"Real Estate Experts Share 6 Ways to Make Money in the Industry"

Letizia Alto and Kenji Asakura, creators of Semi-Retired MD, built a rental property portfolio to achieve financial freedom. They replaced their clinical incomes with real estate cash flow and describe six ways to make money in real estate, including cash flow, appreciation, tax benefits, leverage, forced appreciation, and tax savings. The couple uses a cash-on-cash calculator to select strong cash-flowing properties and focus on positive cash flow.

Letizia Alto and Kenji Asakura, creators of Semi-Retired MD, achieved financial freedom by building a rental property portfolio. Their journey began in 2015 with a clear goal: to replace their clinical incomes with real estate cash flow. They share six main strategies to make money in real estate, including cash flow, appreciation, tax benefits, leverage, forced appreciation, and tax savings. Their approach focuses on positive cash flow and strategic property selection.

Cash Flow

Cash flow is the primary focus for Alto and Asakura. They use a cash-on-cash calculator to ensure properties generate positive cash flow. Before purchasing, they run the numbers twice, involving various team members to confirm costs and projected rents. This rigorous process helps them avoid cash flow-negative or neutral deals.

Debt Paydown

Mortgage payments build equity, and tenants help pay down the mortgage. Alto and Asakura started buying investment properties in 2015, with tenants' rent contributing to their debt paydown.

Forced Appreciation

Forced appreciation involves increasing the property's value by increasing income or decreasing expenses. Alto and Asakura focus on increasing net operating income (NOI) by renting unused spaces or charging back utilities. This strategy has significantly contributed to their net worth growth.

Immediate Appreciation

Immediate appreciation occurs when a property's value increases on the day of purchase. Alto and Asakura capitalize on this by recognizing good deals and negotiating with sellers.

Market Appreciation

While market appreciation cannot be controlled, investing in areas with potential for growth can increase the likelihood of appreciation. Alto and Asakura reside in Puerto Rico but travel six months a year, indicating their understanding of the importance of market appreciation.

Tax Benefits

Tax benefits are a key strategy for Alto and Asakura. They use real estate professional status (REPS) to shelter income and offset their W2 or 1099 income. This allows them to buy more properties and further their financial goals.

Alto and Asakura's approach to real estate investing is a testament to the power of strategic planning and diversification. Their focus on cash flow, debt paydown, forced appreciation, and tax benefits has enabled them to achieve financial freedom.

References

[1] https://www.linkedin.com/pulse/niche-real-estate-investments-where-cash-flow-meets-strategy-wessel-k6e2e

[2] https://www.businessinsider.com/how-to-make-money-from-real-estate-cashflow-financial-independence-2025-6