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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  • Flipper/Rehabber · Austin, TX · Member since 2016 · 39 posts · 37 votes
    8y

    That's awesome. Congrats

  • New to Real Estate · Fort Washington, MD · Member since 2015 · 38 posts · 13 votes
    8y
    @Junior Picanco That’s amazing! Congratulations to you and your family. What are your future plans for Investing moving forward?
  • Member since 2018 · 18 posts · 7 votes
    8y

    @Account Closed Hey! I appreciate the honesty.  I know I have a long way to get to where I want but very much excited to start diversifying my streams of income and not fully rely on just my job, which I actually love. I live in Denver now and I see people reaching a level of success in a short amount of time ( appreciation rate here is Crazy! ). They still work super hard and continue to hustle though. The only thing is that you need to have a lot of money to start here, unlike other places. 

  • Flipper/Rehabber · Essex County, NJ · Member since 2018 · 8 posts · 3 votes
    8y
    @Junior Picanco how much equity was built up into the first property before the cash out refi?
  • Investor · Anaheim, CA · Member since 2017 · 5 posts · 0 votes
    8y
    Originally posted by @Caleb Heimsoth:
    @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.

  • Investor · Anaheim, CA · Member since 2017 · 5 posts · 0 votes
    8y

    I agree with @Caleb Heimsoth .  I find that $600 renters are typically a disaster.  Furthermore, tenant turnover can be costly relative to the amount of rent collect.  For example, the costs associated could be $4,000 to repaint, carpet, etc. and the rent is only 600 thus you lose almost 7 months of rent on turnover plus lost rent in the time that the property is repaired.  I think you should anticipate MUCH higher costs in your analysis.  Hopefully, you end up with long term tenants.  Good luck!

  • Rental Property Investor · San Diego, CA · Member since 2018 · 242 posts · 234 votes
    8y
    @VB Phom how do you send someone a private message in this forum
  • Real Estate Agent · Pikesville, MD · Member since 2017 · 6 posts · 0 votes
    8y
    @Junior Picanco motivation, I love reading these stories. Good luck on your future success
  • Member since 2018 · 6 posts · 0 votes
    8y

    Thats amazing!

  • Real Estate Agent · Virginia Beach, VA · Member since 2017 · 20 posts · 15 votes
    8y
    @Junior Picanco Congrats buddy! Way to block out the noise and take the steps necessary to live out your dream.
  • Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
    8y
    @Claudio Valdivia thank you brother I very much appreciate it. I understand there is alot of risk, but it's a risk I'm willing to take at this point in my life as I'm only 32 I'm still young enough to recoup any losses. I've already taken quite a few but to me they're all learning experiences God bless you and your family and I wish you much continued success Junior
  • Specialist · Merchantville, NJ · Member since 2016 · 1 post · 0 votes
    8y
    @Junior Picanco thanks for this! I've been sitting on the sidelines and I'm educating myself currently. I hope to be leaving a similar message this time next year!
  • Rental Property Investor · Denver · Member since 2018 · 24 posts · 8 votes
    8y

    @Jason Graves I believe you have to connect with them first before you can send a private message. 

  • Investor / Real Estate Agent · Aurora, IL · Member since 2015 · 170 posts · 42 votes
    8y

    Congrats @Junior Soares  keep it going

  • Rental Property Investor · San Diego, CA · Member since 2018 · 2 posts · 0 votes
    8y
    @Junior Picanco

    Congratulations on the success! I am "Down the road" in San Diego. 

    The timing of your post couldn't be better, as I too am getting a lot of negativity from various places when discussing OOS investing.

    A few questions for you,

    1. What was your general criteria for selecting OOS? 

    2. Looking back, what are 3 lessons you wish you knew when you did your first deal that you now know?

    3. What resources did you use to find property? (I hear loopnet is not the best resource)

    Great to hear a positive outcome and best of luck on your continued success.


  • Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
    8y
    Originally posted by @Miguel Castillo:

    Congrats @Junior Soares  keep it going

       Thank you brother, I appreciate it. 

    Best, 

    Junior 

  • Real Estate Agent · Glen Burnie MD · Member since 2018 · 5 posts · 0 votes
    8y
    @Junior Picanco that’s awesome news! Glad to hear. I hope to mirror this throughout the next year. Are you doing this full time or carrying another “job” as well? All the best, Adam
  • Huntsville, AL · Member since 2017 · 44 posts · 31 votes
    8y

    Thanks for the post @Junior Soares! Congrats on getting some properties under your belt. I'm not there yet but appreciate the inspiration.

  • Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
    8y
    Originally posted by @Adam Chubbuck:
    @Junior Picanco that’s awesome news! Glad to hear. I hope to mirror this throughout the next year. Are you doing this full time or carrying another “job” as well?

    All the best, Adam

     Good afternoon Adam, 

     This is just part time for me as I run my business full time. 

    Best, 

    Junior 

  • Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
    8y
    Originally posted by @Michael B.:

    Thanks for the post @Junior Soares! Congrats on getting some properties under your belt. I'm not there yet but appreciate the inspiration.

      Thank you and best of luck to you on your endeavors! 

    Junior 

  • Real Estate Agent · Delray Beach, FL · Member since 2018 · 26 posts · 2 votes
    8y

    Glad to hear that your experience with Biggerpockets has been so beneficial and positive! Best of luck in all your future endeavours

  • Member since 2018 · 17 posts · 11 votes
    8y

    I'm brand new to real estate investing. Wondering how you go about purchasing rental properties out-of-state? How did you know market prices? How did you find good deals? What agent did you work with? Can I get some help? 

  • Rental Property Investor · TX · Member since 2017 · 42 posts · 26 votes
    8y
    @Junior Picanco this is awesome! I'm looking to OOS investing but skeptical bc of the lack of contacts and experience. sending you a PM in hopes to connect!
  • Rental Property Investor · San Diego, CA · Member since 2018 · 242 posts · 234 votes
    8y

    I have a day job selling software which I have done done for 19 years.  

    My goal is to have 20k a month passive income in the next 36 months.   Then move to “full time”.

  • Rental Property Investor · San Diego, CA · Member since 2018 · 242 posts · 234 votes
    8y

    I have a day job selling software which I have  done for 19 years.  

    My goal is to have 20k a month passive income in the next 36 months.   Then move to “full time”.

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