9 units in 6 months
What’s up BP.
I got a bit of a success story here kinda. Thanks to the community of course !
So I found BP in November 2018. Started studying up, grabbed some books and hit the streets! I knew I wanted multi family and a good starter home. Snagged up a duplex in December 2019( paid too much/ emotions took over ). Regardless I’m house hacking it. Has some unforeseen issues - who woulda though! I won’t go to much into details but there’s an extra 10 grand I wasn’t planning to spend worth of repairs. I’ve got it up and running at this point. Back unit tenanted( inherited ). Just had a toilet over flow yesterday but we won’t go there..
overall it's preforming well. While I'm living in it, my monthly living expenses run me roughly $1,100 including my utilities. Once I move out, which I plan to do in a year the unit will cashflow a measly $100 bucks after all expenses - PITI/vacancy/capx/maintenance/lawn care/ snow removal/sewer usage. I plan to raise rent this coming August when my current tenants lease is up in hopes of raising cashflow. I also plan to bill back for water- and require tenant to pay for their own garbage.
. February comes around, I still have the itch. I’m asking anyone I meet if they got a multi for sale and boom good old Joe comes into the picture. Older gentleman- owns 90 units in our area ( Fairfield, CT ). He just happens to be building a new multi use building down on black rock Turnpike.. needs a couple extra bucks.. construction cost went way over. So he mentions he might be interested in selling a few of his properties. He sends me to go check out two houses side by side. A 3 and a 4 family. 17 parking space lot- right on black rock turnpike ( desirable area ). Asking $850k. Appraisals came in at : $400k for the 3 family and $500k for the 4 family. Long story short. We negotiated down to $840k. I partnered up with my pops and we took them down. No renovations need. Fully tenanted with all long term tenants. Rent $100-250 below market per unit. Because all the tenants have been with this same landlord for 5,6,7,8 years plus- we signed a condition to keep the rents the same for a year out of curtesy. Since we closed in March we’ve turned over 2 units and brought them to market rent. I’m self managing all the properties as of now and am on the hunt for the next deal.
First deal not the best, 2nd deal was 100% better. I’m constantly learned everyday, although the first deal didn’t end up perfect and kinda shook me up, I still saw the true power of real estate and I encourage anyone out there who has got a deal yet, or had a deal go bad.. to keep working toward that next deal.
I’m an active agent in CT, I always work with a construction company. And I plan to keep investing in real estate with a goal to reach 100+ units and hit a few flips along the way!! Thank you for reading !
Good luck BP