Had goal of acquiring 1 single-family home per year starting this year, with stretch goal of acquiring 2 per year. We just signed the papers on #2 this morning. The first deal has turned out to be pretty good so far, although it took a while to get it to where the money coming in wasn't going right back out to things like the initial property tax payment, and so on. The second deal could (and hopefully will) turn out to be even better long term, as our out of pocket investment is about 20%-25% less on #2, even though the class of asset, area, rents, etc, should be very similar.
The tentative goal for 2017 will be to get to 4 properties. At that point it should be a lot less feast or famine when it comes to vacancies or tax bills, or other expenses.
Nice job, @Marc Hanson .
When did you purchase #1? Did you stop looking for a while or keep an eye on the market even though you had already purchased? How did you find both deals?
We put #1 under contract in January. Had it occupied in April (That probably should have been rented a bit sooner than it was, but there were quite a few repairs we did and had a bit of a slow start on that one.) I wanted to space them out for a couple reasons. 1.) To give time for the previous home to be cash flowing before picking up the next one. That takes several months between closing, repair/make ready, getting it leased, 1st month rent goes to mgmt company, and rent is deposited in my account at the end of the month. 2.) Because I'm working with a management company that is a few hours away, I am slow-rolling my investment relationship with them. If they continue to do a good job for me, they will continue to get more properties to manage for me. If they don't, I'll look elsewhere. I do expect them to do a good job, but I'm a cautious person, so I did not feel comfortable emptying my 401k, buying a bunch of houses, and saying "Here you go, boys!"
I found the first property on the MLS with an agent who took me looking for investment properties. The second property was managed by the management company already, and the investor who owned it was selling it to move his money into another investment. It got under contract with someone else, but that deal fell apart, and my agent tipped me off that it was coming available. I snagged it before it got advertised again.
Congrats @Marc Hanson ! You'll get to 4 easily, so set your targets a bit higher. Keep us posted on your progress!
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing