Just purchased first property (Quadplex!)
Investor · Warner Robins, GA · Member since 2015 · 1k+ posts · 490 votes
After months of frustrating exchanges between the agent, seller and I. I have finally closed on my first property. I'm 21 years old and am very excited to begin my journey into real estate.
Give me 10 years and I'll have over 300 units.
Love it man !! Starting with the quad really speeds up your snowball effect exponentially when starting out plus starting at 21 is great, sky's the limit.
I really took to your post as we are in a similar situation. Purchased a quad as my first property several months ago. I'm not "house hacking" the property but just getting started as well with a quad. Would love to stay in touch and watch our business/investments grow while challenging and motivating each other !! the only problem is I'm 28 so you will have a few years on me when we both retire in 10 or 15 years !! ha
That's fantastic, @Rosston Smith!
Heck yeah thats the idea! How has your quad been going so far and what sort of things have you learned? Was it as hard as you expected? What is your plan for your next property?
Absolutely lets definitely connect and keep in touch! I'll be on the site daily and interacting with everyone here. Hey man 28 is still better than later! My plan is 7 figures by 30. Utilizing real estate, debt ,and other means.
How to answer that...
I would say doing good so far, I still have that over excitement level from the potential hold RE offers. So most things that have came up i'm just like o'well. I would honestly say the biggest surprise so far is the lack of calls. You always hear of that tenant that calls you 2 or 3 times a week so was expecting more along those lines. Mine are on the lower end of the spectrum. You hear different theory's on whether low end rentals product more or less phone calls, but I think it overwhelmingly comes down to the tenants personality. They virtually never called for anything.
I'll start off with saying I purchased the quad with the tenants already in place. I purchased from an a local investor/mentor and all but one of the tenants had been there for 5+ years. Long story short one tenant purchased a home and moved out, and the other one is gone for good. Policed knocked down the door and arrested him. I never heard a word until several days later when another tenant called and asked me about it. So that was a learning experience to say the least.
I'm looking at hiring a local Property Management team. The cash flow of the property is great so it works. I know starting out every penny would be better spent re-investing instead of paying a PM but working full time, I would rather spend my time looking for the next deal and I'm not as handy as a thought I was haha !! I'm still playing with the numbers on rather or not to hire one but def leaning toward it. I would say purchasing the quad first is the only way I would be able to do that so very grateful for that.
My plan is to simply save up for the next down payment. The investor I bought these from still has 20+ SFH and is older and wanting to sell them off, and as my "mentor" he would love to sell them to me. I'll probably cherry pick the ones I want. With the quad he is carrying the note at 0% interest for 6 years. Even at 72 Months it cash flows about 750 a month. So i will more than likely try and get the same deal on my next purchase from him and perhaps purchase a package deal of 2 or 3 within the next 6 to 12 months... depending on how the PM team goes and how much cash I can have saved up. I keep my W-2 and business money COMLETELY separate. So there is no additional money going to the business other than cash flow from profits monthly. With that being said when 12 months comes and i'm short on a down payment I have a little money stashed that I would be willing to use.
so to answer your question in short was it has hard as I thought... no not at all, its great !!!
7 figures by 30 sounds great and your on your way, i'll shoot for 35 lol !!
Congratulations! REI is very rewarding.
That's fantastic, @Rosston Smith!
Thanks! I appreciate the support!
Heck yeah thats the idea! How has your quad been going so far and what sort of things have you learned? Was it as hard as you expected? What is your plan for your next property?
Absolutely lets definitely connect and keep in touch! I'll be on the site daily and interacting with everyone here. Hey man 28 is still better than later! My plan is 7 figures by 30. Utilizing real estate, debt ,and other means.
How to answer that...
I would say doing good so far, I still have that over excitement level from the potential hold RE offers. So most things that have came up i'm just like o'well. I would honestly say the biggest surprise so far is the lack of calls. You always hear of that tenant that calls you 2 or 3 times a week so was expecting more along those lines. Mine are on the lower end of the spectrum. You hear different theory's on whether low end rentals product more or less phone calls, but I think it overwhelmingly comes down to the tenants personality. They virtually never called for anything.
I'll start off with saying I purchased the quad with the tenants already in place. I purchased from an a local investor/mentor and all but one of the tenants had been there for 5+ years. Long story short one tenant purchased a home and moved out, and the other one is gone for good. Policed knocked down the door and arrested him. I never heard a word until several days later when another tenant called and asked me about it. So that was a learning experience to say the least.
