Tale's from a young real estate entrepreneur

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Tale's from a young real estate entrepreneur

Kyle Vandever
Lewiston, ID · Member since 2015 · 22 posts · 2 votes

Hi everyone! 

My name is Kyle Vandever and I'm living in the wonderful state of Idaho. For the last 6 weeks I've been almost religiously reading BiggerPockets blogs and listening to (almost) any podcast I can get my hands on. 

I recently graduated from Boise State University and landed a job in marketing/media. Although this is a great job, I come from a long line of entrepreneurs and the thought of working for someone else's dream scares me a little. So I took a step back, and like any entrepreneur dove in. 

When I say dove in, I mean I started researching ways to invest. I read "Rich Dad, Poor Dad", and that hit a nerve. Later I found BiggerPockets, and have been using that as a resource on nearly all things real estate. 

So long story short, I'm a young entrepreneur at heart that has a passion in real estate. The numbers game it provides is very intriguing for me, and the opportunity for growth excites me. Below are my goals for the next 5 years:

1st Year: One Duplex Property (plan to live in one unit)

3rd Year: 2 properties owned with positive cashflow, 1 house flipped within three months. 

5th year: 5 properties owned with positive cashflow, 2 houses flipped within two months. 


I'd love to hear from you, and get your advice/opinion on starting out. I'm relatively new to real estate, but I have the passion and curiosity to learn. Thank you in advance for reading this, and I hope to hear from as many of you as possible. 

Kyle Vandever

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Joe Fairless
Investor · Cincinnati, OH · Member since 2013 · 2k+ posts · 1k+ votes
10y

@Kyle Vandevercongrats on getting started and your plan looks solid. @Jonna Weberis a great person to know in your area too. 

One tip is to look for a 3 or 4 unit so you can maximize the amount of rent coming in. Some duplexes might get more in better areas but generally speaking a 4 unit will get more income. 

And, one tip on top of that is to find a 4 unit, close on it with primary residence financing then convert it to a 5 unit. That increases your value exponentially and is something I've seen done in Cincy. 

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  • Rachelle RodaviaPro Member
    BiggerPockets Support · Manila, Philippines · Member since 2015 · 1k+ posts · 148 votes
    10y

    @Kyle Vandever

    Welcome to the BiggerPockets community!
    Best of luck with your Real Estate Investing Career.
    Glad to have you with us.

    BiggerPockets
    0Reply
  • Ryan Billingsley
    Investor/Realtor · Wentzville, MO · Member since 2014 · 846 posts · 431 votes
    10y

    @Kyle Vandever

    You have already taken the first step by finding the passion for financial freedom!  Your goals are easily obtainable.  I would 10x those goals.  It will only motivate you to work harder and achieve more.  That way even if you do not reach your new lofty goals you will have surpassed your original 5 year plan.  

    The 10x rule by Grand Cardone is a great book to motivate you!

    This site is key to working through each step in real estate investing.  Every issue you run into can be solved by utilizing this site.

    0Reply
  • Jonathan Loynaz
    Miami, FL · Member since 2014 · 39 posts · 24 votes
    10y

    Welcome to BP @Kyle Vandever!

    Being young myself and diving into real estate right out of high school, the best advice I can offer anybody when starting off is to meet as many people in the business as possible. You really have to let it consume you. Ask as many questions and bother as many investors as you possibly can. People will notice your desire to succeed and some of them will take time of out their lives to help you.

    After almost 2 years of failing on my own, I began going to meetups, REIA's, and even calling people off Craigslist. I got in touch with my now partner and in 2 months of me working with him, we've closed on 2 properties, closing 2 more this month, and have 7 more under contract.

    Good luck to you!

    0Reply
  • Jonna WeberPro Member
    Moderator
    Investor · Boise, ID · Member since 2011 · 1k+ posts · 736 votes
    10y

    Awesome @Kyle Vandever!  Hi from Boise!  Are you going to start investing in Lewiston?  I wonder how the market is there.  I have always been curious about picking up an investment in Moscow.  Welcome to BP, and thanks for introducing yourself!  

    208-608-4884Podcast Guest on Show #80
    1Reply
  • Kyle Vandever
    OP
    Lewiston, ID · Member since 2015 · 22 posts · 2 votes
    10y

    Thank you all! 

