How I Built a $350K/Year Passive Income Stream in JUST 3 Years

Episode #873

How much passive income would you need to quit your job? How many rental properties would you have to buy? Most real estate investors think they’d need twenty, thirty, fifty, or a hundred units to finally retire with a six-figure passive income stream, but that could take decades to achieve. So, how do you do it faster? How do you build massive passive income, monstrous cash flow, and find financial independence fast? Follow Kate Lynch’s advice.

Three years ago, Kate was working…a LOT. Seventy-hour work weeks were the norm as she left the house before sunrise and returned well past sunset. Her family time was non-existent, moments with her kids were only reserved for the weekends, and her job controlled every aspect of her life. And while she was getting compensated fairly for the work she was putting in, watching her family time fly by was too much of a burden to bear. So, a rental property portfolio became the goal.

Kate bought in a completely unconventional area for her strategy, focusing entirely on cash flow, not caring much about equity, and doing whatever she could to replace her outrageous W2 income. Now, just three years later, she’s financially free, and if you follow her steps and only make a THIRD of what she’s making, you will be too!

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00:00 Intro

00:49 Working 70+ Hour Weeks!

03:56 All Work, No Family Time

10:48 Trading Retirement $$$ for Real Estate

14:03 Making $50K/Year with ONE Property

21:29 Kate's MASSIVE Cash Flow

26:47 Financial Independence in Under 3 Years!

32:03 SG: Long-Term vs. Short-Term Rentals

[BrettMaverick]

There you have it guys, just take your 1 Million dollars, go back to 2019 and buy 7 properties with 3% interest rates. Anyone can do it!

[DarElBarka]

I'm a senior software engineer who is sick and tired of working with computers 390 days a year. This is the video i needed.

[mybeloved]

She is on it!!!! I love how well she's able to explain it all. Great job and congratulations 🎉

[rozetaavetisyan]

Great interview! Can you please interview someone who has bought a property very recently and is still in the weeds of the process for us to get a an idea about the challenges in the current market?

[ldavidson]

This is a great story :)
I have my Airbnbs in Toledo, a couple of hours from Cleveland. I get a similar return because property is soooo affordable in Ohio. My biggest house is in the most desirable neighborhood within the Toledo borders among the most valuable homes, and it's probably the busiest STR in Toledo. I bought it for $174, 000 5 years ago.
However, I don't "renovate" or remodel. I update fixtures, paint, wallpaper accent walls, and decorate uniquely in keeping with the home's charm. Lots of DIY, some handyman help, electrical and plumbing all pros, used high-quality furniture; $10, 000 budget for set ups.
Many people rent my homes to visit their family, weddings, funerals, graduations, holidays, etc. I also get bookings for university events, concerts, marathons, golf events, hospital visits... and work related -nursing, construction, auto and energy industry, etc. You can stay busy without a nearby major attraction.

[kateribeiro]

Awesome video! She’s so articulate. Great message for working mom’s. She’s also a rockstar with financial analysis and sticking to a strong ROI!

[jaclynshawmsbisii]

She is awesome! Thank you for sharing your wisdom, Kate!

[srchulo]

This is the first episode I've really really enjoyed in a long time. Good guest!

[nab]

Fantastic interview. Would be great to have more investors in similar scenarios. Many can relate

[qhylrnc]

I really like the painting in the background. Do anyone know where i can get it or something like it?

[sophiasavanna]

Her story is so interesting and I would have luved to hear even more about her investment banking stories

[ndspringswellness]

Great episode! Certainly helps to start with 1mil and huge salary, but I also question her numbers. Property taxes in Cleveland are quite high for example (2+% in some areas). I guess as long as her occupancy remains solid it will work, but if there's a hiccup in the Airbnb model it could be a big challenge for the model. Thanks for the episode, very thought provoking.

[cBlessedHealth]

I love her perspective. She already knows how to do hard things, what real stress is like. She doesn’t sweat the small stuff.

[alexjbriiones]

Wonderful podcast. Just want I need it. Not having IM in the bank - should not be - an impediment to starting your own $350K short-term rental business because you can borrow the money from a hard money lender, refinance, and then make the payments from the $50K income per triplex.

[getinthespace]

Nice. I'm building a house this year in a tourist trappy market.
I'll have the option of selling it after 2 years of living in it and making $500k profit tax-free by selling my primary residence, or I could make $40k-60k a season on short-term rentals.
I'm thinking of building 2 houses and selling them to build a million dollars cash to invest. Then, I'd switch to building rentals. If I build 5 smaller rental houses, they could cost $200k and be worth over $500k each, but bring in $40k a season from each place.
Debt free.
We'll see how it goes. I think I could make more money faster by just building and selling.
Also has lower tax and legal liability.

[Wisdomseeker]

Incredible woman! So sharp doing investment banking, being a mother to 3 kids, and picking up on real estate so quick and analytically! Wow just wow. True representation of what women are capable of!

[A_bou]

Very insightful episode and wonderful guest! She was so detailed in her plan and her execution resulted in pure success. I love her intent to make the same yearly salary as she was switching into the real estate path. This is a great method and very helpful to hear for the 9-5ers. It seems daunting to switch gears and make the same salary but she’s proof that it is possible. I am saving this episode. Thank you!

[chris]

Very inspiring video -- I have 4 younger sisters with high W2 income 300k-650k+ (Doctor, SVP, Investment Banking, and Managing Director). Thank you for sharing your story.

[amymitchell]

Loved this episode so much I listened twice. Liquidating my 401k is something I’ve also considered, but of course I don’t have a million dollars invested in it. I’m also going to give Cleveland a second look now!

[lipsydelgadomaza]

This was one of the best podcast EVER! Thanks David, Rob, & Kate!