0-25 units in four months and it all started with Bigger Pockets!

160 Replies

My goodness, what an inspirational story. Congrats man! I'm hoping to land my first deal asap but am too scared still. Trying to find a mentor/partner has been a little rough but I know my anxiety will be kicked to the curb once I find that mentor. Good luck with your future endeavors!

are these properties all local to you or spread out? I'm looking at buying my first invetment property this time next year. using a VA loan and living in one of the units for 2 years (required for VA funding) but after that I want to reach outside of my market to find properties in the same price range you did. just curious on your experience with you properties locations

@Brent Breitbach all the properties are in a fairly close vicinity so that I can, 1. effectively manage the units 2. So that I am familiar and comfortable with the location. 

I really like the ability to see and manage my properties on a daily basis.

Best of luck with future investing!

@Collin Schwartz - Congrats on a fantastic start Collin! Truly impressive! 

Any advice on starting that kind of trajectory without a HELOC available for downpayments?

Well done! Someone asked this but i didnt see a response. You are finding that banks are allowing your down pmt to be from an HELOC? Is that commercial loans only maybe given their approval is not solely based on your credit?

If this is the case, i now have a goal similar to your accomplishment. Thx Collin!

@Collin Schwartz That's an incredible start and pace, seriously impressive. Congratulations!

After getting started with one last year and one this year, I've taken a pause to try to figure out how to ramp and scale things up to exactly that sort of pace. Would love to understand more about your deal flow.

Originally posted by @Collin Schwartz :

Here is an example of my third property I purchased (duplex) I am choosing this one as the price was $100k and makes for easier math:

Purchase Price: $100,000

Rehab cost: $19,500 (remodeled one unit, roof patching, finished flooring in both units)

Closing Costs: $4,340

All financing (Mortgage and LOC) amortized over 20 yrs (4.75% int rate): $801.32

Vacancy: 5%

Repair: 10%

capex: 5%

Management (I pay this to myself): 10%

Taxes: $2,937

Insurance: $1,300

Cap Rate: 10.81

Yearly Cash Flow: $3,787

Principal Paydown: $3,808

@Collin Schwartz Congrats Colin - very inspiring to hear about the results from you taking action. 

Question about the taxes - I'm new to REI accounting but your taxes look high. Shouldn't all the expenses (i'm thinking depreciation especially) help reduce your effective tax rate much lower?

Updated over 3 years ago

nevermind - i think your "taxes" line prob includes both property and income taxes.

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