$12,500 per Month in 'Pure Cash Flow' With Todd Baldwin | BiggerPockets Podcast 392:

www.biggerpock...
A $1 million net worth before the age of 30... through frugality and creative real estate investing!
That's what Todd Baldwin's achieved in a few short years, riding the red-hot Seattle housing market by repeat house hacking, renting by the bedroom, and living way below his means.
Sure, Todd's benefited from appreciation, but he's also generating monster cash-on-cash returns across his 6 rental properties. And today, you'll learn just how he's doing it: how he finds pocket listings, why he favors new construction, why he pays for a $2,000/month service most landlords would never dream of providing, how he limits roommate drama, and much more.
Wondering if this is legal? We discuss that in detail. Oh, and get this-Todd's all-time vacancy rate? Zero percent. So if you're in a high-priced coastal market, you need to listen to this show. And if you don't, we can pretty much guarantee you'll still enjoy it and pick up a few landlording nuggets along the way.
Know someone who might put Todd's strategy to use? Share this episode with him or her today! And make sure you're subscribed to the show so you won't miss us next week.
Check the full show notes here: www.biggerpock...

[@ToddBaldwin]

Thank you So much for having me on the Podcast! It was an honor to meet you all and a pleasure to talk to you. BiggerPockets is the one stop shop to learn all things real estate. I feel so blessed that I could share my story on your platform!

[@CoachDomCosta]

Appreciate what you shared! Continued blessings!!!

[@worldwideachievers1234]

I knew something was up. I thought man he’s good in front of a camera and boom 💥 you have your own KZbin channel. Nice 👍

[@williamreis4368]

Awesome stuff! Thanks for sharing.

[@jdponce90]

Dude! You got on the BiggerPockets. That's awesome.

[@anjukhattri7371]

Thanks Todd. It really motivates me to get in the realestate. I have one question - how do you take care of the shared kitchen?

[@AlexSanchez2254]

Honored to consider this dude a friend now. Most humble guy I know, great episode Todd and Brandon!

[@sarahpurdum4168]

I invest in real estate in Los Angeles. We are building a three bedroom guest house in our backyard. In our current house we live for free renting three rooms and living on the enclosed patio. Love your story! Got some good tips. Our cleaning lady is the best investment ever. You're the first person I've heard with the same strategy as me! We are following your steps!

[@edb484]

I think it crazy how people so much and how rent is in LA, NY,Seattle. I live in Dallas and can buy a 2000+ sq ft house for a 1 bedroom there lol. I would never want to have roommates with strangers

[@mattofthenorth]

Bonus of having a trusted maid cleaning weekly on a property setup like this is they can keep an eye out for things that could be amiss as far as undetected maintenance needs or potentially criminal activity. Both of which are probably not so likely however given his approach of “preventing problems before they exist” with new construction and creative tenant screening. Money can also be saved from PM because many of the headaches are avoided and self management is much more doable. Nicely done presentation and I wish you guys continued success.

[@MrVHI123]

That's a good point!

[@pastorjohndas9164]

I was thinking the same thing.

[@LashusJourney]

This is my exact strategy, thats how I scale from one unit to 4 rental properties. Love it!

[@kharvey3946]

Thanks for sharing your story it really encouraged me to take the next step in buying a house in renting out the basement I was a little nervous but I think I’m ready now

[@laithfaouri8804]

Brendan and David’s podcast is hands down the best podcast BiggerPockets has. Love you guys you’ve helped me learn so much in the least amount of time.

[@Sehvan.]

”This Podcast is the best in the world and it’s so ironic because I’m just getting ready to purchase my first four-plex (using house hacking) - VA Loan which might possibly be a new build / construction - the four rules to real estate were all touched upon : 1.) Cash Flow 2.) Appreciation 3.) Loan Amortization 4.) Tax Shelter (Depreciation) “”is a big one that is missed” - lowering your tax income Only thing he missed : is asset protection and legal structuring (assuring protection - in/outside) with correct LLC & Land Trust He also touches on - having a partner although she doesn’t have to be on the same wave length ... but the importance of balancing each other out on a set goal. The Kite and the string

[@happylifegrace4674]

I would love to connect and get your input guidance on investing and the number three and four you mentioned..

[@s.cupidAI]

I too plan on using my VA as for a multi family home for my first rental property. I would like to connect with you as well.

[@travisjacobs3]

This is the couple from Millennial money. Watched the Graham Stephan one tho.

