What I did today
Yet another negative cash flow day. The days where I don’t have any consulting work can really sting. It’s actually a really interesting example of what happens if the income drops to nothing. It’s very possible that scenario could happen, where my consulting income goes away suddenly and I’m in a world of hurt.
So, with no consulting income, I spent the day building passive income: real estate, and websites.
On the real estate side, I had two different agents I’ve worked with in the past pop up. One had a 6 unit deal, one had a 4 unit deal. I think they both are solid “B” deals. Not an A, but not bad at the right price.
The 6 unit, in particular, would be interesting. It’s in a town that has a very low vacancy. However, rents are pretty low. I’d need my property manager to improve the place a bit and then boost up the rents pretty quickly. The goal is always 15% ROI solely from cashflow, not debt repayment, and I think the 6 unit could hit that.
The 4 unit might be able too, and it’s really cheap, but man, that feels like too small for me!
On the website side, I also published a bunch of content today. Today had me publish a total of 5 articles, which hopefully can continue over the next couple months and lead to more visitors after a while.
What I’m thinking about today
I’m thinking about what my risk tolerance is.
Right now, I have a lot of big expenses coming up. I have the downpayment for the 6 unit under contract, the downpayment for the 9 unit under contract, and a big tax bill.
If I were to stay put and do nothing, I can afford all of these AND pay off all of my debt. It would leave me with barely anything left, but I could do it.
That’s definitely the safest option. In case my consulting income goes away, this would protect me and allow me to be fine. I could easily live off of my job, rental income, and things would be great.
But, I don’t think that gets me to $10K/day.
So, I could take the aggressive path where I pay only the monthly minimum, lever up on the real estate. This gets the maximum number of units in the front door, but also means, if the consulting income goes away, that I’d be in a tighter spot.
It’s an interesting comparison set.
I’m going for the riskier option.
This whole case study is built on taking a risk to get to K/day at 30. I don’t think I get there without a measure of risk.
What I made today
Rental Income: $25
Interview Coaching: $0
Affiliate sites (2 sites): $0
Today’s pro-rated amount of monthly expenses
My plan for tomorrow
Tomorrow is another website day until I sell something for consulting!
About the Author & The $0-$10K/Day Case Study
Dean’s goal is to create $10,000/day in passive income through entrepreneurship. Too many people write “success porn” that skates over the struggles many face in entrepreneurship
The hope is that this series of posts will inspire someone else out there to make their entrepreneurship dreams happen.
Dean Woods is currently a VC-backed startup executive by day and a bootstrapped micro-startup CEO by night. Prior to working in startups, Dean was a management consultant. Dean graduated with honors from The Wharton School.