digest
Short Summary
Main recommendation: Set specific annual goals, track them visibly, and adjust them as market conditions change, rather than sticking rigidly to targets. Henry Washington's 2022 results show this in practice: he set a goal of 15 cash-on-cash doors, raised it to 20 after 14 deals fell through, and ended the year with 31 doors added, while his flip goal of 15 houses was not met. He plans to stay aggressive on buy-and-hold in 2023 because current market conditions favor acquiring properties at discounts.
Key Points
- Henry sets roughly five annual goals, two of which are tied to his business: a wealth goal (acquire rental doors at 10%+ cash-on-cash return) and an income goal (flip houses for total sales).
- He writes goals down and posts them in several places (shower, home, computer, office) as constant reminders to keep daily actions aligned.
- His 2022 wealth goal was revised from 15 to 20 doors after about 14 of 14 of the roughly 20 January contracts failed to close due to financing issues or weak returns; the year ended with 31 doors added (3 duplexes, 1 quadplex, 4 single-family homes, and an 11-unit office building).
- His flip goal of 15 houses and $2.3 million in gross sales was missed, with about 10 flips and roughly $800,000 in sales, because rising interest rates made holding more profitable than selling.
- He expects 2023 to favor buy-and-hold: higher rates and lower demand allow deeper discounts on purchases, and he believes property values will likely rise again if and when rates fall and buyer demand returns.
Details Worth Noting
- Concrete instructions: Write down your annual goals and place them where you will see them daily. Set a cash-on-cash return target (Henry uses 10% or more) for rental acquisitions. Re-evaluate deals by digging into the numbers before closing, since one property did not meet the return threshold once analyzed. Revise goals mid-year when deals fall through or market conditions change. Watch local market indicators such as days on market and the list-price-to-sale-price ratio to see how far below list price homes are selling and how long they sit, and use that to inform buying decisions.
- Henry pivoted his strategy in 2022: he kept multi-family properties and sold single-family homes, since the market made singles more valuable as rentals than as flips.
- His proudest achievement was buying an 11-unit commercial office building with a local commercial broker and additional partners, his first commercial deal, which also gave him office space instead of renting one.
- He states the market in 2021 favored flipping at premium prices, while in 2022 and 2023 it favors holding good deals.
- He does not say whether his 2023 targets (20 doors at 10% cash-on-cash, 15 flips, $2.3 million in sales) are realistic for other investors; these are his personal goals.
Bottom Line
Set goals you can see every day, measure them against the market, and be willing to change them. Henry's year shows that a revised target and a shift in strategy can still produce strong results.