I'm looking at hiring a local Property Management team. The cash flow of the property is great so it works. I know starting out every penny would be better spent re-investing instead of paying a PM but working full time, I would rather spend my time looking for the next deal and I'm not as handy as a thought I was haha !! I'm still playing with the numbers on rather or not to hire one but def leaning toward it. I would say purchasing the quad first is the only way I would be able to do that so very grateful for that.
My plan is to simply save up for the next down payment. The investor I bought these from still has 20+ SFH and is older and wanting to sell them off, and as my "mentor" he would love to sell them to me. I'll probably cherry pick the ones I want. With the quad he is carrying the note at 0% interest for 6 years. Even at 72 Months it cash flows about 750 a month. So i will more than likely try and get the same deal on my next purchase from him and perhaps purchase a package deal of 2 or 3 within the next 6 to 12 months... depending on how the PM team goes and how much cash I can have saved up. I keep my W-2 and business money COMLETELY separate. So there is no additional money going to the business other than cash flow from profits monthly. With that being said when 12 months comes and i'm short on a down payment I have a little money stashed that I would be willing to use.
so to answer your question in short was it has hard as I thought... no not at all, its great !!!
7 figures by 30 sounds great and your on your way, i'll shoot for 35 lol !!
Hahaha wow! That's a great information. I see you've had some very fun experiences so far regarding your quad! I've been here two weeks so far and have only one call regarding a lockout of the unit.
I think its funny you say you inherited your tenants - I did as well! All of my three spare units are currently occupied. They've been there for 1 year, 3 years, and 7 years. I'm actually a bit relieved as the one thats been here 7 years paid promptly and immediately.
It is very advantageous that you have a mentor already who can assist you with acquiring deals. That will definitely help springboard your journey.
So are you only using your business money to pay for your acquisition of more properties? I would think you'd want to accelerate your journey by incorporating your W-2 income.
Thanks for the summary man! Thats honestly exactly how I picture my first year here. I'm not as handy as I would like to be, but I am certainly learning as much as a can as i go along. My father is also very handy and in the event i need more professional insight he is very willing to assist me. He also owns multiple SF rentals.
LETS DO IT MAN!!!!
Congratulations! REI is very rewarding.
Thanks man I'm looking forward to reaping the benefits.
Congrats, Rosston!!! I plan to follow in your footsteps and buy a four-plex in the near future. We just closed on a SFR which is our primary home with an FHA loan so the plan is to live here a year and then rent this place and move into one of the units of the four-plex. I know you have not posted any numbers yet, but I was wondering if you used any type of deal analysis/rental property calculator similar to the one here on BP?
Thanks.
WOW how inspirational.....CONGRATULATIONS on your first. May God's Blessings continue
WOW How inspirational....Congratulations !!!!!! May Gods Blessings continue mightily
Heck yeah thats the idea! How has your quad been going so far and what sort of things have you learned? Was it as hard as you expected? What is your plan for your next property?
Absolutely lets definitely connect and keep in touch! I'll be on the site daily and interacting with everyone here. Hey man 28 is still better than later! My plan is 7 figures by 30. Utilizing real estate, debt ,and other means.
How to answer that...
I would say doing good so far, I still have that over excitement level from the potential hold RE offers. So most things that have came up i'm just like o'well. I would honestly say the biggest surprise so far is the lack of calls. You always hear of that tenant that calls you 2 or 3 times a week so was expecting more along those lines. Mine are on the lower end of the spectrum. You hear different theory's on whether low end rentals product more or less phone calls, but I think it overwhelmingly comes down to the tenants personality. They virtually never called for anything.
I'll start off with saying I purchased the quad with the tenants already in place. I purchased from an a local investor/mentor and all but one of the tenants had been there for 5+ years. Long story short one tenant purchased a home and moved out, and the other one is gone for good. Policed knocked down the door and arrested him. I never heard a word until several days later when another tenant called and asked me about it. So that was a learning experience to say the least.
I'm looking at hiring a local Property Management team. The cash flow of the property is great so it works. I know starting out every penny would be better spent re-investing instead of paying a PM but working full time, I would rather spend my time looking for the next deal and I'm not as handy as a thought I was haha !! I'm still playing with the numbers on rather or not to hire one but def leaning toward it. I would say purchasing the quad first is the only way I would be able to do that so very grateful for that.
