Today - at age 24 - I "retired". Here's how I did it.

Real Estate Deal Analysis & Advice
9yFollow

Today - at age 24 - I "retired". Here's how I did it.

Filipe Pereira
Property Manager · Windsor Locks, CT · Member since 2016 · 1k+ posts · 1k+ votes

Hey all! Just sharing my story with the hope that it will light a fire under some of you, or keep the one you've already got burning hot. Here we go: 

It all started with a small loan of a million dollars from my dad....okay, okay only kidding!!

Last year I purchased a 4 plex with good amount of money down (20-25%) in East Hartford Connecticut. PP was 200K, and rents were at $3605 a month. I sat on the property for a few months, felt out the tenants and have since then asked a few tenants to leave, or increased their rent as a way to encourage them to find new housing. In the last 11 months or so, I have rehabbed two apartments (10-12K of material, labor done by yours truly) and am now sitting at gross rents just shy of $4,110. Recap - I got a 4 plex, put in 10-12K of rehab to get out an extra 6K per year. I like that ROI!


Most recently I purchased a SFR in Windsor Locks, CT. I'll admit, I'm a huge car buff, and I wanted the place for the generously sized 4 car garage....well, once we got to the inspection period, I didn't think the numbers would work, so I started to back out. The listing agent made magic happen though, and got the sellers to drop the price 60K! I figured that the house needed 30-40K worth of work. This property quickly became a home run deal.

Even though I'm a car guy and wanted that garage badly, I knew I had to mortgage the rest of the house with it...but, what 24 year old in their right mind needs a 4 bedroom house for himself? So guess who got himself a couple of house mates?? This guy! The mortgage and then some is covered, and now I am sitting on two properties, both with what I would consider good equity. One I will likely never sell, the other is more of a live-in-for-free-while-making-a-profit-flip. 

At this point, the money I make as a landlord is getting dangerously close to the money I was taking home from my W2 job as an entry level architect in training in downtown Hartford. I've decided to put that career on hold to develop a property management company here in north central CT. There is no way I could "retire" and sit on my butt for the next 60 years! Plus, I want to buy more cash producing assets, and be my own boss....that takes money! ;)

Here's to financial freedom, my friends!! 

Filipe

119Reply
568 views

Most Popular Reply

Audrey Ezeh
Real Estate Investor · Las Cruces, NM · Member since 2016 · 186 posts · 173 votes
9y


Origi?nally posted by @Filipe Pereira:

Hey all! Just sharing my story with the hope that it will light a fire under some of you, or keep the one you've already got burning hot. Here we go: 

It all started with a small loan of a million dollars from my dad....okay, okay only kidding!!

Last year I purchased a 4 plex with good amount of money down (20-25%) in East Hartford Connecticut. PP was 200K, and rents were at $3605 a month. I sat on the property for a few months, felt out the tenants and have since then asked a few tenants to leave, or increased their rent as a way to encourage them to find new housing. In the last 11 months or so, I have rehabbed two apartments (10-12K of material, labor done by yours truly) and am now sitting at gross rents just shy of $4,110. Recap - I got a 4 plex, put in 10-12K of rehab to get out an extra 6K per year. I like that ROI!


Most recently I purchased a SFR in Windsor Locks, CT. I'll admit, I'm a huge car buff, and I wanted the place for the generously sized 4 car garage....well, once we got to the inspection period, I didn't think the numbers would work, so I started to back out. The listing agent made magic happen though, and got the sellers to drop the price 60K! I figured that the house needed 30-40K worth of work. This property quickly became a home run deal.

Even though I'm a car guy and wanted that garage badly, I knew I had to mortgage the rest of the house with it...but, what 24 year old in their right mind needs a 4 bedroom house for himself? So guess who got himself a couple of house mates?? This guy! The mortgage and then some is covered, and now I am sitting on two properties, both with what I would consider good equity. One I will likely never sell, the other is more of a live-in-for-free-while-making-a-profit-flip. 

At this point, the money I make as a landlord is getting dangerously close to the money I was taking home from my W2 job as an entry level architect in training in downtown Hartford. I've decided to put that career on hold to develop a property management company here in north central CT. There is no way I could "retire" and sit on my butt for the next 60 years! Plus, I want to buy more cash producing assets, and be my own boss....that takes money! ;)

Here's to financial freedom, my friends!! 

