Overview of Making $4,000/Month Cash Flow with 10 Rental Properties (In Just 4 Years)
This Real Estate Rookie episode (BiggerPockets) features Alana Lipman, who went from broke and renting to building a 10‑deal / 15‑door portfolio in ~4 years using house hacks, short‑ and mid‑term rentals, flips and mixed‑use investments. The interview covers her origin story, how she funded deals, key deal metrics, tenant‑management lessons (including costly empathy mistakes), and how she balances growth vs. time freedom.
Guest snapshot: Alana Lipman
- Background: full‑time employee at the American Heart Association + bartended nights to fund deals.
- Starting point: age ~28, renting in a fourplex — lightbulb moment while writing a rent check.
- Current scale: ~10 deals, 15 doors across southern Minnesota (Faribault, Owatonna, Austin).
- Contact / projects: Instagram @aspiring_slumlord; writing a book titled Aspiring Slumlord; co-hosting a podcast "Homies and Houses."
Key takeaways
- House hacking can cover your own mortgage — Alana never paid her mortgage on her first duplex.
- Multiple creative funding sources matter: W‑2 income helps with lenders, plus cash from bartending and flipping a camper financed later deals.
- Systems win: strict screening, background checks, calling previous landlords, and verifying pay stubs prevent costly tenant problems.
- Strategy alignment: pick strategies that match your goal (Alana prefers long‑term rentals for passive time freedom; short‑term is profitable but time‑intensive).
- Growth vs. freedom: scale can increase cashflow but may cost time; reassess target net worth / door count for “owning your time.”
Deals & financing — what she actually did
- First property (house‑hack duplex)
- Listed ~$217k; Alana offered $223k, seller paid closing costs.
- Financing: 5% down conventional loan (first‑time buyer program).
- Strategy: lived in one side, furnished and short‑term rented the other (Airbnb → Furnished Finder for traveling nurses). Result: rental income covered mortgage (she never paid the mortgage herself).
- Second house (moved a few doors down)
- Asking ~$169,900; offered $175k with seller closing cost credit.
- Strategy: moved into this house while renting out former unit long‑term (diversified risk — a 12‑month lease).
- Mixed‑use building (best deal to date)
- Sought out owner directly (not listed as a sale initially). Offered $300k vs planned MLS $425k and gave flexible closing dates.
- Structure: 1,700 ft² commercial clinic + upstairs apartment + basement apartment. Mortgage ≈ $2,000/mo covered by upstairs rent ($2,000). Office spaces rented at $500/mo each — cashflow from offices ≈ $2,500/mo — and basement apt at $1,200/mo.
- Triplex (latest purchase)
- Listed ~$199k; offered $200k (seller eventually paid closing).
- Mortgage ≈ $1,340/mo. Unit rents: $1,400, $850, $400 (longstanding tenant on social security). One unit alone covers the mortgage.
- Portfolio metrics
- ~15 doors across 4 structures.
- Projected cashflow (after expenses if nothing goes wrong): ~$48,700/year.
- Closed her 10th deal recently.
Strategies tried and which she’d repeat
- Short‑term rentals: profitable and used early; time‑intensive. Will keep one or two but not scale this as primary strategy.
- Mid‑term rentals: good for slightly higher monthly rents and lower turnover; opportunistic, not primary buy‑box.
- Long‑term rentals: Alana’s preferred core strategy — lower day‑to‑day time drain and consistent cashflow.
- Flips: did a camper flip (bought $5k, sold $10.5k) — useful for quick capital but not a core strategy unless a standout deal appears.
- Mixed‑use/commercial: willing to repeat if numbers and location fit; likes diversification (residential + commercial).
Tenant screening & management lessons (hard lessons)
- Compassion can be costly: Alana housed domestic abuse survivors and long‑term tenants who paid late or damaged units — one tenant left ~$3k damage and flea infestation.
- Changes implemented:
- Strict systems for screening (background checks, credit, income verification).
- Call previous landlords (not current) for unbiased references.
- Verify pay stubs and employment (watch for fake pay stubs and staged verifier numbers).
- Stick to written policies and don’t “make exceptions” even when moved by compassion — treat it like a business.
- Tools & marketing: used Furnished Finder, increased minimum stays, marketed to traveling nurses during COVID surge.
Operations & funding hustle
- Primary funding sources: W‑2 income (stable for lenders), bartending income (saved every dollar in a safe for months), plus creative seller concessions (raising offer to get seller‑paid closing costs).
- Example fast flip: camper bought for $5k, ~$1k materials, flipped to $10.5k in 3 days — proceeds used toward down payment.
- Lender strategy: pre‑approval speed helps — she often moved quickly when opportunities appeared.
Notable quotes
- “There’s always a way to get the financing.”
- “I bought and then figured it out later.”
- “My number one goal is to own my time.”
Practical action checklist (for rookies)
- Clarify your primary goal: cashflow, appreciation, time freedom, or growth.
- Build funding plan: get pre‑approved, keep W‑2 or explain alternative income sources, save (even small flips or side gigs help).
- Look for house hack opportunities (duplexes/hidden ADUs); use seller concessions to reduce cash at closing.
- Implement tenant screening systems now: background checks, previous landlord calls, income verification, and pay‑stub validation.
- Run conservative cashflow models including vacancy, insurance, maintenance, taxes.
- Start local but be open to nearby markets when numbers are compelling.
Where to follow Alana
- Instagram: @aspiring_slumlord
- Book (in progress): Aspiring Slumlord
- Podcast: Homies and Houses
This episode is full of practical examples (offer tactics, seller‑paid closing strategies, exact rent vs. mortgage scenarios) and actionable lessons on screening, financing, and aligning a portfolio with a life goal of time freedom.