My plan is to simply save up for the next down payment. The investor I bought these from still has 20+ SFH and is older and wanting to sell them off, and as my "mentor" he would love to sell them to me. I'll probably cherry pick the ones I want. With the quad he is carrying the note at 0% interest for 6 years. Even at 72 Months it cash flows about 750 a month. So i will more than likely try and get the same deal on my next purchase from him and perhaps purchase a package deal of 2 or 3 within the next 6 to 12 months... depending on how the PM team goes and how much cash I can have saved up. I keep my W-2 and business money COMLETELY separate. So there is no additional money going to the business other than cash flow from profits monthly. With that being said when 12 months comes and i'm short on a down payment I have a little money stashed that I would be willing to use.
so to answer your question in short was it has hard as I thought... no not at all, its great !!!
7 figures by 30 sounds great and your on your way, i'll shoot for 35 lol !!
Hahaha wow! That's a great information. I see you've had some very fun experiences so far regarding your quad! I've been here two weeks so far and have only one call regarding a lockout of the unit.
I think its funny you say you inherited your tenants - I did as well! All of my three spare units are currently occupied. They've been there for 1 year, 3 years, and 7 years. I'm actually a bit relieved as the one thats been here 7 years paid promptly and immediately.
It is very advantageous that you have a mentor already who can assist you with acquiring deals. That will definitely help springboard your journey.
So are you only using your business money to pay for your acquisition of more properties? I would think you'd want to accelerate your journey by incorporating your W-2 income.
Thanks for the summary man! Thats honestly exactly how I picture my first year here. I'm not as handy as I would like to be, but I am certainly learning as much as a can as i go along. My father is also very handy and in the event i need more professional insight he is very willing to assist me. He also owns multiple SF rentals.
LETS DO IT MAN!!!!
Its funny you say that about your dad, my dad can do anything with a house. So I planned on learning from him and doing the same. So I love and agree with your plan and that was ideal ! With my family dynamic he is pretty tied up with my brother and sister so its worth it to me to hire out. Plus when we are able to work on things he is so so slow haha.. extremely thorough but i'm trying to grow a 7 figure business so any down time drives me crazy. That's also big time that your dad has SF's. Major information and advice to help save or limit mistakes, early on especially !
yeah I know your exactly right with my W-2 job really helping speed everything up. To be completely honest I had to sell it to my wife that way. She is a dental hygienist and makes great money but is currently still paying off her student loans. She was like our budget is great right now don't mess it up !!! She doesn't really desire more money but loves the idea of passive income and not working as much especially once we have kids. It also help after seeing that "easy" 1750 in cash come in each month in the business account. When the time comes for a down payment she'll be ready !!
10 doors by 30 has been my goal over the last year. The vacancies have put me behind a little bit but if i can buy 3 in the early part of next year. Then ill need another 3 before February of 2017. !!! might be a stretch goal but i'm going for it.
Congrats on your first property, @Rosston Smith!
congratulations! love to see my fellow young investors doing big deals. Im 22 and currently looking for a duplex/triplex in the DC area. In a couple months i would be able to share success like this! good luck in future investing!
Congrats, Rosston!!! I plan to follow in your footsteps and buy a four-plex in the near future. We just closed on a SFR which is our primary home with an FHA loan so the plan is to live here a year and then rent this place and move into one of the units of the four-plex. I know you have not posted any numbers yet, but I was wondering if you used any type of deal analysis/rental property calculator similar to the one here on BP?
Thanks.
That sounds like a fantastic plan! Getting a SFH first and spending a year to save. study, and analyze deals so when you're able to move out after a year you'll be completely ready to pounce and then you will have 4 doors to rent. Great plan! Congrats on your new home!
I am working on a post detailing all of the numbers so stay tuned for that! I didn't use a rental property calculator. What I used was my own individual criteria I developed through my studies. Using things like cap rate, average rents, location, local comps, curb appeal, and 1-2% rule to name a few.
WOW how inspirational.....CONGRATULATIONS on your first. May God's Blessings continue
Thank you so much! =)
Heck yeah thats the idea! How has your quad been going so far and what sort of things have you learned? Was it as hard as you expected? What is your plan for your next property?
Absolutely lets definitely connect and keep in touch! I'll be on the site daily and interacting with everyone here. Hey man 28 is still better than later! My plan is 7 figures by 30. Utilizing real estate, debt ,and other means.
How to answer that...
I would say doing good so far, I still have that over excitement level from the potential hold RE offers. So most things that have came up i'm just like o'well. I would honestly say the biggest surprise so far is the lack of calls. You always hear of that tenant that calls you 2 or 3 times a week so was expecting more along those lines. Mine are on the lower end of the spectrum. You hear different theory's on whether low end rentals product more or less phone calls, but I think it overwhelmingly comes down to the tenants personality. They virtually never called for anything.