Filipe

 Congratulations on these deals! You are taking action and doing amazing and that's very inspiring. Keep in mind however that the sweet bank loans with low interest rates are much easier to come by when you have a W2 income and maybe you are not entirely dependent on the cash flow to live on. So maybe hang on to your job for a little while longer while you grow your portfolio or have a strong private lending network :)

Congrats again!!

32Reply
See this reply in the discussion

169 Replies

Jump to latestLatest
  • Audrey Ezeh
    Real Estate Investor · Las Cruces, NM · Member since 2016 · 186 posts · 173 votes
    9y


    Origi?nally posted by @Filipe Pereira:

    Hey all! Just sharing my story with the hope that it will light a fire under some of you, or keep the one you've already got burning hot. Here we go: 

    It all started with a small loan of a million dollars from my dad....okay, okay only kidding!!

    Last year I purchased a 4 plex with good amount of money down (20-25%) in East Hartford Connecticut. PP was 200K, and rents were at $3605 a month. I sat on the property for a few months, felt out the tenants and have since then asked a few tenants to leave, or increased their rent as a way to encourage them to find new housing. In the last 11 months or so, I have rehabbed two apartments (10-12K of material, labor done by yours truly) and am now sitting at gross rents just shy of $4,110. Recap - I got a 4 plex, put in 10-12K of rehab to get out an extra 6K per year. I like that ROI!


    Most recently I purchased a SFR in Windsor Locks, CT. I'll admit, I'm a huge car buff, and I wanted the place for the generously sized 4 car garage....well, once we got to the inspection period, I didn't think the numbers would work, so I started to back out. The listing agent made magic happen though, and got the sellers to drop the price 60K! I figured that the house needed 30-40K worth of work. This property quickly became a home run deal.

    Even though I'm a car guy and wanted that garage badly, I knew I had to mortgage the rest of the house with it...but, what 24 year old in their right mind needs a 4 bedroom house for himself? So guess who got himself a couple of house mates?? This guy! The mortgage and then some is covered, and now I am sitting on two properties, both with what I would consider good equity. One I will likely never sell, the other is more of a live-in-for-free-while-making-a-profit-flip. 

    At this point, the money I make as a landlord is getting dangerously close to the money I was taking home from my W2 job as an entry level architect in training in downtown Hartford. I've decided to put that career on hold to develop a property management company here in north central CT. There is no way I could "retire" and sit on my butt for the next 60 years! Plus, I want to buy more cash producing assets, and be my own boss....that takes money! ;)

    Here's to financial freedom, my friends!! 

    Filipe

     Congratulations on these deals! You are taking action and doing amazing and that's very inspiring. Keep in mind however that the sweet bank loans with low interest rates are much easier to come by when you have a W2 income and maybe you are not entirely dependent on the cash flow to live on. So maybe hang on to your job for a little while longer while you grow your portfolio or have a strong private lending network :)

    Congrats again!!

    32Reply
  • David Whartnaby
    Fargo, ND · Member since 2016 · 24 posts · 13 votes
    9y
    Congrats! Sounds like you made some wise decisions and found some great deals! Now I need to find a real estate agent like yours!
    5Reply
  • Filipe Pereira
    OP
    Property Manager · Windsor Locks, CT · Member since 2016 · 1k+ posts · 1k+ votes
    9y
    Originally posted by @Audrey Ezeh:


    Origi?nally posted by @Filipe Pereira:

    Hey all! Just sharing my story with the hope tht it will light a fire under some of you, or keep the one you've already got burning hot. Here we go: 

    It all started with a small loan of a million dollars from my dad....okay, okay only kidding!!

    Last year I purchased a 4 plex with good amount of money down (20-25%) in East Hartford Connecticut. PP was 200K, and rents were at $3605 a month. I sat on the property for a few months, felt out the tenants and have since then asked a few tenants to leave, or increased their rent as a way to encourage them to find new housing. In the last 11 months or so, I have rehabbed two apartments (10-12K of material, labor done by yours truly) and am now sitting at gross rents just shy of $4,110. Recap - I got a 4 plex, put in 10-12K of rehab to get out an extra 6K per year. I like that ROI!


    Most recently I purchased a SFR in Windsor Locks, CT. I'll admit, I'm a huge car buff, and I wanted the place for the generously sized 4 car garage....well, once we got to the inspection period, I didn't think the numbers would work, so I started to back out. The listing agent made magic happen though, and got the sellers to drop the price 60K! I figured that the house needed 30-40K worth of work. This property quickly became a home run deal.