    I'll put "The 10x Rule" on my reading list @Ryan Billingsley, and I'm sure I'll end up raising the bar on my goal. 

    I really appreciate the advice @Jonathan Loynaz, it's awesome to see a fellow go-getter with a passion. I've already started the search asking other investors if they'd be available to meet for coffee. Like anything, building solid and genuine relationships is key! I'd love to keep in contact. 

    Appreciate the love @Jonna Weber and it's always nice meeting another Idahoan! I actually recently moved up to Lewiston after graduating from BSU. I'm looking into this area, Coeur d'alene, or Boise. I'm planning on being in Boise within the month, and would love to get together to pick your brain on all things real estate. Coffee on me!

    0Reply
  • Joe Fairless
    Investor · Cincinnati, OH · Member since 2013 · 2k+ posts · 1k+ votes
    10y

    @Kyle Vandevercongrats on getting started and your plan looks solid. @Jonna Weberis a great person to know in your area too. 

    One tip is to look for a 3 or 4 unit so you can maximize the amount of rent coming in. Some duplexes might get more in better areas but generally speaking a 4 unit will get more income. 

    And, one tip on top of that is to find a 4 unit, close on it with primary residence financing then convert it to a 5 unit. That increases your value exponentially and is something I've seen done in Cincy. 

    2Reply
  • Kyle Vandever
    OP
    Lewiston, ID · Member since 2015 · 22 posts · 2 votes
    10y

    Thank you @Joe Fairless! I'm definitely looking for a multi-unit property that I'll use to live in also. What exactly do you mean when you say convert it to a 5 unit? I'm curious..

    0Reply
  • Joe Fairless
    Investor · Cincinnati, OH · Member since 2013 · 2k+ posts · 1k+ votes
    10y

    @kyle 

    @Kyle VandeverI mean if there's a way to convert the basement, attic, garage, etc to another unit then that would add a lot of value to your property. Need property approvals plus need to make sure it doesn't take away from current amenities 

    0Reply
  • Cody Stone
    Investor · Boise, ID · Member since 2015 · 218 posts · 107 votes
    10y

    Welcome to BiggerPockets @Kyle Vandever! I too have become obsessed with the site here and have become like a sponge soaking up knowledge. If you haven't already, check out Joe's "Best Real Estate Investing Advice Ever" show. You will find it chock full of wisdom. It's absolutely incredible how much help there is out there today for people willing to do what it takes to invest in real estate. It's an amazing time to be alive!

    You are on a great path to living you life on your terms by house hacking a 2 or a 4 unit for your first investment. One of the best ways to build long term wealth is with buy and hold residential real estate. Plus you will be getting a lower interest rate loan and lower down payment by living in one of the units as you know. My wife and I are considering that as well, or we will be doing a live in flip soon. 

    When you make it down to the Boise area make sure to catch some of the local REIAs. Jonna hosts the informal BP meetups here in the valley and they are fun and friendly.

    See ya around.

    0Reply
  • Kyle Vandever
    OP
    Lewiston, ID · Member since 2015 · 22 posts · 2 votes
    10y

    Thanks for the advice @Cody Stone! I'm to the point where I just want to get my first deal done, but I know researching is invaluable to making good deals. I'd love to make a trip down for one of these informal BP meetups @Jonna Weber, please let me know.

    2Reply
  • Elizabeth Colegrove
    Hanford, CA · Member since 2013 · 5k+ posts · 1k+ votes
    10y

    Congratulations!

    That is how we got started! We bought our first house with a VA loan. Than from there we slowly through baby steps and lots of remembering this is a marathon not a spring built our empire.

    Good luck you got this!

    0Reply
  • Kyle Vandever
    OP
    Lewiston, ID · Member since 2015 · 22 posts · 2 votes
    10y

    Thanks @Elizabeth Colegrove! 

    Isn't it difficult being patient when you just want to do big things within real estate. At least the ball is rolling. 

    Good luck to you! 

    0Reply
  • Elizabeth Colegrove
    Hanford, CA · Member since 2013 · 5k+ posts · 1k+ votes
    10y
    Originally posted by @Kyle Vandever:

    Thanks @Elizabeth Colegrove! 

    Isn't it difficult being patient when you just want to do big things within real estate. At least the ball is rolling. 

