Case Study:
Average Monthly Cash Flow (Net): $22,000+
Financing Mix:
- 4 properties purchased with traditional financing
- 16 acquired using creative financing + OPM
- Acquisition History
Phase 1: Initial Properties (2019)
Property #1 – STR, Orange County, NY
Purchase Price: $32,000 (all cash)
Occupancy: 68% annually
Average Annual Tax & Insurance: $3,400
Net Monthly Cash Flow: ~$1250/month
Net Annual Cash Flow: ~$15,000
Property #2 – Conventional Mortgage
Purchase Price: $405,000
Down Payment: 10%
Interest Rate: 3.2%, 30-year mortgage
Monthly Payment (including taxes & insurance): $2,800
Net Monthly Cash Flow: ~$420
Property #3 – Conventional Mortgage
Purchase Price: $148,000
Down Payment: 5%
Interest Rate: 4.5%, 30-year mortgage
Monthly Payment (including taxes, insurance, cleaning fees): $875
Net Monthly Cash Flow: ~$311
Property #4 – FHA Loan
Purchase Price: $370,000
Down Payment: 5%
Interest Rate: 6.8%, 30-year mortgage
Monthly Payment (including taxes, insurance, cleaning): $3,100
Net Monthly Cash Flow: ~$320
Phase 2: Creative Financing & OPM (Properties 5–21)
From Property 5 onward, acquisitions relied on creative financing strategies:
- Subject-to existing mortgages
- Seller financing
- Private capital partnerships (equity participation agreements)
Rehab budgets: $15,000–$70,000 per property
Geographic distribution:
TN: 1 STR
GA: 4 (3 LTR, 1 STR)
NJ: 2 LTR
NY: 5 (1 personally owned, 4 STR)
FL: 7 (1 personally owned, 3 STR, 3 LTR)
PA: 2 (1 STR, 1 LTR)
Lender
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Pros
Cons
Laura's Notes
Kiavi (formerly LendingHome)
Streamlined process, pre-approval in minutes, competitive rates for experienced investors.
New investors might face higher rates; limited to certain markets.
Great for investors looking for fix-and-flip or rental property loans.
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Pros
Cons
Laura's Notes
Do Hard Money
100% financing for qualified deals, no credit score requirements
Stringent deal qualifications; higher rates for inexperienced investors.
Offers rehab loans and great educational resources.
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Pros
Cons
Anchor Loans
Fast funding (often within 5-10 days), experience in high-value loans.
Focuses on experienced investors; requires substantial down payments for new investors.
Known for fix-and-flip loans and excellent customer service.
Laura's Notes
Lender
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Pros
Cons
RCN Capital
Flexible terms, offers loans for short-term and long-term rental properties.
Application and underwriting process may take longer compared to peers.
Good mix of fix-and-flip and rental property loans with competitive terms.
Laura's Notes
From September 2019 to March 2024, Joseph & Laura Navaquin strategically built a 21-property real estate portfolio across six states (NY, NJ, PA, FL, GA, TN) leveraging a combination of traditional financing, creative financing, and Other People’s Money (OPM) structuring. The portfolio includes 10 short-term rentals (STR), 9 long-term rentals (LTR), and 2 personally owned properties.
A more detailed list and explanation are available on desktop view.
Lenders marked with ** are partners we have actually worked with and taken loans from for projects/deals.
Capital Stack Structure
Each property’s acquisition included a structured capital stack to maximize cash flow and reduce personal capital outlay:
- Existing mortgage retention (Subject-to)
- OPM for closing and rehab costs
- Equity participation agreements with partners
Conservative leverage to maintain <75% debt-to-asset ratio
- Monthly Recurring Revenue: $22,000+
- Total Portfolio Value: ~$7M
- Average Cash Flow per Door: ~$1,050/month
Projected 5-Year Portfolio Equity (Conservative Growth 4%/year): ~$9.2M
Lessons Learned / Institutional Insights
Creative financing + OPM enables accelerated portfolio scaling without over-leveraging personal capital.
Diversified geography and property types reduce exposure to local market cycles.
Cash-flow modeling with conservative assumptions ensures portfolio sustainability.
Equity participation agreements align partner incentives with portfolio growth.
STR vs LTR mix enhances both monthly income and long-term equity growth.
Recommended Next Steps for Brokers / Investors
- Implement structured capital stack planning for scaling portfolios.
- Leverage subject-to and seller financing for creative acquisition.
- Track monthly cash flows by property type and financing structure.
- Maintain detailed equity projections for long-term planning.
- Use recurring income streams to reduce personal income volatility.
Structured training for agents and investors seeking to acquire cash-flowing properties without relying exclusively on traditional bank qualification. Includes underwriting frameworks, capital stack modeling, subject-to structuring, and equity participation agreements.
The following pathways are available for those ready to move from theory to execution.
For professionals seeking deal flow, contractor referrals, capital alignment, accountability, and strategic collaboration across markets.
The Real Estate Hive community supports:
• Off-market property sourcing
• Creative financing structuring
• OPM relationship building
• Contractor & vendor referrals
• Portfolio scaling strategy
• Income diversification planning
