Beat my 10 Year goal in 1.5!!! :D

Beat my 10 Year goal in 1.5!!! :D

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

So Dec. 2015 I started my real estate adventure. I'm a huge numbers guy so I love my spreadsheets and planning my financial future. Thus based on a 20% down per property mindset, I tried to gauge what I could realistically achieve with a 60k salary. If I lived like a boring robot living on rice and beans, I would be able to buy ONE property a year and reach a 10 property goal by the time I was 35, which I thought would be my freedom number.

Well on May 4th, 2017 I officially closed on my 10th property and more than doubled my fulltime monthly income through just rentals!! Yes I am still at my W2 job and I plan on staying here for a while because I like having multiple streams of income. Plus as my goals get hit, I aim for higher and higher dreams which my job will help me achieve.

 So here's the order of properties I've bought

1. Condo 2. Condo 3. Condo 4. Condo 5. SFH 6. SFH 7. SFH 8. Triplex 9. 4-Plex 10. Duplex

Many ask how I was able to buy that many properties as a noob middle class salaried investor in his first couple years of doing all of this.Well I've probably used every strategy in BP. BRRRR, Cashout refinances, Family/Friends/Investors, Business Loans, HML, etc. etc.

I encourage everyone to seek their own answers and research themselves rather than asking me to hold their hand on each of my deals and try to replicate. I haven't done anything too much more different than thousands of other people have done on here. Really, you just have to learn how to work 12-14 hour days for a months and be OPEN to being said no to and be OPEN to learning.

and no I had no mentors or personal gurus to help. All I had was good old google, youtube, and most importantly. Bigger Pockets  :)

So where am I headed now? If I've learned anything, its that the sky is the limit. Don't compromise and don't sell yourself short, because you CAN do anything as long as you work hard/smart enough. In saying that, I want to hit a passive income of at least $1million/year. Lofty? hell yes, but why not? As my dad has always said to me, aim for the highest achievable goal. Even if you don't get there you will get where you deserve to be and you'll know you tried your hardest.




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Investor · Fort Pierce, FL · Member since 2016 · 47 posts · 16 votes
9y

Time to get @David Zheng on the podcast.

Congrats!

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  • Bolton, Greater Manchester · Member since 2016 · 5 posts · 1 vote
    9y
    Congrats David.You are quite an inspiration.keep aiming for the stars and stay focused
  • Bolton, Greater Manchester · Member since 2016 · 5 posts · 1 vote
    9y
    Congrats David.keep aiming for the stars and stay focused
  • Ian WalshBusiness Member
    Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    9y

    Really nice work in beating your 10 year goal and setting goals in the first place.  Good stuff.

  • Investor · Miami, FL · Member since 2016 · 5 posts · 3 votes
    9y
    Fantastic motivation David! Keep sharing with the community
  • Shiloh LundahlPro Member
    Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
    9y

    @David Zheng Congratulations!  I read through the posts and I don't recall if and how you got loans on all of the properties. Could you share some details on that or just repost it if you already answered the question.

  • Douglasville, GA · Member since 2015 · 29 posts · 11 votes
    9y
    That's awesome, David Zheng ! Very inspirational to someone like me, who is just now starting out. I currently have a salary similar to what you did when you first started out. What were some actionable steps that you took to reduce expenses, and save money, during that period of starting out? Thanks! -Jacob
  • Investor · Winter Springs, FL · Member since 2010 · 165 posts · 68 votes
    9y

    Congrats on your accomplishment @David Zheng!!! 

    Do you run your own properties or have a property manager? Still working full time?

  • Real Estate Consultant · Cleveland, OH · Member since 2016 · 511 posts · 345 votes
    9y

    Congrats @David Zheng. Do you self manage? What tools do you use to manage rental payments, screening, etc?

  • Investor · Saint Paul, MN · Member since 2017 · 55 posts · 21 votes
    9y
    David Zheng congrats! I'm have just recently started off on a similar path. I am 24 and recently purchased my first property. My goal is to have 10 properties by the time I reach 30! Do you manage your own units or do you have a rental company take care of your properties? And did you house hack one of your condos in order to get started?
  • Investor · Saint Louis, MO · Member since 2016 · 970 posts · 1k+ votes
    9y

    @Lee Cruz yes 9/10 of the deals were from the MLS. The last one came from an investor I met along the way. So hopefully this will also inspire some people who think good deals don't happen on the public market.


    @John T. Easiest way to say it is on a NOI/bedroom basis and I try to buy properties where its 50k/bedroom on a condo and 40k/bedroom on a house. I like to see about $200/bed for condos or $400/bed on houses. So lets say for a 2bed1bath condo that I buy for 100k. I wants to see about $400 of cashflow per unit.


