One Year Later - 10 units and full time investor

One Year Later - 10 units and full time investor

Jacksonville, FL · Member since 2016 · 76 posts · 130 votes

It was about this time last year that I discovered Bigger Pockets and found what I was looking for - a way to escape the boring, restrictive 9-5 life while doing something enjoyable and generating wealth. I caught the real estate investing bug and started listening to podcasts and reading articles for hours a day.

I kept hearing experienced investors say to jump in, so I did just that a few months later. By August, I had closed on a quad and was officially a real estate investor. Around that time, I partnered with a friend who was also interested in REI. By my 24th birthday at the beginning of this year, we collectively owned 10 units / 4 properties. We've done a house hack condo, a BRRRR triplex, and duplex and quad rentals.

This has given me the freedom to go into real estate investing full time while my business partner is sticking it out at his job to help us qualify for mortgages. This month, we've put a live-in flip and a BRRRR quad under contract, and we have another duplex in verbal negotiations that looks very promising.

It's easy to get frustrated when progress seems slow, but rewarding when I can look back at my first year in real estate and see we made it to double digit doors while earning enough to go into real estate investing full time. I can't thank BP enough for the advice and wealth of information. We are currently looking for connections in Jacksonville, FL, Greenville, SC, and southern Delaware to grow our business if anyone is interested. Thanks BP!

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Jerry W.Pro Member
Moderator
Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
9y

Congratulations @Ethan Lee.  You have done very well.  I have been investing part time for almost 20 years and have not been able to leave the day job yet.

@Sam T., welcome to BP. BRRR is a buy, rehab, rent, refinance, repeat. it allows you to keep pulling money out to do rehabs over again. House hack means to live in a property while you rehab it. Often it is your primary residence to take advantage of the no capital gains from the sale of your primary residence for 2 of the last 5 years, but not always. you might start reading up in the education section above, it is loaded with tons of great information. Good luck.

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  • Rental Property Investor · New York, NY · Member since 2013 · 136 posts · 101 votes
    9y

    @David Zheng Is that 9k net or total rents/month from 10 units? 

  • Investor · Saint Louis, MO · Member since 2016 · 970 posts · 1k+ votes
    9y

    @Ahmad H. Net from 10 units

  • Real Estate Investor · Spring Valley, CA · Member since 2016 · 288 posts · 98 votes
    9y

    inspiring. thank you

  • Parlin, NJ · Member since 2015 · 24 posts · 10 votes
    9y

    Ethan, I'm 23 in your 23 year old shoes, just starting out as well absorbing as much as I can from podcasts, books, forums, etc. Really excited hearing success stories especially from someone who just decided to jump in, love it, congratulations and I hope you achieve your goals.

  • Rental Property Investor · New York, NY · Member since 2013 · 136 posts · 101 votes
    9y

    @David Zheng $900/door net is very high. Do you own them all outright? What's your cap rate? 

    I am averaging $200/door with mortgages. My net would likely double if I paid them off but nowhere close to $900/door.

    Are you doing short-term rentals? In other words, what's your secret to get those crazy numbers!

  • Investor · Arlington, TX · Member since 2015 · 201 posts · 61 votes
    9y

    How inspirational! That's awesome! @Ethan Lee How inspirational! I'm going to follow your lead.

  • Kalyanii K.Pro Member
    OR · Member since 2016 · 55 posts · 42 votes
    9y

    That's great Ethan!!!  Happy for you!  So great to hear how people are reaching their goals, very inspiring!!

  • Snellville, GA · Member since 2014 · 110 posts · 30 votes
    9y

     that is so cool! so all your properties are in LA? It says ur in FL though or do you mostly do Out of state investing? If so what type of areas and value do you look for and how do you pick the deals with the differences in each area?

  • Palpark, NJ · Member since 2016 · 69 posts · 11 votes
    9y

    Great job so far @Ethan Lee. 

    How is your partnership structured? You mentioned that the cashflow is roughly $2,000. How is it split between you and your partner? 

    Should've read the thread first. So it sounds like a 50/50 partnership. Thats great you who is highly motivated as you are. Keep trucking!

  • Brooklyn, NY · Member since 2017 · 13 posts · 1 vote
    9y

    Conrats happy to hear it is working for you, best of luck on your future investments keep us posted.

  • Sam AlbertPro Member
    Realtor · Providence, RI · Member since 2016 · 98 posts · 66 votes
    9y
    Congrats!!
  • Rental Property Investor · New York, NY · Member since 2013 · 136 posts · 101 votes
    9y

    @Ethan Lee I always say frugality + savvy investments = highway to early retirement. Saving 50% of your gross income is very impressive. Great work! Keep it up! Looking forward to more of your success :)

  • Investor · Albany, NY · Member since 2017 · 58 posts · 22 votes
    9y
    Congrats Ethan Lee from a fellow millennial! Lol I am thinking of parenting with a friend. Did you guys set up a legal entity (LLC?) and acquire loans under the legal entity?
  • Union City, CA · Member since 2017 · 1 post · 0 votes
    9y

    Congrats!

