How many properties/units do you have?

Question

Linda Weygant · Answer

I guess my thought is that it kinda doesn't matter where everybody else is.  You are where you are and looking at yourself as "behind" is only going to demotivate you.  Neither life nor real estate investing is a race or a competition.  Go at the pace that is best for you, make the decisions that work for you.  It doesn't matter if your first property is at 18 or 80.

Sharad M. · Answer

I was 27 when I bought my first property and I am 32 now and I own enough free and clear properties to retire on.

I will tell you one thing that helped me grow. I made it my # 1 goal to save and reinvest. My wife and I live on lower of 2 incomes and save and invest the higher one. That's what we started with and we have stuck to that mantra to this day and it has worked really well for us. We reinvest everything we get from real estate income into more properties.

I love this quote from Albert Einstein.."Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it."

Jerry W. · Answer

I had bought several houses, my first was our family home from my dad when he got behind on payments, I was maybe 18 or 19, I never lived in it after that, but thought I might at the time.  When I sold that house I used that money to get married and to help get me through a few years of college.  The first house I bought purely for investment, I was mid thirties.  I am now mid fifties, the numbers I have are complicated, lets say 25 to 30 doors.  I have some joint venture ones, some I am a silent partner in, some I am not so silent.  Gross income, wow that is tough, lets say $120K per year, profit is more difficult to estimate;  I probably make or lose about one or two thousand a year on the average.  I have a bad habit of fixing up properties if I have money.

I live off my day job income, and buy with 15 year loans so they don't cash flow very much. but looking at the principal pay down each month is cool.  One loan in particular currently pays down over $1,100 per month just to principal, and the amount paid to principal increases every month.  I look forward to the day that $2K payment drops into my pocket every month not the banks.  In fact maybe I will plan my retirement around that payoff.

Kyle Hipp · Answer

I bought my first duplex at 21, lived in the lower and rented he upper. I gained the confidence to work on properties with that duplex. Since then I got married, had a child with another one on he way any day now. We moved to a single family home just over 2 years ago and are just about done pouring money into this house to have it be how we want it. Upon purchasing my 4th property at 25-26, I partnered with my father. That was their first investment property and they have gotten several more since then as well. I am now 29 with 16 units (manage 19 units which includes a 3 plex for my folks which is down the road from my house) plus our home over 8 properties ranging from single family to a 6 unit. The 6 unit was a new purchase last October and this year should gross around 6 figures. Schedule e shows a profit around $4k - $5k. All my properties are on 15 year notes as I plan to retire from employment by age 40 at the latest (shooting for 35). I primarily purchase run down properties and force appreciation by fixing them up  providing fantastic service. My last couple purchases have been on land contract.

Ryan Kinley · Answer

@Sharad M. That was an awesome quote

Paul Ewing · Answer

I have five myself at 43 and I do everything but showing, lease signing, and rent collection for my parents four properties (those require a license in TX as a non-owner).  I bought my first at 40.  I plan to have at least a dozen properties in the next 4-5 years or sooner.  I really wish I had started when I was in my 20s like I had thought about, but life happened and I can't say I am totally disappointed since it allowed me to see the world.

Matt Maurice · Answer

I bought my first duplex when I was 18, second when I was 19 and third when I was 22... and NONE of that matters.  Unit count is only useful at the bar, the best time to start was 20 years ago, the next best time is today.

You have a TON of stuff going on between different debts, kids, full-time work and vacations.  Daycare expenses will go away, but other hobbies and expenses creep there way in real quick!

My suggestion?  Make your goal a financial one, not a door count one.  If you are using real estate to become financially independent, your bank account won't care how many checks get deposited just how big they are.  Additionally be patient, do your research and find the right deal.  The absolutely WORST thing that can happen is sacrificing family time because of a property purchased unprepared (the wholesalers on BP would love to buy it when you are fed up).  I beleive real estate is the best way to build wealth and achieve financial freedom, but it's far from the only way.  Also, make sure you are allocating your capital to the right places, sometimes eliminating high-interest debt can be more impactful to your financial goal, not to mention gratifying.

There are a ton of posts on 15 vs 30-year amortizations, and they can get pretty heated!  I'm in the 15-year camp and beleive the only real way to live stress-free is to not owe a nickel to anyone.  Leverage up to grow your portfolio, then aggressively and unapologetically pay off that debt as fast as possible.

Josh Dillingham · Answer

@Jennifer Fernéz I bought my first rental at 30 and have 9 units now at 33. I earn about $90,000 in gross rents and $25,000 after expenses. I work full time and manage my own properties and do my own repairs so I can keep saving for more properties. My goal is to have 20 units and make $50k per year after expenses which would give me the ability to stop working full time if I wanted to.

Tariq B. · Answer

Hey there!

I bought my first house when I was 21, the second I closed on it I had friends lined up ready to move it two friends paying $500 each..mortgage was only $540 at the time. It was at that moment that I realized how easy being a landlord was, so naturally I was hooked. I am now 23 and have an offer in as we speak on my 4th property. I have one already paid off! Make a plan like it sounds like you have and try and find your niche.

Wayne Smith · Answer

I am 48 and bought my first house when I was 37.  I turned that into a rental and started buying more.  I had 14 at my highest point, and now own 11.   As far as 15 or 30 year notes, it is a personal choice.  I am looking to pay all my properties off, so I don't take profit from them to fund my personal spending.  I use the money to pay down the debt.   I will be paying off 3 houses next month and looking to pay everything I own off in 3 years.  two years ago I sold a newer model truck and a motorcycle I owned so I could pay off  my debt quicker and "retire" from my day job and work on flipping houses.  Good luck with your investing and its all about what works for you and what your goals are.

How many properties/units do you have?

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