From 0 to 8 Rentals in Just 4 Months!

88 Replies

Hi all -

I've been a long time lurker on BP and am happy to say I've listened to every Podcast and read as many posts as I can.  My passion for real estate started with rehabbing because I love turning old run down properties into updated homes that families can enjoy.  I did a few rehabs back around 2002 as a hobby and then took a long hiatus from real estate.

This year I decided I wanted to get serious about investing. I hired a mentor in January to teach me how to wholesale off the MLS and quickly did two wholesale deals. I can definitely say that I don't love wholesaling but appreciate all those out there who do.

In April of this year, I was about to wholesale my third deal for a nifty $10k profit when my mentor recommended that I start building a rental portfolio.  So I purchased the house for $56k and it currently rents for $1k a month.  I quickly found a second house with very similar numbers a month later.

I continued to build relationships with realtors and was approached with a six house deal for $320k.  All the houses have been completely remodeled and have tile throughout along with updated kitchen and bathrooms.  The investor who owned them was moving to another city and didn't have the stomach to be a long distance landlord.  I just closed on those six houses which each rent for $1k a month each to bring my total to eight houses.  

Next month I'll be closing on my 9th house which is bringing me very  close to my goal of buying 10 rentals this year.  All houses are in Class C subdivisions and I purchased with 20% down loans.  

Thanks to everyone who helped answer my questions along the way and to the BP folks who share knowledge and continue to motivate through podcasts and articles.  I hope this motivates others to follow their dreams.

Happy Investing!

Ehab

wow that's great, congrats on your success. I hope one day, i can get there. Keep the great work going!!!

Ehab Shoukry Congrats! Way to take action quickly and build your portfolio. What area do you invest in?

who is your mentor? Anyone we might know. So many of the "mentors" we see online  are not. Congratulations on your success 

Joe...I mostly invest in the south and southeast parts of Houston. All of my deals have come off of MLS or realtors I met through MLS who I established credibility with.

Mark... My mentors were through Su Casa realty in Houston. They offered a VA service which I used to make multiple offers every day to help find deals. Like any mentor you get what you put in so I was VERY hungry to succeed.

That really is great how well you are doing. My only advice to you is not to get caught up in a buying frenzy. My business partner and I bought 20 homes inside of a year and half and it was a huge mistake because we just wanted to keep buying and did not make sure that the homes fit our business model. In fact we did not even have a business model which is why we had some many failures and set backs along the way.

Definitely keep going but do not fall into the well buy anything because its a great deal and I found it trap like I did. In reality only about 8-10 of my 20 were properties I should have purchased for various reasons. But all I saw was a deal and thought I needed to get it.

Again just my thoughts and my personal experience of the other-side of buying too quickly

Great stuff, reading a success story like yours just motivates me even more.

Well done and motivating to me. 

Ehab congrats

Could you please provide each property taxes, 

insurance, maint expenses, renovation, and etc

Steve...I think that's great advice. All of these properties fit my investment criteria. The biggest risk I have is with the tenants I inherited. They are going to need retraining, however, the properties themselves are all home runs IMHO. They have all been remodeled by another investor who dealt with the headache of permits, contractors, city inspectors, etc. 

The tenants are used to someone knocking on the door asking for rent but I've already sent letters to all of them explaining our policy which is direct deposit at any Bank of America or I offer online bill pay. 

I'm planning on being firm but respectful. 

Thanks. 

Ehab

very inspirational, thanks for sharing.

@Ehab Shoukry ,

I have questions - Did you took bank loan to buy all properties? If yes, please provide the bank name. How did you gather down payment? What kind of loan you have? 

How do you come up with the 20% down payments? Savings? Brrrr?

congrats buddy have a couple of questions myself. Your bank loans were they purchased though you are private lenders. Second how did you run your number to know they were all good deals, im trying out buying apartments would love to know how you did it.

Way to rock it Ehab! Keep up the hard work.

See you at the top!

This is a great story, and it looks like, at least at a very basic level that you're seeing some very good price to rent ratio numbers. Since you have done some rehabs have you considered doing BRRR? buying, rehabbing, renting it out, cash out refi, and then repeat? It could have you using the same $40-$50k over and over, simply recycling it instead of having to fork out a 20% downpayment each time, which I assume that has to end at some point because it's simply too expensive, unless you find a partner to be your financier with you and split the deals that way. But this is a very good post, thanks for sharing and congrats and jumping in, I love to see posts like these.

Congrats.  I have one request that I'm sure will go unanswered but it sure would be nice to talk in terms of $ value instead of units.

It's almost impossible to find an "mls" house under 200k in my area, I could buy 4 units in some areas for this cost if not more.  I don't plan to buy off the mls, actually I refuse to buy retail for investment purposes and is why I've become a realtor and will be restarting a DM campaign asap.  I'll gladly sell at retail and take a commission on top of that.

Wow! Awesome success story.

Originally posted by @Ehab Shoukry :

Steve...I think that's great advice. All of these properties fit my investment criteria. The biggest risk I have is with the tenants I inherited. They are going to need retraining, however, the properties themselves are all home runs IMHO...

 Hey Ehab, congrats on your success!  You said "the properties themselves are all home runs IMHO."....what is IMHO? I am not familiar with that acronym. 

Thanks, Brian 

Originally posted by @Brian Lauchner :
Originally posted by @Ehab Shoukry:

Steve...I think that's great advice. All of these properties fit my investment criteria. The biggest risk I have is with the tenants I inherited. They are going to need retraining, however, the properties themselves are all home runs IMHO...

 Hey Ehab, congrats on your success!  You said "the properties themselves are all home runs IMHO."....what is IMHO? I am not familiar with that acronym. 

Thanks, Brian 

I believe IMHO is "in my humble opinion".

HAHA thanks Barb! I wasn't even thinking about that...I was trying to figure out some real estate term... hahaha

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