Woohooo, We're Excited!!
We have a real-life, Real Estate Success Story, and couldn't wait to share it with the BiggerPockets Community. BiggerPockets has been such a wealth of information and the knowledge we have gained and continue to acquire from this valuable resource is immeasurable.
My wife and I have been real estate investors since 2008, acquiring 4 single-family homes (outside of our primary residence) over the past several years. While 3 of the homes were yielding pretty consistent positive cashflow, one of our properties had constant tenant turnover, causing us to spend lots of money in vacancy costs & make-readies for the next tenants. As we all know...this eats at your profits quickly.
We determined that we should go ahead and sell the property, and in order to avoid the capital gains tax, we decided to do a 1031 exchange. This was our first time doing a 1031 exchange, so we had plenty to learn, but we knew that it would provide tax savings. We set our sights on multi-family units, as we felt like we were ready to graduate to larger investments and take advantage of the concept of economies of scale.
We put just over $14k into renovations, worked with our real estate agent to stage and show the house, and had 10 offers in 3 days! We closed in less than 2 weeks on an offer that was $7500 over our asking price. Our next stage was to locate a property/properties within 45 days in order to meet the requirements for the 1031 exchange. After spending many hours researching over 100 properties on the MLS, using the BiggerPockets calculator to find the best deals for us, honing our negotiation skills and placing several offers, we landed not one, but TWO multi-family properties that will yield us $4000/mo gross...a nice jump from the single-family that we sold, which was about $1100/mo gross. Not too shabby for our first venture into multi-family dwellings!
The goal is FIRE - Financial Independence/Retire Early, and we are well on our way! Thanks to BiggerPockets for being our long-distance teacher. Did I mention that we’ve done all of this from Budapest, Hungary?!
Wow! Thats amazing! I am curious to know how you managed all this from Hungary?! Did you have boots on the ground - in terms of agent, contractor etc.?
@Nazakat Hossain my brother is a realtor in Dallas, TX, where we sold our first property. He managed the renovations, staging, and selling of our SFR there. Our replacement properties are in Cleveland, OH, where we already own two other properties. So we already have a great team there as well.
Way to go @AJ Golden . Congratulations on your success.
Thanks @Alli Ojutiku
@AJ Golden Congrats on all the success so far, Cash Flow is King!
@AJ Golden Congrats! What's the net look like on those properties?
@AJ Golden So happy for you!
@Sarina Drucker many thanks!
@Taylor Chiu we’re going to be bringing in just under $800 per month cash flow.
@Jad Boudiab you’re absolutely right.
@AJ Golden Thats Awesome, Congrats!
Congratulations; that is incredible!
@AJ Golden congrats on your success. I also have been looking for a market to invest in. Can you hook me up to your agent in Ohio?
@AJ Golden Congrats, curious why you decided to leave the Texas market for Ohio?
Great story AJ and continued success on your FIRE venture. I am looking to buy small multifamily properties here in Cleveland. Can you share your realtor with me and if you know any good realtor friendly contractors which you hVe used before?
@AJ Golden . Great story! Thank you for sharing, a true inspiration. It CAN happen.
Great job on this accomplishment. Good luck on your future endeavors.
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