The Rental Property FIRE Number Trap

Lucas and Luna unpack a specific FIRE blind spot: rental property math looks great in a spreadsheet but gets demolished by capital expenditures, vacancy cycles, and property management friction. They walk through a concrete example — a $300,000 duplex in a midwest college town — and show how a seemingly safe 10 percent cash-on-cash return can turn into a 3.7 percent real yield after factoring in a roof replacement, a two-month vacancy, and a Section 8 tenant turnover. They also discuss the behavioral trap of treating rental income as passive, and why the FIRE community often overestimates net operating income by 30 percent or more. If you are building a FIRE number around real estate, this episode gives you the adjustment you have not made yet. #FIRE #FinancialIndependence #RentalProperty #RealEstateInvesting #CashOnCashReturn #CapEx #Vacancy #PassiveIncome #NetOperatingIncome #PropertyManagement #FIREPitfall #CollegeTownRental #Duplex #Finance #PersonalFinance #WealthBuilding #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo