Newbie to 5 units in 7 months!

Newbie to 5 units in 7 months!

Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
I want to personally thank the BP Community for being so helpful and very humble with all of the questions us newbies always have. With the help of this great network my wife and I were able to start our OOS investing career at the close of 2017 and we are very blessed and thankful to say that we currently have 5 units under our belt and are in the midst of acquiring 2 more before the close of this year with the amazing growth that we gained from our first unit which we are in the process of doing a cash out Refi on. Alot of people here in the Bay Area think that OOS investing is crazy, that I'm out of my mind and that you can never grow wealth this way and that you should invest here in the Bay and blah blah blah so it was very difficult to learn and go at this alone until I found this beautiful network of good folks doing it everyday! My thing was always, sure I can invest here in the Bay Area but by the time it would take me to acquire $150k down payment I could have taken the opportunity and purchased 5 properties out of state that cash flow positively getting more bang for my buck. All I needed was a good team in place which I'm blessed to say I have in the 2 markets that I'm currently vested in. Our first deal (SFR ranch is sitting at a 10% COC return after all expenses, vacancy, maintenance, capx,property management, PITI etc.. our second deal (4plex is sitting at an 8% after the same expenses with meat on the bone to get me closer to a 9.5%) For all of those that were newbies like me hearing negative things and that you cannot build wealth, I'm here to tell you that yes you can! We have so much valuable information at our fingertips to make this possible especially with the amazing community here on BP! Thank you again all, I'm humbled and very much appreciate all of you! Junior
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Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes
8y

You never mentioned where you are investing out-of-state.

See this reply in the discussion

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  • Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
    8y

    @Junior Soares congrats man! It is amazing the resources we have available to us on BP.  Keep up the good work!

  • Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes
    8y

    You never mentioned where you are investing out-of-state.

  • Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
    8y
    @John Warren Good morning John, yes this is an amazing platform! And thank you very much, I very much appreciate it
  • Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
    8y
    @Brian Garrett Good morning Brian, My apologies, my 1st SFH property is located in Midland Michigan and my 2nd property (4plex) is in Marysville Ohio. Best, Junior
  • Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
    8y
    @Jacque Sacramento Good morning Jacque, sure no problem: Michigan SFR Ranch: Purchase Price: $85,000 DP All in: $17,000 including a few repairs Currently rented at $925 (3% below mkt) PITI: $550 Property Management: $90 Vacancy 5%: $45 Maint 5%: $45 Capx: $50 (will need roof in 10 yrs, all else fairly new) Net income: $145 (10% COC) Just got it appraised at $105k and in the process of doing a cash out refinance and purchase another property. Ohio 4 plex : Purchase price $106,000 Paid cash 106k Currently rented at $2,050 Property Tax: $210/M Property Mgt: $200 Insurance: $100/M Trash: $85 Water/Sewer: $200 Vacancy: $200 Maintenance $200 Capx: $200 (interior completely renovated, roof in about 5 years) Net income: $655 (on track for 8% this year with a few minor adjustments) I plan to do some minor exterior remodels, including paving 4 parking spaces in the back for the tenants and bring rents up to market at $2,250 within the next year and sell to get into a larger multi family. Both properties have 3 months worth of all expenses in each of their bank accounts.
  • Rental Property Investor · Denver · Member since 2018 · 24 posts · 8 votes
    8y
    @Junior Picanco great job! What was your reasoning with opening single checking accounts per rental vs having a single bank account for all properties?
  • Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
    8y
    @Jacque Sacramento yes sir
  • Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
    8y
    @VB Phom Good afternoon, I have both properties in an LLC reporting up to a holding LLC. The holding LLC holds my positive cashflow while I run each property with their own accounts. Helps me with organizing my taxes at the end of the year with my P&Ls Best, Junior
  • Rental Property Investor · Denver · Member since 2018 · 24 posts · 8 votes
    8y

    Good insight, thanks Junior. Would you mind if I send you a private message to ask you about the details? I'm starting out and was looking into doing something similar to what you have with regard to your structure. I'd love to pick your brains a bit on this topic as we are closing our first deal in about 3 weeks here. Thanks. 

  • Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
    8y

    @vbphom Yes please, I'd be more than willing to help in any way that I can. 


    Best,

    Junior 

  • Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y
    @Junior Picanco Very nice. What class of area are these assets? Did you get a loan on the 85k one? If so make sure you aware of the due on sale clause (assuming it’s conventional) Are you funding these with a heloc, cash out refinance or just straight cash? Be careful on those 500-600 type rent apartments. Can be very difficult if you’re not careful. For your second quad, I would leverage moderately and buy a nicer asset. See if you can get rents at or above 700-750 a unit. I would put 35-45 percent down if you go that route.
  • Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
    8y

    Hi Caleb, 

    Thank you sir, I appreciate it! My Michigan property is a B class neighborhood and yes it's on a conventional 30 year loan. I was aware of the due on sale and my lender told me that it would not be an issue when we did the transfer into the LLC.

    The Ohio quad was straight cash, I am looking into finishing the exterior rehab, and upgrading to a nicer quad or maybe even a down payment on a larger apartment complex. Mind if I shoot you an email? I'd love to connect with you ourside of this forum and pick your brain a bit. 

    Best, 

    Junior 

  • Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
    8y

    Sorry Caleb, forgot to mention the Quad is in a C class neighborhood. 

  • Phoenix, AZ · Member since 2018 · 35 posts · 15 votes
    8y

    Hi @Junior Soares

    How did you choose the locations? Did you fly in and take a look at the properties?

  • Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
    8y

    Good afternoon Marvin, I just PM  you brother. 

    Best, 

    Junior 

  • Riverside, CA · Member since 2017 · 13 posts · 6 votes
    8y
    Hi @Junior Picanco, Congrats!! I had the same question as Marvin if you don't mind. Looking to do something similar.
  • Huntington Beach, CA · Member since 2017 · 5 posts · 4 votes
    8y
    @Junior Picanco Good job! Any advice for someone like myself who is in the research phase and looking to do OOS investing for his first deal?
  • Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
    8y

    Thank you Robert and Dantez, 

    Absolutely, PM me lets connect! 

    Junior

  • Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y
    @Junior Picanco Feel free to email or PM me. Just tag me in any future comments so I see it. With the llc if the loan processor says it’s okay it may still not be okay. That’s the issue I’ve had. It’s unlikely anything comes of it, but just figured I’d throw that out there.
  • Investor · Thousand Oaks, CA · Member since 2016 · 126 posts · 47 votes
    8y

    congrats! 

    good team is key!

  • Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
    8y
    @Caleb Heimsoth awesome will do. I actually have some questions about your area in NC that I'd like to pick your brain on.
  • Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
    8y
    @Amy Hu yes ma'am, I totally agree.
  • Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
    8y
    @Jacque Sacramento There's no secrecy, I just gave you all of the details and numbers on both of my deals. If you want to know how I chose my markets was through some research and couple of friends in these areas that that I met on BP.
  • Investor · Nashville, TN · Member since 2018 · 21 posts · 7 votes
    8y

    @Junior Picanco good work man. Keep on climbing...

    Best,

    DJ 

  • Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y

    @Junior Soares  no prob just message me.  I’ve also lived in Dallas and grew up in the Midwest.  I can give you basic info about lots of areas 

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