I Made Seven Figures on My First Portfolio Deal Part Time
Hi Guys,
I'll keep it brief, but wanted to document my success below while the numbers are still fresh in my mind. I'm actively looking for a new off-market multi-family deal and also looking for private lenders for my next multi-family venture, so please message me for opportunities if interested.
I made 7-figure profit off some deep value-add properties on the side (while working a full time job) with a portfolio deal I purchased in 2019. Below are the details.
Details:
Before this portfolio deal, I only owned a couple rentals. This portfolio of properties were off-market 19 total units in a D neighborhood. During my walk-through, there was an ongoing murder investigation on one of the units with police presence. Some subcontractors refused to give me a quote after visiting the properties. Half of the properties were abandoned or vacant for several years. There were zoning violations and weird subdivisions. It was a scary deal from an economic and safety standpoint. But I was hungry and with the support of my wife and a good team in place, I was determined to stabilize the street, clear the zoning violations, put qualified tenants in, and work with the police department to clear out any criminal activity. Two years later, the street is clean, safe and I've realized $691,640 in sales profits and $617,000 in equity I retained with the buildings I decided to keep. Below are the numbers.
Numbers:
1.
Property Type: SFH
Purchase Price: $24,000
Rehab Costs: $33,300
Sale Price: $155,000
Seller Credit: $0
Realtor Fees: $7,500
Net Profit: $90,200
2.
Property Type: Duplex
Purchase Price: $24,000
Rehab Costs: $$51,300
Sale Price: $175,000
Seller Credit: $2,000
Realtor Fees: $8,750
Net Profit: $88,950
3.
Property Type: Duplex
Purchase Price: $24,000
Rehab Costs: $41,000
Sale Price: $175,000
Seller Credit: $2,000
Realtor Fees: $8,750
Net Profit: $99,250
4.
Property Type: SFH
Purchase Price: $27,500
Rehab Costs: $33,000
Sale Price: $155,000
Seller Credit: $2,000
Realtor Fees: $7,750
Net Profit: $84,750
5.
Property Type: Duplex
Purchase Price: $24,000
Rehab Costs: $41,000
Sale Price: $179,200
Seller Credit: $0
Realtor Fees: $8,960
Net Profit: $105,240
6.
Property Type: Duplex
Purchase Price: $24,000
Rehab Costs: $43,000
Sale Price: $200,000
Seller Credit: $17,500
Realtor Fees: $10,000
Net Profit: $105,500
7.
Property Type: Duplex
Purchase Price: $24,000
Rehab Costs: $38,000
Sale Price: $190,000
Seller Credit: $750
Realtor Fees: $9,500
Net Profit: $117,750
I decided to keep the remaining 7 doors from this portfolio as cash-flowing rentals. The 7 doors are collectively valued at $720,000 and only have $103,000 worth of debt on them (which means I have $617,000 worth of equity in the properties).
TOTAL SALES NET PROFIT: $691,640
TOTAL EQUITY IN REMAINING PROPERTIES: $617,000
TOTAL PROFITS + EQUITY: 1,308,640
Happy to take any questions.
This is fantastic, I am inspired! Congrats!
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#2 All Forums Contributor
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atta boy keep it up.
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Find something that works for you and keep doing it!! Congrats!
that is awesome! sounds like you ended up revitalizing an entire block? was it on the edge of a gentrifying neighborhood?
This is amazing! Congratulations and cheers to you for not stopping just because others didn't see the vision!
@Tony S., great job.
A couple of questions that may help other readers with some more context:
What year did you buy these (was it 2 yrs ago? so 2020)?
How did you finance these properties and rehabs?
Are you planning to cash out the equity to invest in other deals or 1031?
Thanks
Quote from @Sergey A. Petrov:
that is awesome! sounds like you ended up revitalizing an entire block? was it on the edge of a gentrifying neighborhood?
This was a bad street with an open-air drug market on the edge of a neighborhood that showed beginning signs of gentrification (about 15%-25% of the neighborhood was gentrified at the time I was looking). I nearly bought a whole street. Once I rehabbed these buildings inside and out, additional investors came in and built new construction homes and rehabbed almost all of the remaining buildings on the street. There are still 1-2 isolated problem houses remaining on the street to this day, though the police department is keeping a close eye on them.
Quote from @Tony S.:
Hi Guys,
I'll keep it brief, but wanted to document my success below while the numbers are still fresh in my mind. I'm actively looking for a new off-market multi-family deal and also looking for private lenders for my next multi-family venture, so please message me for opportunities if interested.