I'll start off with saying I purchased the quad with the tenants already in place. I purchased from an a local investor/mentor and all but one of the tenants had been there for 5+ years. Long story short one tenant purchased a home and moved out, and the other one is gone for good. Policed knocked down the door and arrested him. I never heard a word until several days later when another tenant called and asked me about it. So that was a learning experience to say the least.
I'm looking at hiring a local Property Management team. The cash flow of the property is great so it works. I know starting out every penny would be better spent re-investing instead of paying a PM but working full time, I would rather spend my time looking for the next deal and I'm not as handy as a thought I was haha !! I'm still playing with the numbers on rather or not to hire one but def leaning toward it. I would say purchasing the quad first is the only way I would be able to do that so very grateful for that.
My plan is to simply save up for the next down payment. The investor I bought these from still has 20+ SFH and is older and wanting to sell them off, and as my "mentor" he would love to sell them to me. I'll probably cherry pick the ones I want. With the quad he is carrying the note at 0% interest for 6 years. Even at 72 Months it cash flows about 750 a month. So i will more than likely try and get the same deal on my next purchase from him and perhaps purchase a package deal of 2 or 3 within the next 6 to 12 months... depending on how the PM team goes and how much cash I can have saved up. I keep my W-2 and business money COMLETELY separate. So there is no additional money going to the business other than cash flow from profits monthly. With that being said when 12 months comes and i'm short on a down payment I have a little money stashed that I would be willing to use.
so to answer your question in short was it has hard as I thought... no not at all, its great !!!
7 figures by 30 sounds great and your on your way, i'll shoot for 35 lol !!
Hahaha wow! That's a great information. I see you've had some very fun experiences so far regarding your quad! I've been here two weeks so far and have only one call regarding a lockout of the unit.
I think its funny you say you inherited your tenants - I did as well! All of my three spare units are currently occupied. They've been there for 1 year, 3 years, and 7 years. I'm actually a bit relieved as the one thats been here 7 years paid promptly and immediately.
It is very advantageous that you have a mentor already who can assist you with acquiring deals. That will definitely help springboard your journey.
So are you only using your business money to pay for your acquisition of more properties? I would think you'd want to accelerate your journey by incorporating your W-2 income.
Thanks for the summary man! Thats honestly exactly how I picture my first year here. I'm not as handy as I would like to be, but I am certainly learning as much as a can as i go along. My father is also very handy and in the event i need more professional insight he is very willing to assist me. He also owns multiple SF rentals.
LETS DO IT MAN!!!!
Its funny you say that about your dad, my dad can do anything with a house. So I planned on learning from him and doing the same. So I love and agree with your plan and that was ideal ! With my family dynamic he is pretty tied up with my brother and sister so its worth it to me to hire out. Plus when we are able to work on things he is so so slow haha.. extremely thorough but i'm trying to grow a 7 figure business so any down time drives me crazy. That's also big time that your dad has SF's. Major information and advice to help save or limit mistakes, early on especially !
yeah I know your exactly right with my W-2 job really helping speed everything up. To be completely honest I had to sell it to my wife that way. She is a dental hygienist and makes great money but is currently still paying off her student loans. She was like our budget is great right now don't mess it up !!! She doesn't really desire more money but loves the idea of passive income and not working as much especially once we have kids. It also help after seeing that "easy" 1750 in cash come in each month in the business account. When the time comes for a down payment she'll be ready !!
10 doors by 30 has been my goal over the last year. The vacancies have put me behind a little bit but if i can buy 3 in the early part of next year. Then ill need another 3 before February of 2017. !!! might be a stretch goal but i'm going for it.
The similarities are great man! When/how did you first start looking into breaking out of the 'rat race' and taking your life to the next level?
Its great that you were able to get your wife on board! She will probably begin to become more enthusiastic later as she begins to see how much your efforts are affecting your daily life. I do not currently have a woman in my life now, and I don't plan to propose to anyone anytime soon so I don't have to worry about this yet.
You definitely have to set high goals (10x rule) and push for them. Make them happen. There really isn't anything better you could be doing if you think about it lol.
Congrats on your first property, @Rosston Smith!
Thanks a lot John!
congratulations! love to see my fellow young investors doing big deals. Im 22 and currently looking for a duplex/triplex in the DC area. In a couple months i would be able to share success like this! good luck in future investing!
Yes sir! Definitely can't wait to see your success and looking forward to reading your story here in a bit.
