What properties did you buy in 2020?
With just a few weeks left in the year, it's likely that I'll end 2020 having made no purchases. I only began looking in earnest in late October, so I don't feel too bad about it, but I'd love to hear about what YOU purchased this year.
What was your goal for the year?
How many purchases did you make? What was the property type and the investment strategy (wholesale, flip, buy and hold, etc)? Where are they located?
Any details you can share about the deals? Purchase price, cash invested, sale price or ARV, rent, financing
Any finally, did any professionals help you with this deal that you would recommend to others? Realtor, lender, title company, contractor, PM, etc
I created this topic in the Fayetteville forum, but I'd love to hear about any deals in Northwest Arkansas: Rogers, Bentonville, Springdale, Centerton, etc
@Jennifer Schelkopf
I set a goal to purchase 25 units this year and ended up purchasing 78 units. Next year is looking even better!
@Jennifer Schelkopf
I bought 2 duplexes this year in Columbus OH.
My goal is to have 30 unit by 30 years if age.
My suggestion for anyone getting started is to house hack! The entry cost are so low on an owner occupant loan that it helps to get your foot in the door and grow.
That 25% down on inv properties will tie up cash quickly and you'll need to do some creative financing strategies most likely.
Originally posted by @Brock Mogensen:We bough several deals this year, which ended up being in multiple asset classes. Office, retail, industrial, and multifamily. Going forward multifamily, industrial, and self storage are asset classes that I am going to focus on.
You won't regret moving into the self storage space. I've focused on that solely since 2011 and it just keeps getting better (regardless of the greater "market" conditions! Because success in storage is so dependent on "micro" market conditions, the national headlines mean very little to our success in this industry (assuming we do it right).
I bought my first rental this year. I was able to buy it owner finance with $0 down 4% intrest with a 5 year balloon. I had to put just under 2k in rehab. I should have enough built up from the rental income to have a down payment for it by the end of next year.
I was also able to get my first flip this year. I have a couple that I am partnered with. They front all the cash for purchase and rehab. I do about half the repairs as I have worked in construction for the last 17 years. I get 1/3 of the profits with our deal. We finished the home 2 weeks ago and it sold before it even hit the MLS. We close January 15th. It is nice as in about 240 hrs of work to finish this house and I will get a check for almost half of my current yearly salary. We have another house already that we will start after a Christmas break and we plan to do at least 2 more next year. I am also planning on finding two more houses this next year that I will BRRRR.
I purchased a 6 unit, a 4 unit, a double, and a single-family home. I just sold that 4 unit and 6 unit for a huge profit and am 1031ing into an apartment building that will close next week. These purchases were in Columbus, Ohio.
@Arta Montero one is in Killeen Texas where I am and the other 2 are in Lawton Oklahoma about 4 hours away from me.
I bought 5 more sfh's in 2020 to add to my portfolio. It's tough to fight off the REIT's paying cash for properties as they are willing to operate at a lower COC return than I am. But I guess if you are buying in an area when there are REITs, then that probably means you're investing in the right area. If I created a fund and/or raised private money, I know I would be getting at least another 3-4% return or more for my investors than they currently are. Maybe some day. Anyhow, I'm looking to buy another $1.5 to $2 million more worth of houses or possibly even an apartment complex if competition continues to subside in that space although that would be new to me. I think we'll have another 6-9 months of favorable interest rates and then we'll see them start rising and affecting cash on cash returns. For the liquid investors, if there's a gap we can hit where the rates are still low while the market corrects, it could be good but I have a feeling that'll be a short window. We'll see.
Purchased 3 flip properties. Garland, Rowlett, Bridgeport. Did ok on each. Sold a 4-plex flip in Fort Worth. Bought my personal home, remodeled it and made my prior home a rental.
I am looking hard for brrr and flips in North Texas.
We bought a SFR in March and then got held up on the rehab for a few weeks with the COVID shutdown. Finished Rehab and rented August 1st. We bought my dad's house from his estate July 27th and rehab'd it. Moved in 3 weeks ago. Now we are rehab'ing the duplex we moved out of. New windows are supposed to arrive Feb 1st and we should be ready to rent both sides by March 1st. Now we're looking for our next property.
That sounds like an incredible year @Remington Lyman. How were you able to fund so many purchases so quickly? Was this a combination of house hacking and personal savings? Or also using some hard money?
Can you elaborate more on your second purchase, especially regarding the mortgage comment. Thanks
Originally posted by @Tesho Akindele:That sounds like an incredible year @Remington Lyman. How were you able to fund so many purchases so quickly? Was this a combination of house hacking and personal savings? Or also using some hard money?
commercial debt and personal savings
@Mike Freeman So the seller of the building sold the property to me and acted as the bank essentially. The deed transferred to me, and they created a mortgage against the property in the amount of 65k one a 30yr amortization schedule with a 5 year balloon payment, but gave me an option to renew every 5 years until I refinance or it is paid in full. They originally were to have the place all fixed up before I purchased it, but were having trouble with laborers and asked if they gave me 6k if I would fix it myself. It's only going to cost me about 4,500-5k to fix up so I took them up on their offer. First unit is done and 2nd unit will be done before Jan 1st
@Brandon Penn Thanks
@Jennifer Schelkopf
Hey Jennifer,
I bought a single family house in 2020. I had the goal to buy my first property this year and to get roommates to house hack it.
As far as my strategy goes I planned to buy and hold. I bought a brick home in Cartersville GA.
I paid $152,000 for a 3 bed 2 bath with a bonus room in the basement that I converted to a bedroom by adding a walk in closet. It appraised $178,000 on the day of closing.I've been renovating/rehabbing the property as I go along. I added a deck pad in the back, replaced the old shed out back, and changed a nasty old carpet for a wooden floor in one living room.
Next week I'm getting the foundation ankered and straightened out (I have a feeling that I got taken for a ride on this one 🤔) and im also getting a new roof at the beginning of the year.
I spent:
1) Aquisition costs $5,600
2) Holding costs $6,461
3) Rehab: $24,000 (I probably could've waited on this)
4) Repairs: $500
I've made:.
1) Rent $7,000
2) Utilities: $2,000
3) Appreciaton: $35,000
So far I haven't lost a dime. The numbers still make sense 😉. I live in it for free so I can afford to pay for the reno.
I'm very new at this and it's very stressful at times, but I've learned a great deal during the past 7 months of homeownership, landlording, and dealing with contractors. My main reason to do this deal was to learn the cost of repairs and the hassle of the real estate business.
In 2021 my goal is to aquire two more properties, polish my landlord skills, and learning to negotiate with contractors. I also plan on spending half or less than what I've spent this year and gaining twice or more than I've made, but I feel held back by personal debt and a job that pays very well, but rarely allows me the time to work on my business. Before the end of 2022 my goal is to have a job that gives me the opportunity to learn more about real estate and allows me more time to work on my own business.
Great question Jennifer. I bought a 4plex and increased to owning 9 doors last year. I am aspiring to learn more about note investing and increase to 30 doors by 2022.