I'm happy to report that I have met my real estate goal for 2014 to get started and buy something! I just closed on a 4-plex which should give me about 15% cash on cash returns, and will cash flow about $500 per month.
Its been a year long journey to get to this point, and I wasn't sure I was going to make it!
At the beginning of 2014 I set goals to educate myself, find a market, establish a team, and buy my first property. After reading the Millionaire Real Estate Invester I was convinced that MFH buy and hold was what I wanted to do. I started out determined to invest locally in state in California since I was new to every aspect of this business. I also made my own property analysis spreadsheet and decided that I wouldn't invest in anything that didn't give me over at least 12% cash on cash returns. Although I found some markets and deals in California which would cashflow, nothing really met my financial criteria. By October - still property-less - I began to question my strategy and criteria. After all, a strategy which isn't resulting in any investments, isn't much of a strategy at all. I was certain that I didn't want to lower my cash return requirements. So although it terrified me, I decided that I would start looking out of state.
It was around this time that Jays investment summit happened in San Francisco. I met many out of state investors, and started understanding how to mitigate some of the risks of out of state investing. I connected with @William Robison there and after the summit we started talking about investing in Kansas City. After some searching, we found a deal, I vetted the numbers with the incredibly helpful folks in the Deal Analysis forum, and closed on 12/31!
As of today, I'm a landlord! Time for my analysis spreadsheet to meet reality. *gulp*
I am deeply grateful for the community here on BP. I certainly would not have made it to this point without you guys. So, thanks @Joshua Dorkin and @Brandon Turner for making this place awesome - especially for noobs like me.
Thanks to my local buddy @Troy Fisher for the early and continuous encouragement to get started.
Finally, thanks to @J. Martin for his advice, inspiration, and for creating many networking opportunities for investors in the area, especially the *annual* :-) summit in SF.
I'm ready for you 2015! :-)
Congrats!.. This is truly inspirational.
@Omi C. Congratulations and Happy New Year!
Nice work, Omi. I started my RE endeavors in late Q3 of 2014 and have not closed on my first property yet. Gained an incredible amount of knowledge, networked with many local investors, and have assembled a nice team for when I hit the ground. My 2015 goal is purchase two properties in my hometown. I also built a property analysis spreadsheet in Google docs so I can run figures on potential rental properties from anywhere. Very helpful. Here's to a prosperous 2015!
Sounds like I owe you a beer! Let's get together soon.
@Omi C. why did you close in 2014 vs. 2015? i was thinking closing costs would be better in 2015? congrats btw
good job. what was the price of the 4 plex? what are the incoming rents per unit? I want to compare it to st Louis 4 plex's.
@Drew Schade good luck in 2015. I use Google Docs too. This way I can access/use my analysis sheet from anywhere.
@Troy Fisher a beer sounds great!
@Kirk R. The seller wanted to close in 2014 for tax reasons. I offered a fast close in exchange for a discount. Why would closing costs have been better in 2015?
@Gordon Cuffe You can see some of the details in this deal analysis thread.
Thats Awesome! Congrats on meeting your goal. I hope I can do the same this year.
Congrats!! We closed in our fist deal in 2014 as well. Doesn't it feel great to be in the game?
@Omi C. ,
Thanks for the shoutout! And glad I could help stir the ideas and get people together at the Summit to get connected and GET SOME DEALS CLOSED! Thanks @William Robison for coming out to share, and getting connected. And congrats to Omi on your first deal! Sounds like you made your 2014 goal right at the last minute ;)
I closed my owner-occ 4plex on Dec 31, 2012, so we have one property anniversary together! To many more! ;)
Thanks for sharing your experience and the details in the other thread. It's inspiring!
Hello @Omi C.
Thank You for making us a part of your 2014 goal. Im glad that we were able to assist you in reaching your goals. I think you have picked up a nice property with a little bit of "value-add".
2015 will be a good year and I wish the best for everyones successes.
@Omi C. How exciting! I'm so happy that you finally got your cell to turn green!! ;)
I look forward to keeping up with what you're doing, and I'll see you next year in SF at J. M. 's annual summit!
LOL @Lynn Currie - so funny that you remember my red/green cell! Lets hope it stays green. :-D
Yeah, see you next year. If we all keep saying *annual* summit @J. Martin will have no choice but to do it again.
Congratulations! I hope to buy my first small multifamily this year, so this was definitely inspiring. :)
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