17 Units in one year!!! Time to season!!!
Good afternoon BP,
Well we have done it again!!!! My wife and I have put on contract our 4th buy of the year, engrossing a total of 17 units, and 18 units total for our business. We now/will own a SFR, a triplex, two quadplexs and a six plex. We anticipate by December, when our repairs are complete our GOI will be 11.5k per month and our NOI once fully rented will be 4.5k per month.
To accomplish this mission we had to open two LLC's, successfully execute a 1031, and buy an Air BnB. Every structure I have bought has had termites, bed bugs, or horrible tenants that we have had to "wait" out, and implement a plant to get the structure back to cash flow positive. We opened a HELOC for just in case measures and it has worked out perfectly!!! We have successfully revitalized our first two buys, and are in the process of cleaning out our 6 unit to get it that into a stable structure. All in all we initially anticipated 1 to 2 months for structures to stabilize but it took a little longer. I have definitely learned that if I anticipate 3-4 months to "find" all the hidden gems (insane tenants or lack of them, bed bugs, "do it yourself" tenants that kill two units) that my patience and tolerance level to "pain" (pain = the dreaded phone call that you are not going to cash flow this month) is much higher.
Now, it is time to pay down business debt (about 30k in repairs so far and about 5k in repairs still needed) and get ready for 2018 buying season!!! Our goal is to get NOI to 6k a month by the end of 2018, and work on a big push to 10k a month by 2019!!! My ultimate goal is 15k a month, both my wife and I can retire once we get there, and not take a pay cut.
Our biggest asset has been bigger pockets and the knowledge, and networking that comes from it!!!!
Happy Saturday, and good luck!!!!
Johnny