    Even though I'm a car guy and wanted that garage badly, I knew I had to mortgage the rest of the house with it...but, what 24 year old in their right mind needs a 4 bedroom house for himself? So guess who got himself a couple of house mates?? This guy! The mortgage and then some is covered, and now I am sitting on two properties, both with what I would consider good equity. One I will likely never sell, the other is more of a live-in-for-free-while-making-a-profit-flip. 

    At this point, the money I make as a landlord is getting dangerously close to the money I was taking home from my W2 job as an entry level architect in training in downtown Hartford. I've decided to put that career on hold to develop a property management company here in north central CT. There is no way I could "retire" and sit on my butt for the next 60 years! Plus, I want to buy more cash producing assets, and be my own boss....that takes money! ;)

    Here's to financial freedom, my friends!! 

    Filipe

     Congratulations on these deals! You are taking action and doing amazing and that's very inspiring. Keep in mind however that the sweet bank loans with low interest rates are much easier to come by when you have a W2 income and maybe you are not entirely dependent on the cash flow to live on. So maybe hang on to your job for a little while longer while you grow your portfolio or have a strong private lending network :)

    Congrats again!!

    Yes, valid points. I decided that because I don't have a large salary from my W2 job, I was not very bankable by typical Banks standards anymore. That, combined with the fact that deals are hard to come by nowadays encouraged me to go ahead and put in my resignation two weeks ago. Today was my last day!

    14Reply
  • Audrey Ezeh
    Real Estate Investor · Las Cruces, NM · Member since 2016 · 186 posts · 173 votes
    9y

    That must be incredibly liberating!! Best of luck as you grow exponentially!

    3Reply
  • James McCard
    Investor · New Hartford, CT · Member since 2016 · 282 posts · 104 votes
    9y

    Congrats my guy. Think of all the car stuff you can do now!

    3Reply
  • Garrett Vita
    Walnut, CA · Member since 2017 · 47 posts · 13 votes
    9y
    @filipe congrats! Keep up the hard work! Great story and inspiring
    0Reply
  • Filipe Pereira
    OP
    Property Manager · Windsor Locks, CT · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    Thank you guys! Now I am looking forward to helping other investors purchase property and help them become financially free as well!

    3Reply
  • Melba Chambers
    Rental Property Investor · Norwalk, CT · Member since 2017 · 171 posts · 138 votes
    9y

    Congrats...Keep Grinding.

    1Reply
  • Shawn AckermanPro Member
    Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
    9y

    @Filipe Pereira great story.  Congrats my friend. All the best to you in your years to come!!!

    0Reply
  • Rohith Janga
    Fort Collins, CO · Member since 2016 · 34 posts · 13 votes
    9y

    Thanks @Filipe Pereira for sharing your story. Congratulations. Stories like this keeps me motivated to persevere.

    0Reply
  • Troy Luster
    Investor · Atlanta, GA · Member since 2017 · 136 posts · 54 votes
    9y

    @Filipe Pereira That's awesome!  Thanks for sharing.

    0Reply
  • Filipe Pereira
    OP
    Property Manager · Windsor Locks, CT · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    @Shawn Ackerman @Troy Luster thank you! 

    Glad it helps @Rohith Janga! 

    0Reply
  • Mateusz Prawdzik
    Developer · Little Ferry, NJ · Member since 2016 · 426 posts · 226 votes
    9y

    @Filipe Pereira I know how you feel. I started just 10 months ago and I have never stopped since, but then again, the market has been going up like crazy so we are riding the wave for now. Being 19 when I started with 0 experience in REI and only a little bit of capital to start, I didn't have much of anyone to trust me. Now being 20, with 8 flips collectively done with my partner and 5 whole sale deals in 10 months... everyone is turning to me for advice and motivation. That is one reason why I came back to BP and started marketing and social media branding, in order to help motivate others and educate them at the same time.

    I know exactly how you feel, my ego is too high to have someone telling me what to do. I am humble but I also am very assertive in ways that don't allow me to be bossed around. Being your own boss and working 20 hour days, but growing something that is yours is way more rewarding then just getting some ******** $200 check at the end of the week. If you want to be successful in life, you can't settle and get comfortable, you have to jump in feet first and just go for it. FULL THROTTLE. At my age, I was in a better position than anyone I knew in the sense that I was able to take so much risk that I didn't even know I could take.  But it all paid off at the end. 

