I’m currently 18 years old and going to be buying my first property when I’m 19. After that I plan on trying to get at least 1 property per year and expand my portfolio enough to retire in my 30s.
I will be 29 this September and I have 18 units. All are in a partnership that I have 50% ownership of. Started two years ago with a three SFH. All mine are SFH except for one duplex. Hoping to continue the growth and be at 40 units by 32.
@J. Mitchell Bernier how did you find a partner? Why did you decide to go that route?
-LP on 16-unit multifamily
Current age: 30
Started at 28 by converting primary resistance to a rental when I moved out.
Interested in 1-4 units that I can either tackle myself or with a partner in the Durham, NC or Johnson City, TN markets (100-250k) or larger multi-family JVs or syndications anywhere but Fl, Ca, and northeast US.
@Ryan Hazelwood My partner is a longtime friend and fraternity brother from college. I started out on my own and bought the first 8 and then decided I wanted to scale up so he was someone that thought like minded and we have always worked well together. Plus we compliment each other very well
I'm 36 now. Own 3 rentals, all SFH's technically but actually rowhouses all in a major city in the East Coast.
My first one, I bought when I was 28. It's a rowhouse that was newly flipped, and the seller created an entrance for the basement. Owner occupied mortgage, I did a VA loan for 445K so zero downpayment. So from day 1, I didn't think of the basement as my own unit but strictly rental. The rental for it was paying 65% of my mortgage. It's almost legally separated now so renting the upstairs to 1 tenant (now a 3-BR/1.5 BA) I got rid of a bathroom and converted it back to a bedroom since it rents for much higher, and the basement (1BR/1 BA) to another tenant.
2016 - I bought a fixer upper that needed work. Updated it through the year and a half we lived in it (updated the kitchen, added central heating/cooling, redid the floors myself). The house is YUUUUGE (almost 3000 sf and is 4 BR/2 BA), and has a basement that I was planning on concerting it to a rental unit as well. Bought it for 600K (which is actually cheap shockingly in the city), with 5 % down as a conventional loan. Rented it out eventually since it'll cash flow much more than us living in it. The rent is 142 % of my mortgage currently. I self-manage currently.
2017 - bought a 3rd house I should have moved in vs flipping. It cost me money since I was going back and forth with the drawings as to move in it or reno/sell. Actually took a loss on this one, but I learned a LOT and realized I have a knack for designing some and managing the trades. Working on getting my GC license now.
2018 - bought a house with my partner but we're actually at a loss of $180 for the house. It's a gorgeous house, but it was more emotional-driven and I got distracted from my usual path
We went back to my first house but after a year and looking at my numbers, it actually is better for us to rent and get much more space and amenities so found a SFH to rent 10 minutes outside the city.
Since you're just starting out, I would do owner-occupied mortgage since you can move in to a house with 0 - 5 % downpayment at the most. Only buy something you can afford on your own however, then rent out the spare bedrooms (if you wouldn't mind living with roommates). Do that for a year, then you can rinse and repeat. The banks would calculate 75% of the rental income when calculating your DTI when you're trying to buy a new house.
Important things: have savings set aside for repairs/maintenance(I allocate 10% of the rentals for this), and money set aside if your vacancy lasted longer than a month. Thorough screening of potential tenants/roommates, and not being afraid of tackling house repairs. Youtube, reddit and diyforums has been a godsend.
If you're trying to do strictly rental, you'll usually need 20-25% as a downpayment. Like folks here also say, attend local meet-ups, and network network. Steer clear of those seminars though where you pay to learn the tricks, etc. This website is plenty of help I feel.
I'm currently 35 (will be 36 in September) and I have six total units (three duplexes).
How I got started was that I purchased a condo in an "A" class area of Minneapolis to test the waters. The condo was really cheap in comparison to the median purchase price in the Boston area. I came to the table with the down payment from savings. After this property, I refinanced out my primary residence and took out a HELOC and went on a buying spree (using the proceeds mostly from the cash out refi to purchase the first two duplexes), buying the six units within 18 months (February 2017 was the first duplex purchase and my last purchase was June of 2018). I stopped buying recently due to three factors. First factor is that I had a really big ticket item come up out of the blue and wanted to pump the brakes after that happened (had to get creative to absorb the cost). The second item is that prices in the Twin Cities have been on a steady climb. There are a lot of younger buyers in the Twin Cities that are scooping up small multis to house hack (driving up pricing). Last and not least, the break has allowed me to stabilize the properties, understand pricing/the numbers and can be sharper on any future investments.
