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Mike H.

  • Real Estate Investor from Manteno, IL

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Experience

THE FIRST DEAL
Flipped my sister's neighbor's house in 2005.

NEW CONSTRUCTION JUST A TAD TOO LATE
New construction house in 2006/2007
that became my first rental after market crashed and potential profit disappeared.

FIRST BUY AND HOLD
Sept 2008 - my first actual investment property intended to be an investment property.

SLOW AND STEADY WINS THE RACE
After that, I bought about 3 houses per year like clockwork til I hit 19 in June of 2013. Looked like the run of great acquisition pricing was finally over. Those next 5 months with absolutely no prospects and then......

THE RUN OF MY INVESTMENT LIFE
At the end of 2013, I went on a crazy run where I picked up 10 houses in 8 months. In early November of 2013, I picked up 4 houses in 4 weeks. It was crazy.

And then in January, I hit one house a month for the next 6 months. Every deal was better then the next.

I now have 29 properties. 28 of which are occupied. The 29th is still in rehab phase because of a significant water issue that I can't seem to get anybody to do the work on.

My typical deal these days looks like this:
Bdrooms: 3
Bathrooms: 2
Sq footage: 1,500 sq ft,
ARV: 130 to 140k
My all-in number: 90k
Rents:1,300 to 1350
Gross monthly profit: $350 to 450
Out of pocket for the deal: 4 to 7k

Real Estate Goals

My goal is to continue adding more properties to grow my portfolio. And, at some point, to start selling my lesser properties and taking the profits from those and moving it into better/nicer/closer product.

At the end of the day, I think I'm looking for 40 or so houses that are newer, nicer, bigger, and closer. Make the management of them easier for me.

The other issue for me though is that I don't think I'd ever want to stop doing this. Its just too much fun. So even if I won't be adding more properties, I hope to doing flips at some point as well. And maybe new construction.

One of the interesting things with rehabbing properties is that you are able to see a ton of houses and, along the way, you pick up what things are good and what things aren't. Seems like a real good opportunity to make new construction work.

But not until the market changes quite a bit more so the risk isn't as great.....

Currently Seeking

A break. I'm still looking at properties and thankfully, it seems to be another slow summer period here because the bottom line is that I need a break. And, more importantly, I need to replenish my finances.

Although I do pretty well at using hard money to pick up these deals and limit my out of pocket. Bottom line is that I'm still coming out of pocket on these deals.

Need to take the next 4 to 5 months and just use my cash flow to replenish and reset my finances. Hopefully, that should time out just about right for the next wave of winter deals. :-)


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Awards

500 Post Club Profile Complete Popular Poster


Member since June 12, 2009 (last active about 12 hours ago)