10 doors bought or sold in 7 months

10 doors bought or sold in 7 months

Rental Property Investor · Springfield, MO · Member since 2017 · 266 posts · 312 votes

The wife and I had been trying to move from Tulsa Ok to Springfield Mo . We have family in the area and wanted to be closer to them. We had two rentals in Tulsa and good jobs but no prospects for work in Springfield. Then, the Friday before Christmas, my neighbor approached me and asked if I wanted to sell our house to his mother. Wife and I talked it over and thought this might be our chance. 

They made a cash offer higher than appraised value (not much higher) and I wrote up a contract (selling it as is). Then it hit us, we had sold our house and didn't have one to move into and were moving in 6 weeks and neither of us had a job lined up. We started to regret our hasty decision.

We spent two weeks of Christmas break traveling back and forth to Springfield looking at houses. Nothing caught our eye and we were pretty low. On our way out of town we passed a house with a for sale sign. First thing we noticed was roofers putting on a new roof. We stopped and talked to the old lady who lived there. Her husband had died 8 weeks earlier and she was moving into a retirement center. The house was in great shape and in a good neighborhood. We offered asking price which included appliances and an awesome woodworking shop plus some minor repairs. We owned our house out right and the neighbor's mother paid cash. We made 40K after selling and buying the houses in February. (doors 1 and 2 bought and sold).

By chance I met an older couple looking to sell some of their duplexes in the Branson area. The duplexes all had long term renters paying $600.00 per month. 1400 sqf per side with 3 bd and 2 bath per side. We hit it off from the start and made a deal to buy 5 duplexes for 500K. In April we bought the first one with monies from the sale of our house. ( doors 3 and 4). In May we sold one of our rentals in Tulsa and using a 1031 we bought our second duplex (doors 5,6 and 7). 

In July, we get a contract on the last Tulsa house and using another 1031 bought another duplex (closing the end of this month) (doors 8,9 and 10).

Summary: We have been in Springfield for 7 months and a lot has happened. My wife got a great job teaching nursing at Missouri state univ. I am fully retired and working on the duplexes, plus our house and getting ready to buy the last two duplexes (another 4 doors) by the end of this year. I had previously picked up a mobile home here (I guess that's another door). We have been blessed that every door sold was profitable and every door bought has increased our income. A special thanks to @Dave Foster for his guidance and expertise in guiding us through the 1031 process. Also thanks to Bigger Pockets, I would not have been able to navigate this awesome journey without the guidance and support of all the kind and wonderful people on here! Blessings to all.

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Dave FosterBusiness Member
Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
7y

@Guy Yoes, Appreciate the shout out.  But you're the rock star - You just moved to a different geography (with better fishing), into better cash flow, set yourself up for retirement, and did it without paying any tax using the 1031 exchange.  

I call that a home run

The 1031 Investor5137 Reviews
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  • Attorney · Sacramento, CA · Member since 2014 · 300 posts · 172 votes
    7y

    Congrats on taking the leap!

  • Rental Property Investor · Springfield, MO · Member since 2017 · 266 posts · 312 votes
    7y

    @Account Closed

    Thanks!

    I'll post again when I complete the last sales.

  • Rental Property Investor · Los Angeles, CA · Member since 2019 · 112 posts · 38 votes
    7y

    @Guy Yoes

    Yes congratulations to you both!!!and wow!! I'm new to this site and you just made it even more exciting and hope that's how it will work for me by the way I'm Originally from Missouri so good luck

  • Rental Property Investor · Los Angeles, CA · Member since 2019 · 112 posts · 38 votes
    7y

    @Guy Yoes

    Kudos to you I'm 56 and I was worried about being the oldest one on this form lol

  • Rental Property Investor · Springfield, MO · Member since 2017 · 266 posts · 312 votes
    7y

    @Gina Cardarella

    The great thing about BP is that age and experience are irrelevant. No one judges you by where you are in your journey. We are all equals in learning. We give, we take and we grow.

  • Rental Property Investor · Springfield, MO · Member since 2017 · 266 posts · 312 votes
    4y

    It's been been 2 1/2 years since I made this post. First, I would like to thank everyone who encouraged and supported me as I started my REI journey.

    Tomorrow I will add another milestone to my journey. Two weeks ago I bought my 5th duplex. That was the goal I set out to achieve when I moved to the Branson area from Tulsa. I turned 60 this year and thought I'd ride out the next 5-10 years just managing my 5 duplexes and enjoy my semi-retirement of managing my properties. I had worked hard to get them almost paid off. I bought them right, added value and created a very decent cash flow. 

    I was raised by parents who eschewed debt of any kind. Dad's motto was " a debt free man is owned by no man".  I still believe that is somewhat true. HOWEVER, spending time on BP has lit in me a fire to not only create wealth for me but also for my children. I realized that what worked for my father may not work for me. 

    A unique opportunity came along this past spring and my REI investing juices started flowing again. My mentor had a terminal illness and asked me to manage his properties when he passed. He gave me a lease to own contract on his last three duplexes (all on the same street as mine). I had enough equity in my other properties to get a loan for the 3 duplexes. That however would reduce my nice cash flow.

    After a few conversations with my wife/partner/advisor we decided to act on the opportunity. The first thing I did was contact @Dave Foster who had helped me with several 1030 exchanges when I started buying duplexes in 2019. Dave at ERG helped me understand the whole process and we created a step by step plan to make the project happen.

    We decided use my 4th property which had enough equity to purchase all three duplexes at once with zero out of pocket costs to me. After running the numbers (not once or twice but three times) my net rental income for the 3 duplexes would be slightly over $2000 a month.

    Property sold: paid $110K  monthly / rent $1300 / appraised value 158K / Sale price $153K  Profit $70K

    Properties bought (3)  paid $300.000 / Appraised value $495K / rent $4000 / cash flow $2184 monthly

    Out of pocket costs: 0.00

    Recap: over two years I bought 5 duplexes. This month I sold one and bought three using a 1031 with the help of @Dave Foster.

    Bonus: Because of the 1031 I had enough funds to purchase another duplex on the same street as my other duplexes.   

    Bigger Pockets and people like Dave Foster have changed my life. If a 60 year old man can do it, so can you!

  • Dave FosterBusiness Member
    Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
    4y

    Folks @Guy Yoes, has made some very savvy moves.  I've been begging him to tell his story to BP nation.  It's the perfect use of the 1031 exchange.  Way to go Guy!!

    The 1031 Investor5137 Reviews
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