50 doors in 3 years, Help!

Buying & Selling Real Estate
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50 doors in 3 years, Help!

Tri Le
Rental Property Investor · Cincinnati, OH · Member since 2019 · 37 posts · 46 votes

Hi BP,

I figured I would appeal to the collective intelligence of my fellow investors.  

Over the last 2 years, I've built a small portfolio of single family houses, duplex, triplex, and 4plexes.  We have done BRRRs, major rehabs, short term, and long term rentals.  

After reading Vivid Vision (Great book!  Highly recommend!), I have come to the conclusion that I would like to focus my energies on scaling our business.

I have set a goal for myself to reach 50 doors in 3 years.  If the average cash flow per unit is $200, I will be financially free.  

Although there are many avenues (ie Mobile Homes, Assisted Living, etc.), I want to narrow my focus towards the purchase of a 40 unit apartment building or a combination of two 20 unit apartment buildings.  

The next step is to make a plan for the following:  

1. Finding the deal

2. then, find the lending/financing (This can be a combo of commercial lending, line of credit, private lending etc)

BP, help me develop this plan and any input is much appreciated.  We only have 30 days to organize a plan and 60 days to put the first offer!

Humbly,

Tri

  

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George W.
Investor · NJ · Member since 2018 · 869 posts · 921 votes
5y

Why not just try to increase the average monthly cashflow to require less "doors" and make the same amount of money?

Cashflowing another $100/mo would cut almost 17 units out of the picture and make the same amount of cashflow. Plus it would alleviate the stress. I'd rather deal with 33-34 units than 50 if that cashflow is gonna be 10k either which way.

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  • Shane Cloutier
    New to Real Estate · Dalton, NH · Member since 2020 · 116 posts · 64 votes
    5y

    The key point is that you can understand the plan, and that you actually made one. Now with that you can create a more professional presentation of the plan and you can use that to attracted money and associates to work with you. 

    2Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    5y

    what is your average price per unit and per rent ? what's the DSCR with 90% vacancy ?

    0Reply
  • Tri Le
    OP
    Rental Property Investor · Cincinnati, OH · Member since 2019 · 37 posts · 46 votes
    5y

    Hi Everyone, 

    I just wanted to give a weekly update on the progress.  Thank you everyone who has messaged me.  I feel that I have made more progress towards our goals after the announcement of the challenge.  

    After connecting with some of you here on BP, I've learned so much in the last 1-2 weeks.  Many are in similar investing stages, which is comforting to know that there are others walking the same path.  It has also been eye opening to hear the different approaches and perspectives to multifamily investing, which will help hone and craft my unique strategies.

    I think I'm gonna start calling my quest the MISSION Project.  

    Multifamily Investing Search Solutions to Improve Ones Net-worth.

    MISSION Project:

    Week 1:

    1. Connected with 5 brokers- Done

    2. Network with 3-5 investors- Done

    3. Specify search criteria and market for investment- 50% complete

    4. Set target deadlines- 50% complete

    5. Analyzed 5 Apartments and small Multis'- Done

    6. Spoke to network in Cincinnati about my investing goals- Done

    Week 2-3:

    1. Interview 5 investors at various stages of investing- to be completed

    2. Analyze 5 more Apartments- to be completed

    3. Narrow focus of investing and getting the mindset of saying "No" to deals that don't fit the criteria- work in progress

    1Reply
  • Tri Le
    OP
    Rental Property Investor · Cincinnati, OH · Member since 2019 · 37 posts · 46 votes
    5y

    Hi Carlos, 

    My target price per unit is 45-75k and rents $500-$1000. DSCR- 2 or higher is the target for us. Although if DSCR on subject property is lower say 1.5 and can be a value add to get to 2 or higher, then that also possible.

    My main criteria so far is location and particularly in an area with a population of 100K+ with infrastructure for employment that can sustain an annual median income of $50K+.

    Thank you for reach out!

    1Reply
  • Evan Carrico
    New to Real Estate · Louisville, KY · Member since 2020 · 7 posts · 7 votes
    5y

    Tri, your grind on the MISSION project is impeccable, keep up the hard work and I'm very excited to see your nearby success. I will be moving to Cincinnati this summer to start a full-time position where I hope to begin investing in rental properties. Your past success is inspiring and I'm eager to start a similar project one day!

    Thanks for sharing!

    -Evan

    1Reply
  • Tri Le
    OP
    Rental Property Investor · Cincinnati, OH · Member since 2019 · 37 posts · 46 votes
    5y

    Hi Evan,

    Welcome to the resistance!  Let me know when you make it into town, and we can connect.


    Tri 

    0Reply
  • Kenneth Burdick
    Rental Property Investor · Rancho Cucamonga, CA · Member since 2020 · 58 posts · 23 votes
    5y

    @Tri Le Love your ambition and action-oriented nature. I caught the real estate bug last year and have been educating myself as fast as I can. I've set a goal for myself to make my first investment property purchase by this summer and have 10 doors within three years. At the same time, you sometimes wonder if you're trying to bite off too much, but seeing others who are driven with a vision definitely adds some fuel to the tank! Wishing you tons of success and thanks for sharing your fire. Now to write out my own 30-day plan...

    0Reply
  • Douglas Patterson
    Member since 2020 · 6 posts · 3 votes
    5y

    Love the plan! Would really recommend you look into property management as well! Check out our latest podcast on the 10 ways property management can be a huge value to you! https://anchor.fm/how-i-manage...

    0Reply
  • Douglas Patterson
    Member since 2020 · 6 posts · 3 votes
    5y

    Love the plan! Would really recommend you look into property management as well! Check out our latest podcast on the 10 ways property management can be a huge value to you! https://anchor.fm/how-i-manage...

    0Reply
  • Tri Le
    OP
    Rental Property Investor · Cincinnati, OH · Member since 2019 · 37 posts · 46 votes
    5y

    Hi Everyone, 

    Just checking in.  Thank you Ken for the warm support!  I wish you the best on your journey.  There are times I wonder if the vision will materialize, but knowing that the Bigger Pockets community is here to lend support and guidance has given me hope!

    In regards to property management, this is great advice because it will free you up to focus on other important pieces of the the business like strategy and deal acquisition.  Also, PMs have insight are usually better experienced and equipt to screen and place quality tenants, which will reduce vacancy. 

    As far as an update on the hunt, we just finished furnishing and listing our Airbnb in Cincinnati.  Just in time for the 17 year emergence of the Cicadias in Cincinnati :/  Thinking of leaving some wearable  Bug Screen Pods in the AirBnB. :)

    I've connected with another investor and we are looking at small and large multifamilies.  We came close to acquiring another 4plex, but it didn't work out.  It was however a good exercise to understand each other's search criteria, and it was a sort of dress rehearsal to prepare us for future deals.  Over the last 2 weeks, we were able to have lunch with my team in Cincinnati to explore and strategize ways to hit our 3 year goal.  Partnering has opened a new doo/dimension to real estate, and I am optimistic.

    I wish I could tell you all that I put a 30 unit apartment under contract and hit my goal within a month.  Soon enough I'm sure!  

    Good luck everyone and Happy Belated Easter!


    1Reply
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