    Well, enough preaching... Please if you have any questions about REI, please connect with me and reach out. I am a builder/developer so my main expertise lies in that side of REI but I am also very knowledgeable in other aspects of REI, so don't be afraid to ask. Additionally, check out my profile, read thru my forum posts, I am sure you will find great deal of information on there that I tell others since you are just starting.

    Don't stop at 2 properties. In the REI world, that is absolutely nothing. Go for more.

    Welcome aboard. 

    7Reply
  • Jennifer Slaughter
    Real Estate Agent · Fort Collins, CO · Member since 2016 · 246 posts · 142 votes
    9y

    Congrats @Filipe Pereira, I enjoyed reading your story!

    0Reply
  • Jim S.
    Rental Property Investor · Denver · Member since 2017 · 121 posts · 121 votes
    9y
    Great story! Wish I was acquiring properties already at that age - by the time pure 30 you'll be in a very good position at this rate. All the best with the new property management venture. Would recommend doing some reading on SEO/SEM so you can promote that business fairly cheaply :)
    0Reply
  • Aziz Raji
    Real Estate Agent · Chicago, IL · Member since 2017 · 715 posts · 138 votes
    9y

    Great post !!! I know this is motivation for me and my fellow bigger pockets members. Love seeing success stories like this. Thanks !!

    0Reply
  • Filipe Pereira
    OP
    Property Manager · Windsor Locks, CT · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    Thank you everyone. @Jim S. my goal is to acquire about $1mil worth of real estate by the time I am thirty and pay it all off between 30 and 35. I agree that SEO/SEM is a great way to grow, especially given people's drive to Google everything nowadays...I guess I need a website first.

    1Reply
  • Kurt PhillipsPro Member
    Realtor · Lancaster, OH · Member since 2017 · 163 posts · 120 votes
    9y

    Congrats @Filipe Pereira!  There is no better feeling than that first Sunday night when it hits you, "Wait a second, I don't have to go to work tomorrow...or the next day."  That is an awesome goal to acquire $1 million worth of real estate.  You can totally do it by 30 if not sooner!

    4Reply
  • Filipe Pereira
    OP
    Property Manager · Windsor Locks, CT · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    @Kurt Phillips, it's hitting me right now!! This has been one of the most relaxing Sundays in a long time! haha :) :)

    2Reply
  • Jordan B.
    Real Estate Agent · Long Island NY · Member since 2017 · 89 posts · 33 votes
    9y

    @Filipe Pereira Awesome story! I am 22 years old and am looking to do something similar to what you did.  I have a few questions...

    1) How much did you save as a cash reserve after putting down the initial 40-50k down payment?

    2) How long were you actively looking for your first investment before finding it?

    3) How were you searching for your deals and specifically how did you find these two?

    Thank you for your time and I look forward to hearing what you will do next!

    -Jordan

    4Reply
  • Mazen Al Ashkar
    Real Estate Investor · Montreal, Quebec · Member since 2015 · 95 posts · 42 votes
    9y

    @Filipe Pereira Love it! Keep it up!

    0Reply
  • Account Closed
    Orlando, FL · Member since 2017 · 11 posts · 1 vote
    9y

    Congratulations, that's exactly the way to do it, help others as well.

    0Reply
  • Elon Matias
    Lender · Newport News, VA · Member since 2016 · 26 posts · 2 votes
    9y
    Congratulations on the success. I am actually in the process of buying my first property at age 21. I would definitely like the advice. Knowledge is power. Feel free to help me if you'd like lol.
    0Reply
  • Account Closed
    Los Angeles, CA · Member since 2017 · 16 posts · 8 votes
    9y

    Thanks for sharing and congrats to your success.

    0Reply
  • Filipe Pereira
    OP
    Property Manager · Windsor Locks, CT · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    Thanks everyone, I do appreciate the kind words! 

    1- Truth be told, after closing on my first one, I didn't have much to my name. Between the down payment and closing costs, I was out a good chunk. I took the next few months to build a reserve of 10,000. I calculated this by figuring out what it would cost to replace 4 water heaters and 4 hot air furnaces all at once, pretended I had 4 vacancies, and added a couple thousand to it. So the property could be completely empty, with all the high dollar items broken inside, and I would still be OK financially...Also consider the price of your insurance deductible. You always need to have at least that much!

    2- Right around 2 months. I walked through 20-25 properties before getting the first deal (I kept a list of them!)

    3- Read this post on How I got my first deal. My most recent deal was on the MLS.

    Happy to answer any other questions    

    @Jordan B.

    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free