[@krillgaming4044]

That’s exactly what I was searching up

[@lakenbanks9426]

Awesome how dedicated you are to the money gang. Laken Banks has some awesome stuff too :)

[@2HEARMEOUT]

I thought he looked familiar!

[@JSRDesign23]

this is the most underrated episode. Bring back Todd for an update. thanks!

[@tordeanrivera7983]

I truly love this podcast. Thank you soooo much.

[@chikenburger]

How would insurance work out for this model? Landlord policy and each tenant has renters?

[@thelovenkitten]

"I'm just a dreamer that never gave up on the dream" Awesome!

[@hammerradiology1470]

I love the vibe between Brandon and David, it made me laugh out loud several times...:)

[@RellPurnellakaCarshowRell]

This was an amazing episode. Loved how he was able to house hack and scale his rental portfolio

[@nonikaallen2030]

I love the kite analogy. Awesome podcast, this is my 3rd time listening to it. I just sold my SFH and I'm heading towards my first multifamily investment thanks to podcasts like these....thanks Bigger Pockets!

[@Dsanayei]

This is exactly what I do in California with my two rentals. I would love to get to where this guy is someday soon!

[@eccomercementoreeryan2264]

How do you limit turnover?

[@miltt8947]

An amazing podcast as always! I know my day is coming for my first rental property. * speaking into the future *

[@mariongreen9065]

That's right!

[@LashusJourney]

You got this

[@reyessuarez4978]

You will make it happen!!

[@Real.Estate.Report]

Currently refinancing my house for the 2nd time this year! 2.875%, 30 year fixed, no closing costs!

[@bipi4363]

Do you mind if I ask what lender you used? Thanks

[@Real.Estate.Report]

@@bipi4363 I use a local mortgage broker. His company is called AnnieMac Home Mortgage

[@bipi4363]

@@Real.Estate.Report Thank you.

[@KillingWithaSmile613]

never even considered this. brilliant stuff. TODD IS IMPRESSIVE!

[@gthree0239]

My wife and I have had discussions of house hacking for a couple years to jump start our real estate investment endeavors. The only problem is we have 3 kids. Makes it a little harder.

[@toddcapota5910]

One of the best episodes I've ever watched. Todd is a genius.

[@chastitygarcia6811]

Curious, and if I missed it let me know...are these tenants month to month leases or year long?

[@brianburke808]

14:58 - I couldn't take notes fast enough. that was gold.

[@charitomattson7787]

Love this episode too, so many information to learn. What's your builder company?

[@larrygarcia9048]

Due to the pandemic all over the world, many are in financial crisis now. So if you want to learn how to earn money from home, you should check out Mr Roberts @robertslarrison on Instagram.. I earned $12,000 within 4 days with an investment capital of $1000. All gratitude to mr Robert @robertslarrison for helping me out of stress of money may God Almighty richly bless you @robertslarrison

[@anjukhattri7371]

This is an awesome video. Thanks for becoming my one more inspiration. I have one question- How do you handle the kitchen shared usage?

[@dianeperez8431]

I hope there will be a BOOK from biggerpockets on this kind of niche! PLS PLS!!

[@tomatobrush3283]

Would like to see more on Todd's properties and how they are laid out.

[@KB_theauthentic]

This guy is a genius - damn "Why didn't I think of this!??" @15:30

[@LashusJourney]

It's not too late

[@reyessuarez4978]

Now you know!

[@anthonylawson7022]

I've been doing this for 3 years in NJ. This is my favorite nice to do in my personal opinion. You can make so much money renting rooms!

[@stevend481]

What city in Nj? Ive been looking there too

[@anthonylawson7022]

@@stevend481 Essex County NJ

[@beforethecutpodcast4330]

Love your podcast! Quick question, how do you guys out this all together? Do you record the the audio, zoom call, and your personal camera in your studio separate then put it all together?

[@nico_gg_8863]

Best podcast I have seen so far guys! Thank you!!

[@cityslickercamp259]

Curious- what percentage of renters would you say are evicted in everyone’s experience?

[@yerkoignacioo]

Very inspiring guys thank you very much

[@LearnHustleGrow]

Fantastic episode! gave me great ideas for Dallas! Thanks guys! I love the way he and the wife thought outside the box in a tough area! We are not quite there yet in our market, but good to know that there is a way!

[@mrchill2441]

Great interview on this show. This tells you again that you can make it in real estate.

[@2dubw134]

Another top notch interview with another real estate stud.

[@jasonsavage2249]

This was a great show.

