What I Learned Comparing 3 Rentals to Mortgage Notes(Spoiler: Only One Actually Cash Flowed)
- Hananda Whittingham
- Jul 10
- 2 min read
"I Had $100K to Invest…"
And like many women looking to build passive income, I thought,
“Should I buy a rental?”
So I ran the numbers.
The Reality Check – 3 Rentals (Duplexes), ZERO Cash Flow
I looked at three duplexes in a popular Texas market, 👋Hey New Braunfels 😎 !
They ranged from $415K to $580K, with rent estimates that looked promising... on paper.
When I plugged in the REAL numbers—mortgage, taxes, insurance, and basic maintenance—
not one of them cash flowed.
Even before I accounted for unexpected repairs or tenant turnover.
And that’s not theory—
I’ve lived the reality of collecting rent checks while shelling out thousands in repairs.
(One of my rentals cost me nearly an UNEXPECTED $10,000 in the first 90 days.)
One thing was clear:
Owning the property doesn’t guarantee income.
Where Else Could I Put My $100K Instead?
I was already investing in notes—so of course I ran those numbers too.
That same $100,000 could buy me two performing mortgage notes:
One note was $42K
The other was $57K
Both could start generating income within three to six weeks
Combined monthly income: $1,200–$1,400
✅ The loans were already active
✅ Payments were already coming in
✅ Each one was backed by real estate
And there were no tenants.
No 2 a.m. maintenance calls.
No property manager siphoning my returns.
Just clean, quiet cash flow—month after month.
Why Collect the Mortgage VS. Pay One?
Here’s the mindset shift that changes everything:
You’re not “loaning money.”
You’re buying the right to collect monthly mortgage payments from an already-established loan.
The borrower is paying down their mortgage. Lending Tree says there are 85.78 million residential mortgages in the US. Borrower's paying down loans is NORMAL.
You hold the note.
You’re the bank.
And in real estate?
The bank gets paid first.
Banks are not wishful thinking, unlike many rent projections.
We're talking about consistent income backed by real collateral—without owning the property.
There Is a Better Way
Real estate can build wealth—but becoming a landlord isn’t the only (or smartest) path.
I created Guided Growth for women who want to invest in notes with ease, clarity, and peace of mind.
No courses. No guesswork. No overwhelm.
You invest with me.
I handle the details.
You receive a monthly paycheck—like clockwork.
💬 Comment the word GROWTH for a real deal breakdown.
Or take the quiz to find out if note investing fits your goals and lifestyle.
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