Go man Go! Congrats
I shall! Thanks!
Man i've always loved finance and investing. Growing up you always heard invest early so you can retire. You know the "every 7 years it will double" thing. So that has always been something i researched. So for years searching for ideas and strategy's to make my money work for me. Buy and hold RE was by far the one that makes the most sense not to mention the safest. Even starting out your not risking much money if you go into the deal right. I originally thought buy one let it pay itself down and save up to buy the next one with cash. Long process but great ! New plan is to leverage equity and BUY BUY BUY !!!
Plus i think everyone has the desire to be successful and live a certain lifestyle. Even at the bank the plan was maybe go back get my MBA have a good career bla bla... boring and after uncle sam I would never have enough to really accomplish what i wanted in life. So that was the biggest motivator.
I was really sold on the process for about 2 years. Reading everything i could watching BP podcast's and playing with the numbers mapping out my next 30 years to riches haha. To be honest I hadn't started actively searching for rentals at that time, didn't have any money saved up but i was extremely eager. So when this guy showed me a list of properties and the quad's numbers were so good I jumped on it. Even looking back i'm like dang that happened fast. With him financing the deal it was literally a conversation at Braums, and agreeing to the terms. Few days later we sign papers and it was ours. He originally wanted 10% down (6,700) and 5% interest. I asked if a larger down payment of 10k would be enough to get 0% interest and he was fine with it. With the 6 year note the 5% wasn't much but saved me saved 9,500+ over the term. I had to do an equity loan on my truck for 10k for the down payment. So the property was bought with virtually none of my money and was 100% financed.
Man i've always loved finance and investing. Growing up you always heard invest early so you can retire. You know the "every 7 years it will double" thing. So that has always been something i researched. So for years searching for ideas and strategy's to make my money work for me. Buy and hold RE was by far the one that makes the most sense not to mention the safest. Even starting out your not risking much money if you go into the deal right. I originally thought buy one let it pay itself down and save up to buy the next one with cash. Long process but great ! New plan is to leverage equity and BUY BUY BUY !!!
Plus i think everyone has the desire to be successful and live a certain lifestyle. Even at the bank the plan was maybe go back get my MBA have a good career bla bla... boring and after uncle sam I would never have enough to really accomplish what i wanted in life. So that was the biggest motivator.
I was really sold on the process for about 2 years. Reading everything i could watching BP podcast's and playing with the numbers mapping out my next 30 years to riches haha. To be honest I hadn't started actively searching for rentals at that time, didn't have any money saved up but i was extremely eager. So when this guy showed me a list of properties and the quad's numbers were so good I jumped on it. Even looking back i'm like dang that happened fast. With him financing the deal it was literally a conversation at Braums, and agreeing to the terms. Few days later we sign papers and it was ours. He originally wanted 10% down (6,700) and 5% interest. I asked if a larger down payment of 10k would be enough to get 0% interest and he was fine with it. With the 6 year note the 5% wasn't much but saved me saved 9,500+ over the term. I had to do an equity loan on my truck for 10k for the down payment. So the property was bought with virtually none of my money and was 100% financed.
I thought the same thing! Buying properties cash and saving up and buying another- terrible idea for aggressive growth and cash on cash return lol! Leveraging equity is definitely the way to go. Think about it, you can save up and buy or gather 100 people to contribute to a million + deal. That is so convenient to have someone be able to assist you with financing. Definitely a great resource for now and for the future. You're first deal was a breeze compared to my FHA loan process... Multiple seller delays, closing date delays, property revisements and underwriting halts... It was very annoying.
I like how you used your truck and negotiation to get 0% interest. Very steezy for your first deal!
@Rosston Smith do yourself a favor and abandon excel! down the road it gets so complex if you want to remember late fees and when certain repairs were made, when tenants switch etc...
@Rosston Smith do yourself a favor and abandon excel! down the road it gets so complex if you want to remember late fees and when certain repairs were made, when tenants switch etc...
The makes sense! What would you recommend instead? I'm only managing 4 units at the moment, so I'm not overwhelmed at all by the documentation.
@Rosston Smith I've heard good things about Builldium but I think they are better if you have dozens of units. I personally use rentigo and I'm quite happy. If you don't have a lot of units (yet) it's really easy to set up with them. I think it also depends on what you are looking for... I started with them because I'm trying to rent out to younger audiences and they want to pay with CC. Best of luck! :)
congrats!!! I'm trying to start myself. If I may ask, did you create a separate real estate company or just bought under your personal account?