  • Investor · Katonah, NY · Member since 2017 · 2 posts · 2 votes
    9y

    Perhaps the reason why a realtor would steer you away from a multi to a SFR is because the realtor has none to sell you, and doesn't understand them. And the one, two, three unit strategy is fine if that's your plan, but you need to CF positive asap to make it work and pay your bills. 5 to ten rent checks eked out of a multi is always better than depending on one from a SFR. Blessings and best of luck!

  • Investor / Operation Manager · Seattle, WA · Member since 2014 · 65 posts · 10 votes
    9y

    This is awesome! I've been slacking on my investing adventure, but have been working for a general contractor to get my skills up. Thanks for the motivation! 

  • Investor · Chattanooga, TN · Member since 2015 · 6 posts · 2 votes
    9y
    Originally posted by @LaMonica Evans:

    I do have a solid question for you. Im looking to purchase my first property. Ive been told time and time again from ppl on BP, articles and the like that house hacking a Duplex/Triplex/Quad is a good way to enter into investing. You can house hack and qualify for FHA.

    However, my dilemma is that my RE broker says he doesnt suggest a multi-family but A Sfr for a first investment, following up with Duplexes/Tris/Quads are hard to get rid of and many ppl get stuck or sell for a loss.


    My husband and I purchased a triplex this summer with an FHA loan and a low-ball offer. It was an estate trying to cash out the money and they were willing to let it go for what we felt was a good deal. We live in one of the units and our portion of the mortgage/insurance/property tax (after the rent from the other two units) is $200/mo. We doubled our living space (we rented an apartment for our first year of marriage) at a third of the cost. We acquired the tenants in both units and it has been a breeze, even though the acquired tenants are paying a little under market. Since they have each been there for several years, it makes sense to keep the tenants at the lower rate instead of trying to find new people and turn over the units.

    I'm really glad we decided to buy a multi-family place first. It felt like a no-brainer to us and we have no regrets. The key thing, I think, is to find a place you're planning on keeping indefinitely. Make sure the price is right and that the cashflows work, even if you're living in one of the units. For example, even though right now we have to pay $200/mo. toward the mortgage/insurance/taxes, it's a heck of a lot cheaper than if we were to pay $800/mo. to pay someone else's mortgage, and when we eventually move out and rent the third unit, we expect to clear at least $500/mo. in rents.

    Just my two cents. I hope it was at least a little helpful. :)

  • Real Estate Broker · MI · Member since 2014 · 594 posts · 183 votes
    9y
    Great success story! I personally had the pleasure of mentoring a 25 year old a few years back. He is now making a killing and operates his own real estate business with employees. I am not asking this question to offend you but did you have a mentor?
  • Investor · Chattanooga, TN · Member since 2016 · 146 posts · 108 votes
    9y

    Wow getting $400 per door cash flow (assuming 50/50 split with your business partner) is some great cash flow! You are so right that living frugally can do wonders for your investments. The less you can live on the sooner you can become financially independent and start doing RE full time. 
    Congrats on achieving it in such a short time.  I will be making the full time switch in July, it is exciting and yet nerve racking at the same time. How have you found that change to be? How does it compare to what you thought it would be like?

  • Investor · Latham, NY · Member since 2014 · 217 posts · 65 votes
    9y
    Congrats Ethan, Another great example to show people that it is absolutely possible.
  • Dana WhickerPro Member
    Investor · Fernandina Beach, FL · Member since 2014 · 557 posts · 374 votes
    9y

    Congrats Ethan!!

    I only wish I had started out gangbusters like you when I was your age.

  • Real Estate Broker · Charlotte, NC · Member since 2016 · 569 posts · 351 votes
    9y

    Congrats! Mr. Ethan, Great thing happened to you.. More blessings to come.

  • Real Estate Agent · Valrico, FL · Member since 2017 · 1 post · 0 votes
    9y

    Great work, Ethan!  This gives me a lot of hope.  I have one single-family rental but I'm always thinking about how I can expand my portfolio.  :)  Multi-family seems a great way to go!

  • Investor · King of Prussia, PA · Member since 2014 · 1k+ posts · 339 votes
    9y

    @Ethan Lee congrats & well done! More success and please share your future acquisitions. 

  • Jacksonville, FL · Member since 2016 · 76 posts · 130 votes
    9y

    @Eric Armstrong thanks for the suggestion! I'll check it out

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