A few years into her accounting career, Carolyn Yu began thinking seriously about financial independence.
“I’d feel very stressed and tired,” Yu, who was working at a Big Four firm at the time, told Business Insider. “I thought, maybe someday I could have more freedom and not spend 24/7 working at a very demanding job.”
She picked up “Rich Dad, Poor Dad” and started listening to the popular real estate podcast, BiggerPockets. One takeaway stood out: focus on buying assets that can grow in value.
Yu, who’d been consistently investing in the stock market since college, felt compelled to make a move. In late 2024, she drained about half her stock portfolio in order to pay cash for a two-bedroom, two-bathroom condo in Fort Worth, Texas.
The Bay Area-based Gen Zer had been eyeing Texas in part for its tax advantages, including the absence of state income tax. She considered other Texas markets, but Fort Worth stood out for its affordability and growth potential.
“The population growth, the crime rate, the property value growth — they all looked good to me,” she said.
She flew to Fort Worth, toured the condo, signed a contract the next day, and closed within a month. Yu intentionally kept her first purchase under $100,000, unsure whether she had the capital or experience to take on something larger.
“Pretty much 50% of my stock portfolio was gone,” she said. But the drawdown didn’t faze her. “I knew that $80,000 transitioned into another investment.”
Scaling to 5 properties in 2 years by recycling capital
Yu grew her portfolio by reinvesting equity from one property into the next.
Her strategy centers on buying below market value, improving the property, allowing it to appreciate, and then tapping into the built-up equity to help finance another purchase.
As her portfolio expanded, her financing evolved. She moved from paying all cash for her first condo to using conventional loans and later DSCR (debt service coverage ratio) loans, which are designed for investors and rely heavily on a property’s cash flow.
Her second purchase was a two-bedroom, one-bath single-family home. She bought it in June 2025 for about $105,000, putting down 25%. After investing about $50,000 in renovations, she said the home appraised at $195,000 and rented for $1,500 a month.
“This property allowed me to execute the BRRRR strategy successfully,” she said, referring to buy, rehab, rent, refinance, repeat. She said she was able to pull out about 70% of the appraised value to help fund her next purchases.
Within about two years of buying her first condo, Yu had a five-property portfolio. Her first three are cash-flowing, while her fourth is currently listed for rent, and her fifth is being prepared for tenants. Business Insider reviewed mortgage documents to confirm ownership and lease agreements to verify rental rates.
Courtesy of Carolyn Yu
One of the challenges she’s faced since buying property has been vacancy.
She purchased her first condo in late 2024 — “probably the worst time to rent because of winter vacancy,” she said — and it sat empty for six months. She eventually lowered the asking rent by about $100 a month before securing a tenant.
The vacancy was stressful, but manageable because she had paid cash and didn’t carry a mortgage. Still, she owed about $600 a month in HOA dues.
Her advice to other investors: keep at least six months of reserves, know your numbers inside and out, and expect vacancies and repairs.
Why she prefers real estate to stocks
Yu still invests in stocks, but said she prefers real estate because it feels more controllable and scalable. In addition to generating a few thousand dollars a month in rental income, she’s also building equity in her properties.
“Real estate gave me more control, more tangible assets, more tax efficiency,” she said, pointing to depreciation, mortgage interest deductions, and the ability to refinance without selling. She also enjoys negotiating deals.
She funnels most of her rental income back into her stock portfolio. Her end goal is financial independence and work flexibility.
Yu wants to own at least eight properties by 2027 and have her portfolio appraised at roughly $2 million. By then, she hopes rental income will cover her expenses and provide enough cushion to leave her W-2 job, so she can focus solely on her real estate business.
She’s also changed how she thinks about spending. Early in her career, she said she coped with work stress by traveling frequently. Now, she prioritizes investing over lifestyle upgrades.
“I would rather put my money into investments right now in exchange for vacations in the future,” she said. “I think it’s totally worth it because I think in two years, I could be financially free.”