    @Kevin Manz LOL ;)

    @Carlos Alger Honestly I was a huge loser in before 23 years old. I never went to one concert or show before then. I started working when I was 16 and saved every penny. I also had an investment based internship every year in college and socked away that too. My parents saved a college fund for me but I got a full ride so I put that in a mutual fund as well. I did have a sizeable savings but it definitely wasn't handed to me. Even then, it was only good enough to buy the condos. The rest I had to create In other places


    @Coco W. Once I hit some solid reserves, I want to go for a 12+ unit building next, then vacation rentals (/personal getaways lol)  and one day I really want to own a nice hotel with casino, bar, nightclub, the whole shebang hah

  • Beloit, WI · Member since 2016 · 100 posts · 40 votes
    9y

    Congratulations David! You're very inspiring; thanks for sharing your story.

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

    @Shiloh Lundahl HML, Portfolio, Business, Conventional. A little bit of everything


    @Jacob Sanders I literally saved every penny I made since I was 16 years old. I did a lot of free events to have fun. Never went to my first concert until I was 23. I bought a condo instead of renting right out of college. 90% of my stuff I buy from Craigslist or ebay. not even kidding. TV, couches, tables, shoes, dressers, cooking utensils, etc.

    I also don't have a spouse of kids which is superrrr helpful. Besides saving you also have to focus on earning. On top of my fulltime, I own a nightlife biz where I rent out lighting and audio production equipment as well as produce clubbing events. I have a saltwater tank and I actually propagate the corals to make a profit. Turn your hobbies into money makers if you can.

    @Javier Marchena @Christopher Blanco @Adam Petterson

    I manage all my own properties and yes I will have a full time job along with some of my other businesses. Tools that I use...just good old Excel. As long as you stay organized, that's all you need. I record literally everything: expenses, maintenance visits, supplies bought, rent roll, etc. Screening is basic like more landlords. 

     

  • Investor · WI OH · Member since 2015 · 113 posts · 36 votes
    9y
  • Real Estate Consultant · Cleveland, OH · Member since 2016 · 511 posts · 345 votes
    9y

    Its very important to have the support of your spouse, and having kids is not always bad. I have an 18 year old that already invested in a deal and is earning passive income as a lender. All of our kids do things for the properties and marketing and get paid to do so, in addition its a tax deduction for me. However, without the support of my wife I wouldn't know where to begin. She is an amazing asset to my business and if she wasn't I wouldn't be doing this. 

  • Multifamily Syndicator · Austin, TX · Member since 2015 · 127 posts · 247 votes
    9y

    Congrats.  Thanks for sharing the inspiration!

  • Flipper/Rehabber · Patchogue, NY · Member since 2015 · 73 posts · 29 votes
    9y

    So amazing @David Zheng.  I hope you are super proud of yourself and that you are able to take some time out to really appreciate the savings, courage and hard work you already put in.  Very inspiring!

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

    @Christopher Blanco Don't get me wrong. I am absolutely not bashing on spouses or kids as I plan on having those one day. But I forsure wouldn't be able to move as fast or hard as I did with them.

  • Real Estate Consultant · Cleveland, OH · Member since 2016 · 511 posts · 345 votes
    9y

    @David Zheng No worries, I wasn't offended!  I was more responding to the comment below yours. I agree completely, though. I am just saying that if your spouse is supportive and involved you can avoid that slow down a lot. 

  • Realtor · McKinney, TX · Member since 2016 · 106 posts · 90 votes
    9y
    David Zheng Very cool to hear your path, I'm curious with your W2 job, do you self manage or have a property manager?
  • Small Business Owner · Fallston, MD · Member since 2014 · 145 posts · 20 votes
    9y

    thanks for your inspiration. I have yet to do my first deal but I'm determined to own my first rental before July 2017. 

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

    @Roland Brown


    Answered in this thread if you scroll up to my responses to people :)

  • St. Louis, MO · Member since 2017 · 16 posts · 6 votes
    9y

    @David Zheng Congrats on the great success! I have began the process of buying real estate in St. louis, MO as well. What areas of the city have you had success in?

  • Investor · WI OH · Member since 2015 · 113 posts · 36 votes
    9y
    Originally posted by @Christopher Blanco:

    @David Zheng No worries, I wasn't offended!  I was more responding to the comment below yours. I agree completely, though. I am just saying that if your spouse is supportive and involved you can avoid that slow down a lot. 

     I knew you were responding to me. Not going into detail but familial involvement and "support" is going to be different for everybody. 

    Where you have adult children assisting in your RE ventures, someone like say, myself, has younger children which consume more then they produce. The same can be said for my spouse who may demand more of our earnings to maintain an accustomed lifestyle.

    I make several times what David makes(W2) but with my expenses (family and location) I'm willing to bet he has more disposable $ and thus, more to invest.

    IF it were up to me (and my time machine worked) I would have brought the spousal unit on board years ago and likely postponed the kiddos.

  • Rental Property Investor · Saint Louis, MO · Member since 2016 · 162 posts · 53 votes
    9y

    Congrats!  Thank you for sharing! 

  • Olympia, WA · Member since 2016 · 45 posts · 8 votes
    9y

    That is great. Congratulations on setting your goals and achieving them way in advance. I think many people forget to set plans/goals and they just try to wing it.

    I would love to know your due process of goal setting and how that helped you reach you new level in life.

    Thanks for sharing! Keep pushing forward!

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