I made 7-figure profit off some deep value-add properties on the side (while working a full time job) with a portfolio deal I purchased in 2019. Below are the details.
Details:
Before this portfolio deal, I only owned a couple rentals. This portfolio of properties were off-market 19 total units in a D neighborhood. During my walk-through, there was an ongoing murder investigation on one of the units with police presence. Some subcontractors refused to give me a quote after visiting the properties. Half of the properties were abandoned or vacant for several years. There were zoning violations and weird subdivisions. It was a scary deal from an economic and safety standpoint. But I was hungry and with the support of my wife and a good team in place, I was determined to stabilize the street, clear the zoning violations, put qualified tenants in, and work with the police department to clear out any criminal activity. Two years later, the street is clean, safe and I've realized $691,640 in sales profits and $617,000 in equity I retained with the buildings I decided to keep. Below are the numbers.
Numbers:
1.
Property Type: SFH
Purchase Price: $24,000Rehab Costs: $33,300
Sale Price: $155,000
Seller Credit: $0
Realtor Fees: $7,500
Net Profit: $90,200
2.
Property Type: Duplex
Purchase Price: $24,000Rehab Costs: $$51,300
Sale Price: $175,000
Seller Credit: $2,000
Realtor Fees: $8,750
Net Profit: $88,950
3.
Property Type: Duplex
Purchase Price: $24,000Rehab Costs: $41,000
Sale Price: $175,000
Seller Credit: $2,000
Realtor Fees: $8,750
Net Profit: $99,250
4.
Property Type: SFH
Purchase Price: $27,500Rehab Costs: $33,000
Sale Price: $155,000
Seller Credit: $2,000
Realtor Fees: $7,750
Net Profit: $84,750
5.
Property Type: Duplex
Purchase Price: $24,000Rehab Costs: $41,000
Sale Price: $179,200
Seller Credit: $0
Realtor Fees: $8,960
Net Profit: $105,240
6.
Property Type: Duplex
Purchase Price: $24,000Rehab Costs: $43,000
Sale Price: $200,000
Seller Credit: $17,500
Realtor Fees: $10,000
Net Profit: $105,500
7.
Property Type: Duplex
Purchase Price: $24,000Rehab Costs: $38,000
Sale Price: $190,000
Seller Credit: $750
Realtor Fees: $9,500
Net Profit: $117,750
I decided to keep the remaining 7 doors from this portfolio as cash-flowing rentals. The 7 doors are collectively valued at $720,000 and only have $103,000 worth of debt on them (which means I have $617,000 worth of equity in the properties).
TOTAL SALES NET PROFIT: $691,640TOTAL EQUITY IN REMAINING PROPERTIES: $617,000
TOTAL PROFITS + EQUITY: 1,308,640
Happy to take any questions.
Congratulations! Great job.
Quote from @Percy N.:
@Tony S., great job.
A couple of questions that may help other readers with some more context:
What year did you buy these (was it 2 yrs ago? so 2020)? I bought these Mid-2019 and finished rehab by early 2020.
How did you finance these properties and rehabs? I seller financed 66% of the purchase price and gave the seller a second priority lien on the properties. I took out a private loan on the rehab and gave the private lender first priority lien on the properties. I only brought $80,000 cash into this deal. After I rehabbed all the units, I refinanced within 10 months to pay back my private lender, the seller, and to pull all my money out.
Are you planning to cash out the equity to invest in other deals or 1031? Yes, I'm currently in the process to get a Line of Credit/HELOC on the paid off properties to scale up into bigger multi-family deals.
Thanks
This is the power of real estate! And helping a community! Congrats you should feel very proud
Was this in Charlotte?
Also interested to hear how you funded the purchases and rehab?
-
Real Estate Agent Virginia (#0225255758)
- 757-235-0369
- http://jacobsloop.1stclassre.com
- [email protected]
Quote from @Jacob Sloop:
This is the power of real estate! And helping a community! Congrats you should feel very proud
Was this in Charlotte?
Also interested to hear how you funded the purchases and rehab?
This deal was a 30 minute drive outside of Charlotte uptown.
I seller financed 66% of the purchase price and gave the seller a second priority lien on the properties. I took out a private loan on the rehab and gave the private lender first priority lien on the properties. I only brought $80,000 cash into this deal. After I rehabbed all the units, I refinanced within 10 months to pay back my private lender, the seller, and to pull all my money out.
Well done! A giant creative finance BRRRR...and you fixed up an entire city block sounds like
-
Real Estate Agent Virginia (#0225255758)
- 757-235-0369
- http://jacobsloop.1stclassre.com
- [email protected]