@Cameron Lee Brown I have family in Elizabethton, TN. I’m from Nashville originally. Good luck!
@J. Mitchell Bernier I just recently purchased my first duplex this year and trying to navigate the financing of my next deal. We're you able to finance those first three properties on your own, or we're you able find private funding? I see you're a lender, so I may be answering my own question. Any help is appreciated.
@Kristopher Allen thank you for the information. I’m not sure my wife would be agreeable to moving every year with two small children, but I love the strategy. Currently we are on a debt payoff journey which we started last March. So far we have paid off 100k in debt with the end date next year sometime (mostly student loans). What’s hard is that the only loans we have left are low interest and I could save 4700 a month towards a down payment right now. However I’m trying not to FOMO in while keeping a level head and learning as much as I can in the mean time.
Originally posted by @Ryan Hazelwood :
@Ujwal Velagapudi Do you use a property manager?
I did for about half of them, but the other half I managed myself. I had the operations pretty streamlined to the point where my self-managed units were just a few hours a month of work at most, especially since I had long term tenants with little turnover.
I’m 38 years of age, I have one rental & working on finding my second. I got my start by buying my first home 3 years ago renovating it and then rented it out. I also am learning everything I can about real estate and investing.
I wish you the best of luck and many beneficial hours of reading 😊
@Leatha L. Luttrell thank you! I may have to go that route since we don’t own a home. My rent is really cheap (1250 per month) and our landlord is a friend who has never raised the rent in the 4 years we’ve lived here.
I'm 46 I own one Rental SFH (my original owner occupied home ) I'm in what will soon be my 2nd rental and looking for my third home .
@James Cook do you have a wife and kids? If so, how long did you live in each and how did your family do with the transitions?
@Ryan Hazelwood I am about to turn 40 and own 6 single family rentals in Australia and a 3-plex in NOLA. I started about 5 years. Started by pulling money from my business to fund 20% down payments and bank financed the rest.
30, bought my first last year from a turnkey provider, wont do that again. Have one short term rental and closing on a second in September when it is finished being built. Currently rehabbing a brrrr as well. Will continue to buy STR and use cash to brrrr in my backyard. Goal is to have 20 properties by the end of 2021.
Thanks for posting!!
29. I have 17 rental units and two commercials spaces
37 w/ 1 rental but house-hacked my first house and made $110,000 profit.
58 years old. 8 SFH
Bought first one 2005
paid cash For all . Great income .
Wish I had the courage ( and the
money ) to start earlier .
I’m 36 and own 7 rentals (although I am a 50% partner in one of them; the other 6 I own personally). They’re all lower end condos, but the lowest end condos on Maui still aren’t exactly war zone. I rent most of them through section 8, and look for people in the shelter that need a chance, but pass the application with flying colors.
Closed on my first rental less than 3 years ago. Never would’ve imagined that I’d scale this fast (not to mention, have the opportunity to partner with Brandon Turner!!! Still can’t believe that one!) Now have about 17 deals done between flips, wholesales and rentals. The. Has flow on my 7 rentals is probably enough to pay the bills (40-50kish), but major surprises, vacancies, rents dropping, and other issues could put me in a very bad position so I continue my full time job, probably until we have six figures of cash flow. The really fun news is that this year I made more flipping in the first 3 months than I make in a full years income!!
Get started!! If I can do it anyone can!
@William Durel that’s amazing. Did you find a fixer upper to do that?
@Greg Gaudet thanks you for the inspiration! My aunt and uncle own a house on Maui. I can’t imagine what a “low income” property would even be worth considering theirs was like a couple million or more. How does section 8 housing work and is it worth it?
@Ryan Hazelwood it was nice in ready but dated. Needed newer windows, some updating to a couple rooms. I watched the markets for about 12 months and bought as the interest rates bottomed out. So we purchased when rates hit 4%.
@Marci Stein it seems like patience is key, but not too much patience. Haha
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