[@failforwardfast8609]

I literally just found a lot of rentals 1 bed 1 bath apartments in Seattle under 1k. So no I am not seeing the " incredibly high rent in Seattle" love his plan but I would've built multi families. I love his success and love the podcast thank you keep it coming.

[@dhowto3005]

Good information. Thanks!

[@hagriever]

this is called co-living apartments, its prominent in urban parts of major cities like New York, San Francisco and LA. A lot more operators are going towards these style of properties because you can charge 1-1.2K per room for a 5-6 bedroom unit which is more than you would rent the whole house for a 5-6 bedroom that usually comes out less than if you were by the bedroom.

[@AjaMcClahanan]

Bedroom rentals are nice. Even if you do Airbnb with them!

[@kevinsmith-kevcorealtorins2039]

Does Todd furnish the houses in the living areas with dining table, sofa and T.V?

[@danielmills3337]

I want to know that too.

[@howardmontaque8147]

My big question is how do you scale buying new construction?

[@shanebenson1988]

Did he say if these rooms are furnished with a bed? Or do tenants have to bring their own furniture? House hacker here under contract on my 3rd property!

[@OliverGrafTV]

What’s the best way to find out what cities allow this strategy? Thanks!

[@starwreck]

link to website isn't working for me

[@ryzlei]

Thank you BP, you've inspired me to refinance my existing home loan. It's loan refinance process is painful, but when you do the numbers you will save a lot of money in refinancing loans. - From a fan from the Philippines.

[@vivalacarlo]

Nice to see fellow Filipinos watching them too

[@tonydominguez4338]

I love the rich dad poor dad book Awesome Book . Also an old book but the Compound Effect

[@shorttermsage]

Rent by the room! I love it

[@sheritacotten5293]

Charoltte NC has that same model

[@ArupBhanja]

Fabulous interview

[@selinabanda8789]

Gogogogogo, I truly like his style of scaling. Thank you

[@tomatobrush3283]

Renting out by the room or HMO as we call it in the UK is also a great way to house hack if you are getting started.

[@engulfed4372]

Thank you for teaching

[@ron311]

Awesome! What about parking for 6 tenants in 1 house?

[@japhetabbas]

Awesome, really liked that idea

[@nathandytnerski2609]

Curious Todd, do you furnish these places?

[@1.5Koreans0.5American]

392 🔥

[@OscarTorresWork]

@32:02 Yes! If you have time for the next book read look into "Millionaire Next Door" some call that type who like to spend money and look rich "Big hat...No cattle".

[@MTV112]

How does insurance work ??? @ renting rooms

[@pastorjohndas9164]

This is brilliant!

[@jessetek]

What was the app called 14:00? Rent tube? Rent-to? I can't find it. Please help!

[@johnnyfloresiii772]

This is a really great strategy great job 👍

[@barrettgreenjr7115]

salute todd

[@Dludolph90]

I feel like a lot of what this guy is saying could potentially lead to Fair Housing Act. Currently reading Brandon Turners property management book and some of this seems iffy with the boys in this house and girls in that house.

[@1thank2you3]

this is incredible. this is exactly what i wanted to do.

[@mairaasad4220]

Loved all these ideas

[@es7379]

Love the house keeping idea ❤️

[@LashusJourney]

Great story 👏

[@AskDrSusan]

Hey guys! I really would like to share my story with you, And I would really like to do a podcast with you :-)

[@happylifegrace4674]

Hi Suzie, I'm looking to learn how to get into investing my first property and would like the chance to receive any advice and guidance from you.

[@AskDrSusan]

bR z I will be making a video today, a guide to choosing your first income property. Please check my channel this evening or tomorrow for the new video, and then please let me know if you have any additional questions. Thank you!

[@sundesh]

He said he bought his first house using FHA and put it on rent which constitutes investment purpose. Would that be considered mortgage fraud?

[@darkchocolategirl51]

Brandon, what is that saying that you have in the frame behind you. Where the books and plants are. By the way great content.

[@jeffmeler3598]

I just refi at 2.25%

[@failforwardfast8609]

I can't believe how affordable rent is in Seattle. Have you guys even looked? The rent is similar to the ghettos near where I come from THE GHETTOS!

[@mohammedzughayer1831]

Thanks again 🙏🏼 love 💓 cash 💰 flow

[@worldwideachievers1234]

I remember learning about rooming houses with my Carlton Sheets course. Awesome stuff. But what about COVID and having so many tenants per house?