    Good luck to you! 

     Oh yes!!!I have gotten very inpatient over the years at times. The thing I have reminded myself that getting your ducks and a rows and systems in place is very important. if you keep at it, and keep trying it will get you there quicker than you ever imagined. If all goes right in the last 6 months we will have bought 4 houses which has previous took us 4 years to buy 5 houses. Just keep at it. It will ebb and flowing but if you work your plan it will work, even if it is in a way you never imagined.

    0Reply
  • Jonna WeberPro Member
    Moderator
    Investor · Boise, ID · Member since 2011 · 1k+ posts · 736 votes
    10y

    @Kyle Vandever - will do!  Next meet up will be the beginning of February.  

    208-608-4884Podcast Guest on Show #80
    0Reply
  • Nathan Carter
    Rental Property Investor · Boise, ID · Member since 2014 · 49 posts · 36 votes
    10y

    @Kyle Vandever -- Kyle it sounds like you have a solid plan for the next few years.  My only comment is to watch how much leveraged debt you take on in your first few years of starting out.  First, because you will get better at finding deals after you have done it for a few years and made the mistakes we have all made.  Second, real estate prices are getting higher after several years of strong appreciation, including in the Boise area.  You may see a cooling off on prices which will provide better opportunities to buy.  Personally, I also like to make sure my numbers work and that I am able to cover payments even if I face a few months of vacancies.   All the best as you get started!  Nathan 

    0Reply
  • Kyle Vandever
    OP
    Lewiston, ID · Member since 2015 · 22 posts · 2 votes
    10y

    Thank you @Nathan Carter. I really do appreciate your advice and I'm learning that, like anything, experience is the absolute best teacher. I'm doing my homework and analyzing 3-5 deals a day to better my understanding of REI as a whole. I'm starting to form a more solid business plan, and working to create investing strategies. I'm itching to get started, but understand the importance creating a solid foundation by not over extending myself.

    From my understanding, like most markets, Boise is hot and I'm constantly keeping an eye on housing prices. I'm staying patient, but don't want to be paralyzed by analyzing. Any advice on that? Kind of threw it all out there for you. Just looking for advice. 

    Thanks in advance! Kyle  

    0Reply
  • Nathan Carter
    Rental Property Investor · Boise, ID · Member since 2014 · 49 posts · 36 votes
    10y

    Hi @Kyle Vandever 

    It is very smart of you to analyze a few deals every day, as it will help to recognize a true deal when it presents itself.  Personally, I like the househacking approach of buying a property and getting a roomate or two to help pay the mortgage.  Use this time to build up a cushion of extra cash cushion to be able cover the full mortgage payment on your place for three months.  Once you have these reserves and a sufficient downpayment you can pick up your next property and repeat the cycle.  When you decide to move out and buy your next property, the existing tenants can either cover the balance of the rent or find a new roomate (vetted by you of course) to fill your spot.  Buying a property that needs work is also a great way to create some value as well.  It can help you create even more value using the strategy above.

    I like to buy properties closer in to the town center with shopping and good schools.  I think of neighborhoods like rings on a tree, the rings further out get hit worse in a down turn as people move closer in to better neighborhoods that are more walkable to restaurants and good schools.  It is also easier to find renters as they move in to better neighborhoods when there is an increase in rental options. 

    I acknowledge the approach of many in the BP community to buy properties aggressively,  but we opted to go slow on our first three properties and paid them off in full.  A big factor for this approach was that we were heading in the housing bubble and the numbers no longer seemed to make sense to us so we stopped buying.  Someone gave us great advice and said if you would never purchase properties at current prices, you might want to become a seller.   We followed this advice and sold two properties near the height of the bubble. This provided the cash to finance the next few properties after the market crashed.    

    I definately think there are good properties in the Boise area and you can find some good deals, especially if you are being diligent like you mentioned and running the numbers everyday on properties. Just make sure you have solid tenants and the cash reserves before you leap into your next deal, so you are able to weather any market downturns.   

    I have written a few detailed posts on my BP blog about how we started out and different types of passive income if they might be of interest to you. Good luck on your plan and let me know if you have any questions, it sound like you are going in to REI with your eyes open and you are asking the right questions.

    Cheers,

    Nathan

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