free and clear and still net an extra 100 to 500 dollars a month in cash flow with doing that. That is a huge
proponent to what I'm trying to do right now. And if I do that and I do it smart, and also save probably about a thousand dollars a month on that refinance. And I that. >> Even if the rate's higher?
instance. Yeah, exactly. I think the rates will be in the five and a half to down a point, you should be in the in the realm that you need it, which is >> All right. Well, yeah, if you could buy it down, you're more optimistic than I
fives. [laughter] I'm not I'm not so sure about that. We're at >> [laughter] >> I hope we can get there. We'll see what things that are causing issues in the marketplace right now, but you know, the
goal the goal that I've heard was a one and a half percent fed rate. And so we're at a 3.625 and I'm in the mortgage industry. So this is what I know very well and and so if we're at a 3.625 and we need it at one and a half, I mean if
half, we have to find a way to get that fed rate down. And so they're really focused on that. So I am really, you know, leveraging my gambling hand here to say within the next hopefully 12 to 18 months, right? That's conservative.
>> point, if we could hit six, I think you would see a huge amount of people trying think that would be very smart for them to do that in all honesty with you. that makes a lot of sense to me. We'll just have to see if we can get to that
rate. Maybe 12 to 18 months. I'm I'm I'm I'm not as optimistic this year about >> year is rough. >> Well, Nathan, this has been a lot of fun. Thank you so much for catching us up here. People want to connect with
>> Yeah, I mean obviously you can find me online. It's real estate Nate. Uh buy, sell, rent, coaching is is my business in Louisville, Kentucky. Uh you can find me on social media too under the same exact search term. So I'm on social
media, I'm on LinkedIn, I'm on everything that you could possibly think stuff of that nature. >> Awesome. Well, thanks so much for being here, Nathan. We really appreciate you. And thank you all for listening. Again,
some of the things Nathan was talking about and you're a BiggerPockets Pro member, go to biggerpockets.com/pro and check out the discounted rates we have for you and we've negotiated for you through Kiavi. Also, if you want to
learn more from people like Nathan, make sure to subscribe to the BiggerPockets podcast or follow us on YouTube so you never miss an episode. Thanks again for watching. I'm Dave Meyer and I'll see you guys next time.