[@darith770]

So?

[@worldwideachievers1234]

XRP so what?

[@boxerboy860]

World Wide Hustlers investors don’t care about trivial stuff like the flu 👍🏾

[@worldwideachievers1234]

Metta HD it’s not what YOU care about but what can have you in court and you’re being sued for everything you own. Knowing the law especially with these new changes upfront will save your business in the end. An ounce of prevention is worth a pound of cure.

[@arthurfonzarelli9828]

@@worldwideachievers1234 you can't sued from getting covid. Quit watching CNN. People have literally millions of bacteria on them. Could never trace it accurately nor prove it. Plus time get on living considering survival rate is now near 99 pct

[@JoshIsOnAMission]

This is so normal to me cause I lived in LA for so long. Everyone lives with strangers and rents a room to someone ha.

[@Siththeblackguy]

This is so smart

[@karenpatterson3726]

How long did they live in each house before they moved.

[@CookingwithMsvee]

Legally you have to stay at least 1 year.

[@montavio]

I was just in Maui! I live on Oahu! The tiki beach hostel seems similar to this method

[@happylifegrace4674]

Hi, I love Hawaii and would like to hear more about the tiki hostel and more about making a living out in Hawaii,tips etc. Thx😀

[@DivaGlamSquad]

I'm on Oahu too! I'll have to check out the tiki when I go to Maui. Let's talk real estate sometime.

[@boxerboy860]

This is the guy I wanna hear from not the one who owns a bunch of property and makes $50-150 off each or breaks even 🤮a grown person needs atleast $3000-$5000 a month to live especially with kids

[@ronthemogul]

Those low monthly cash flow really turns me off. I get it down the line to have property’s but it’s such a risk to be nervous every month for 30 years

[@travisjacobs3]

You put savings for each property.....

[@mikesmith7579]

Evolv23 but still, just $150 a month? maybe the deal could be more a net worth increase by buying undervalued but the single families todd’s buying there is less competition compared to apartment communities and you could buy those undervalued easy too and get cash flow and house hack too

[@boxerboy860]

Mike Smith Lol he obviously has no responsibilities don’t bother

[@Mynameisjoof]

CNBC Millennial Money and Graham Stephan anyone?

[@house2homeplus511]

The kite and line example is perfect

[@carlcuesta2157]

My mind is blown.

[@abrad9724]

great plan if you are wealthy but the average house income is $63,688. they make over 200k a year

[@rehanjawaid8341]

"I don't judge people by the way they dress" next sentence "I have found out that it is easier to trust people based on the way they dress", lol that is textbook definition of judging people by the way they dress

[@CaseyBurnsInvesting]

Yo. I know this guy.

[@HazelnutSantander]

CNBC Millennial Money?

[@huckfin1598]

“CNBC really vets you” And then they had dan billzarian on (with Kevin O’Leary) at his house he rented so they changed the title Great job vetting, CNBC

[@jeannej19]

Awesome

[@boxerboy860]

I don’t agree with the dress thing I mean if a guy meets you in a Lambo with paint stained jeans or a Corsica in a suit his/her business plans should be all that matters

[@jameshill1092]

MEGAZEEN‼️

[@prepinvest]

8 bedroom 😳 How many kids were you all trying to put in this house? Lol But I also thought about doing this!

[@john-wg2vm]

This is great idea when venturing into real estate for the first time but scalability is a huge problem and you'll eventually need to get into traditional multi-families to achieve growth

[@eccomercementoreeryan2264]

How?

[@eccomercementoreeryan2264]

How is it a problem?

[@michaeldamian5750]

Cash flow ..but with big debt

[@arthurfonzarelli9828]

Sell those Seattle properties. The crazies are going ruin you

[@pastorjohndas9164]

LOL... "60 grand a year, like most people do." I'm 47 and make $48,000 at my full time job. :-(

[@marke.8334]

If y'all haven't seen a documentary called... It's worse then you think... By revelations of Jesus Christ ministry... I suggest you do... All praise and glory to the most high Jesus Christ

[@kevinseals1767]

I would really like the useful information that im sure is in here somewhere but i just cant sit thru all the useless chit chat to get the info i want. Bye.

[@JOMOPressureWash]

Looks like you need a little bit of beard oil Beardy Brandon

[@michaelstrang2563]

For some with such a disgustingly haggard looking beard you are really one to talk about appearance lol. I honestly wouldn’t be able to take anyone serious who grew a beard out like that.