Rental #16 under contract!

Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes

My rental property goal was 16 properties. And now I'm under contract on rental #16!

It's a 3 bedroom, 1 bath property with a 2.5 car garage and partially fenced in yard located just 7 houses down from a rental I already own, so I know the neighborhood.

Purchase price = $27,900

Will rent for $850-875 per month.

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Joel OwensBusiness Member

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Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes

10y

Vincent most investors I know do not hold for 15 to 30 years on a single property. You calculate an opportune time to sell for your alternative investment property. You then sell the property with a 1031 before the large capex hits into a newer property unless you hold for redevelopment.

One negative is not much depreciation with these cheaper houses. Another is type of tenant is more time intensive to manage.

I think it is great what Dawn is accomplishing.

The largest wealth gains I see by investors are not cash flow related but buying at the right time in the cycle and then doing a 1031 into another area or asset class that hasn't peaked yet.

By constantly taking advantage of market conditions you have larger equity gains. So for instance if a property had 200 month cash flow after expenses for 2,400 a year and another property had 1,200 a year based on cash flow the 2,400 would look more appealing.

Fast forward 5 years and the higher cash flow property hasn't appreciated much but the one with less cash flow has risen quite substantially. So when the equity gain is factored in the less cash flow outperformed the higher cash flow property for overall returns.

This is not always the case but typically lower end areas are all cash flow, middle areas a mix of cash flow and good equity growth, and higher end areas little cash flow and the most equity growth.

What investors want and desire depends on the investor. Those making 50k a year at the job wanting to replace that income with cash flow so they can move to real estate full time will be focused on higher cash flow even if more time intensive.

Those making 500k a year tend to have a different investing philosophy. It's more about quality of the area and property with the least mount of headache, good equity growth upside, and cash flow is much farther down the list.

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Lauren Heart
Investor · Northern California · Member since 2015 · 126 posts · 40 votes
10y
Congratulations Dawn! Way to go! Is this also in Milwaukee? You seem to have that market cornered! Are you also going to PM this one too?
All the best,
Lauren
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Dawn AnastasiPro Member
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Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
10y
Originally posted by @Lauren Heart:

Congratulations Dawn! Way to go! Is this also in Milwaukee? You seem to have that market cornered! Are you also going to PM this one too?
All the best,
Lauren
Yes, I buy everything I own in Milwaukee, and manage my own rentals.
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Brie SchmidtBusiness Member
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Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
10y
Congratulation Dawn! That is fantastic!
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Christopher Lombardi
Developer · Point Pleasant Beach, NJ · Member since 2015 · 303 posts · 216 votes
10y
Congrats Dawn! Something tells me you aren't going to stop there.
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Matt Morgan
Residential Agent And Investor · Scottsdale, AZ · Member since 2013 · 212 posts · 83 votes
10y
Sounds like your deals just continue to get better. Congrats!
0 Reply
Simon Shih
Investor · Houston, TX · Member since 2012 · 354 posts · 186 votes
10y
AWESOME @Dawn Anastasi, Congrats!
0 Reply
John Harman
Investor · Central, PA · Member since 2016 · 2 posts · 0 votes
10y
Awesome.... Dont stop now, you're just getting started!!!!! Congrats!
0 Reply
Peter Kush
Buffalo Grove, IL · Member since 2015 · 31 posts · 1 vote
10y
Congrats! How's the total looking for you, my guess you're netting a healthy $250-300 per residence every month? Seems like your properties exceed the 2% rule!
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Andy Monaghan
Investor · Denver, CO · Member since 2015 · 17 posts · 4 votes
10y
Congrats Dawn - that is very inspiring! I want to get to a similar number by the end of 2016. Thanks for sharing.
1 Reply
Denita Ozenne
RN · Houston, TX · Member since 2015 · 69 posts · 29 votes
10y
Congrats Dawn, that's awesome. I feel like I know you because I constantly read your post and replies lol. This is amazing
1 Reply
Brandyn Dietman
Milwaukee, WI · Member since 2015 · 72 posts · 16 votes
10y
Congratulations!
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Adam Kozuch
Investor · Milwaukee, WI · Member since 2015 · 74 posts · 13 votes
10y
Congrats @Dawn Anastasi, maybe now you'll leave some for the rest of us!
0 Reply
Wilson Churchill
Madison Heights, MI · Member since 2014 · 471 posts · 132 votes
10y
Any more pics? It looks nicer than the homes I pick up for around 20k.
@Dawn Anastasi
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George P.
Property Manager · Livonia, MI · Member since 2011 · 4k+ posts · 1k+ votes
10y
yay! what do u do differently now compared to last year?
0 Reply
Linval T.
Investor · Bay Shore, NY · Member since 2014 · 1k+ posts · 688 votes
10y
@Dawn Anastasi - Congrats on attaining your goal and realizing your freedom number!
It's a good story to tell and the price is wonderful too.
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Tristan Cortez
Rental Property Investor · San Antonio, TX · Member since 2015 · 272 posts · 50 votes
10y
Congrats @Dawn Anastasi!
As a newbee this is a very inspirational post. I can't wait for my first rental!
Thanks for sharing and keep up the good work!
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Jason DePardo
Franklin, MA · Member since 2016 · 2 posts · 1 vote
10y
Congrats! How long have you been investing?
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Dawn AnastasiPro Member
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Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
10y
Originally posted by @George P.:

yay! what do u do differently now compared to last year?
I really haven't done anything differently other than it's harder to find good deals like this. I'm open to buying in cash which allows me to buy foreclosures and city owned properties.
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Andy WebbPro Member
Rental Property Investor · Carrollton, TX · Member since 2013 · 750 posts · 538 votes
10y
@Dawn Anastasi - Congrats!
Why 16?
Andy
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Steven Gesis
Investor · Miami, FL · Member since 2015 · 1k+ posts · 390 votes
10y
Congratulations Dawn! Great achievement, sound like you are building some authority and wealth in investing. Hope you continue your investing and transcend into the next level swiftly.
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Rumen Mladenov
Investor · Newark, DE · Member since 2014 · 245 posts · 198 votes
10y
Congratulations @Dawn Anastasi! And yes, why 16? I set my goal at 10, and once I reached it I set my next one at 20 - how did you arrive at 16?
0 Reply
Gwen Evans
Real Estate Agent · Milwaukee, WI · Member since 2014 · 5 posts · 3 votes
10y
Congrats!!!
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Bob Torres
Wholesaler · Youngstown, OH · Member since 2016 · 12 posts · 5 votes
10y
Congratulations dawn on your great accomplishment im sure u put a lot of hard work into plan I look forward to following your footsteps to 25 rentals in the next 5 years im currently at 3 owned free and clear
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Rich N.Pro Member
Investor · Haverhill, MA · Member since 2015 · 761 posts · 328 votes
10y
@Dawn Anastasi
Congratulations! You are among friends, what is a zero between us....go for 160 !
You definitely have the process down.
I wish Massachusetts property were priced like that with the same kind of rental dollars.
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Account Closed
Real Estate Broker · marietta, OH · Member since 2015 · 57 posts · 22 votes
10y
Congrats, looks like a great rental for the amount! I like to keep under 40k when I buy. Such great ROI!
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