Single Mom Earning $22,000 As a Waitress Turned Tax Refund Into Million Dollar Real Estate Portfolio

When Detroit-based waitress Ashley Hamilton received her tax refund in 2009, she began her real estate journey.

Unfortunately, the banks didn’t issue loans and she didn’t have credit cards to finance her dreams. So Hamilton used her savings and tax refunds to secure a three-bedroom, basement home for $ 6,300.

Every year she bought single-family homes in Detroit, paid for them in cash, performed rehab, and used the lots as properties to buy and rent.

Initially, Hamilton planned to buy a property each year with its annual tax refunds. However, she was able to accelerate her portfolio building goals by saving the rents collected from tenants and later getting access to credit.

The young investor now has a portfolio of 24 rental properties and five vacant lots. According to her Instagram page, 14 of her properties are free and clear. The 14 properties will be paid out and Hamilton will have full ownership of the properties.

“Having no money to my advantage,” Hamilton told the BiggerPockets podcast. “I received a tax return at the end of the year. Since I was only making about $ 20,000 and had two children, I was able to get a refund of $ 5,000 to $ 6,000. ”

With the Detroit real estate market having a low entry point during this period, Hamilton’s tax refunds and savings were enough to get her up and running.

From tax refunds to real estate portfolios

Dreaming of becoming a millionaire by the age of 30, Hamilton knew that real estate investments were a practical way to achieve their goal.

Hamilton often relates how she grew up poor in her family with no entrepreneurs or real estate investors. But her commitment to always finding a way helped her think outside the box. As a single mom with two children, Hamilton understood how real estate investments could get her past her $ 22,000 waitress salary.

She realized that if she could buy 10 properties and sell them for $ 100,000 each, she could become a millionaire. Although Hamilton hadn’t joined the Millionaires Club by 30, she had a portfolio of 10 properties that were paid for in full with her savings and tax refunds.

“I was ready to live like most people don’t because I wanted to be financially free,” says Hamilton, explaining the importance of having time to watch your children grow. “I knew I had to have passive income so I didn’t have to work so much.”

When Ashley bought her first property, she saved money to paint the house, hire a local plumber, and make the place habitable. By buying her property with cash, she was able to eliminate her biggest expense: rent. She saved the money that would have been spent renting to buy her next property.

Your success in real estate investing relies on a simple strategy: buy, repair, rent, refinance, and retry.

Building a massive real estate portfolio from scratch

In February, Hamilton decided to quit her job as a part-time bank clerk and devote herself full-time to entrepreneurship. Even though she had a couple of six figure companies and a million dollar real estate portfolio under her belt, she still chose to work 20 hours a week in order to have a steady source of income for W-2.

“I finally made it. This is overdue. I know a lot of people ask me why I still work there in the first place. But the truth is, I really enjoyed what I did. I also recycled wealth and leveraged a lot last year, ”said Hamilton on Instagram.

She adds, “Most of the time, if you use any of these real estate strategies like Brrrr, House Hack, or Buy and Hold, you will need some type of W-2 income to be approved for credit. That’s why a lot of people get stuck after just a deal or two. I know everyone says they want to hurry up and quit their job. But unfortunately it is not very smart at the beginning. “

Hamilton recommends aspiring real estate investors have a well thought out plan and be prepared if things don’t go as planned. She started her tax refund and eliminated her rental costs. Then she focused on living frugally and continued to use her money to buy real estate with cash. Hamilton is now offering courses to provide others with the resources and information to start with.