Client Case Study: Rentvesting
Client Overview
- Names: George and Daphne
- Commenced as clients: 2024
- Combined Household Income: $180,000 (with projected annual wage growth of 2.5%)
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Primary Financial Goals:
- Build a property portfolio of 4 properties within 5 years.
- Generate $900 per week in passive income.
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Option to either continue growing the portfolio for another 10 years or cash out with $2.3 million in net wealth by the end of year 5.
- Build a property portfolio of 4 properties within 5 years.
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Lifestyle Goals:
- Annual holiday budget of $5,000 (with a preference for London trips using points).
- Maintain a household cash reserve buffer of $15,000–$20,000.
- Save for future education expenses of $5,000 annually starting 2027.
- Trade in their vehicle in 2030 for $35,000.
- Purchase a family home in the $1.6–$1.8 million range in a prime school catchment area.
- Annual holiday budget of $5,000 (with a preference for London trips using points).
Initial Challenges
Before partnering with Ramsey Property Wealth, George and Daphne faced several obstacles:
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Missed opportunities: They had already missed out on two potential properties, which left them concerned about timing and
competition in the market.
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Balancing goals: They wanted to invest aggressively but also ensure they could continue funding their lifestyle priorities
like travel, education, and future home ownership.
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Structuring strategy: They needed expert guidance on whether to buy an apartment as a short-term home or pursue a
rentvesting strategy to maximize long-term wealth creation.
- Risk management: Ensuring a financial buffer, factoring in future expenses, and protecting their income through insurance were all key considerations.
Our Strategic Approach
We developed a tailored plan to help George and Daphne achieve their ambitious goals while protecting their lifestyle priorities.
1. Clear Goal Alignment
We worked closely with George and Daphne to define their non-negotiables: annual holidays, cash reserves, and planning for education costs. This ensured the strategy was grounded in both wealth creation and lifestyle preservation.
2. Rentvesting Strategy
After reviewing two scenarios, buying an apartment versus rentvesting, the rentvesting approach was chosen. This provided higher passive income potential, stronger cash flow, and faster accumulation of assets.
- Scenario 1 (Apartment Purchase): By year 10, projected net wealth = $1.1M, passive income = $2,800/year.
- Scenario 2 (Rentvesting): By year 10, projected net wealth = $860K, passive income = $14K/year.
The rentvesting approach also aligned better with their plan to purchase a family home in 5–7 years.
3. Securing the First Investment Property
After missing out on two properties, RPW secured a rare NSW established duplex in a high-growth, high-rental-demand regional area.
- Property details: 6 bedrooms across 2 dwellings.
- Rental yield: $750 per week.
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Impact: Provided an exceptionally strong start to their portfolio with dual-income potential and strong long-term growth
prospects.
4. Cash Flow & Risk Management
RPW structured a strategy that incorporated:
- A $15k–$20k cash reserve buffer.
- Education expenses of $5,000 annually starting 2027.
- Insurance reviews to ensure income protection and long-term security.
- An accelerated debt repayment strategy to increase future borrowing capacity.
The Results
Results & achievements so far for George & Daphne:
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Portfolio kickstart: Secured a dual-income property that generates $750 per week in rent, establishing strong initial
momentum.
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Confidence restored: After missing out on earlier opportunities, the duplex validated their strategy and set a clear
pathway to achieving their five-year target.
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Lifestyle safeguarded: Their plan ensures travel, education expenses, and future car and home goals are fully accounted
for.
- Dedicated and tracked path to wealth: They are firmly on track to achieve $900/week in passive income within five years, with the option to hold for long-term growth toward $120k–$150k annual passive income in retirement.
The Key to Building Wealth with Confidence
George and Daphne’s journey shows how a clear strategy, persistence, and expert guidance can turn missed opportunities into big wins. By partnering with Ramsey, they are not only building a property portfolio but also creating flexibility and choice in their financial future- whether that’s continuing to grow their assets or cashing out with $2.3 million in net wealth. Ramsey’s holistic approach, balancing cash flow, debt strategy, and lifestyle priorities, has given George and Daphne the confidence to invest with clarity and peace of mind.