24 Year Old Making $16 an Hour, Closing on 4 Plex Friday!

24 Year Old Making $16 an Hour, Closing on 4 Plex Friday!

Grand Forks, ND · Member since 2017 · 21 posts · 59 votes

Hi BP,

Just wanted to start out on how thankful I am to this site and everyone on it. Last year at this time I would of never guessed that I would be a landlord right now. A little background how this is even possible form me, at this time last year I was working 30 hours a week making $12 an hour. I also had every side job i could possible find which made me close to $2000 a month. I was given a raise to $16 and 40 hours a week at my job and a month ago was raised to $18. I have been living a low key life, all of my friends call me cheap, but its me saving money for things like this.

Around 3 months ago I found bigger pockets, I have listened to around half the podcast and all of the buy and hold investor podcast. This is mostly at the Job where ive gotten raises :). The biggest thing is beleiving that you can do it. Everyone that I tell that I am buying a 4-plex dosent believe me or asks how much money my family is giving me. The answer to that is 0. Ive been fortunate to have had my dad pay for the first two years of school, I worked while in school and was able to pay the last two years with no loans, just grants I received from the government and academics.

So a little on my deal, I have been working with a realtor and looked through apartments from 4-plexes to 18 unit buildings. I have seen everyone on the market and walked through the good and ugly. Made three offers on different four plexes but was to low for owners to sell. One of the greatest things I learned from the podcasts is when you meet someone instead of saying hows it going and good, tell them what you want or doing. I think the entire town I live in knew I wanted to buy a four-plex. Finally that paid off, when a seller came straight to me and wanted to sell. He was a motivated seller that needed money for medical bills for his wife. I walked through with him asked him the price he wanted. His price was higher than all the other building for good reason this is by far the best kept up and nicest one Ive seen, also with the highest rents by $500.

I brought him in and made a low offer with all closing cost paid or up to 3% saving my money down and to my surprise he didnt blink and said yes. This made me nervous that I offered to high, but was confident at the same time. When I got the appraisal back It was confirmed, all of the comps he used Ive walked in. He praised the condition of mine and really had nothing bad to say. He appraised it over $10,000 high which I am ecstatic about. 

The loan I got with this property is a Freddie Annie first time home buyers conventional loan with 5% down and 3.875% fixed interest 30 year fixed. Was looking at FHA but I have high enough credit to use this one, and very happy I did so. Everything is set to close on Friday after a few hurdles slowed me down due to this being my first deal.

After using all of the cash flow calculators and other tools I  will be cash flow positive on three of the units. I will still be paying rent and finding someone to live with me as well, because Im trying to get to deal #2 in less than 6 months.

Wish me luck and thank you again! 

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Findlay, OH · Member since 2017 · 8 posts · 4 votes
9y

This is awesome Cole, really inspirational post. I am new to BP, literally signed up today! I am 22 and have a similar ambition, it is cool to see that someone else around my age is having the kind of success that I am looking for. Really good information and I am happy you are off to a great start. Good luck on your next deal!

Tyler

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  • Findlay, OH · Member since 2017 · 8 posts · 4 votes
    9y

    This is awesome Cole, really inspirational post. I am new to BP, literally signed up today! I am 22 and have a similar ambition, it is cool to see that someone else around my age is having the kind of success that I am looking for. Really good information and I am happy you are off to a great start. Good luck on your next deal!

    Tyler

  • NYC, NY · Member since 2016 · 617 posts · 456 votes
    9y

    Great story.  Best of luck and continued success on your journey.  

  • Investor · Austin, TX · Member since 2014 · 102 posts · 41 votes
    9y

    Congratulations on the 4 plex! It really builds on it self if you keep the same mindset. Good luck searching for deal #2

  • Rental Property Investor · Hamilton, OH · Member since 2016 · 59 posts · 30 votes
    9y

    Congrats on living below your means in order to take action! I wish you continued success!

  • Rental Property Investor · Youngstown, OH · Member since 2016 · 58 posts · 45 votes
    9y
    Congrats! It's great to hear such an awesome success story from someone similar in age. I'm in the same boat as you, 23 and working for similar pay while attending school, and I'm hoping to do exactly the same thing with a three or fourplex in the near future once I have enough saved up. Keep it up, can't wait to see what you accomplish next! :)
  • Grand Forks, ND · Member since 2017 · 21 posts · 59 votes
    9y

    @Alexa K. Thanks for response! If you do find yourself purchasing a 4-plex let me know if you have any questions. I've learned alot through BP, but like everyone says you learn so much more by doing it. Feel free to message me anytime in the future.

  • Rental Property Investor · Youngstown, OH · Member since 2016 · 58 posts · 45 votes
    9y

    Thanks, Cole. I will definitely keep you in mind. 

  • Steph C.Pro Member
    Real Estate Investor · Bristol County, MA · Member since 2010 · 153 posts · 37 votes
    9y

    Congrats, @Cole Johnson!  Your friends may call you "cheap." However, it sounds like you're doing everything right. You're moving toward achieving your goals and working hard to get there.  Your tenacity should be admired.

    Wishing you continued success!

  • Investor · Phoenix, AZ · Member since 2014 · 230 posts · 122 votes
    9y

    Good for you!

  • Hard Money Lender · West Jordan, UT · Member since 2015 · 105 posts · 75 votes
    9y

    @Cole Johnson - what a fantastic start  for you! Your work ethic and personal responsibility make real estate a great business for you to pursue. 

  • Grand Forks, ND · Member since 2017 · 21 posts · 59 votes
    9y

    @Steph C. Thanks Steph im sure they will see my "cheapness" when Im the one collecting the rent checks fromm them!

  • Waterford, MI · Member since 2017 · 1 post · 2 votes
    9y
    Awesome stuff, glad to hear you pulled the trigger after saving and ignoring your friends pessimism! They'll wish they did the same come down the road. I'm 21, myself, saving up like you, with one more year left of school. I look to be making my first purchase within the next two years so thanks for sharing your story and good luck with your next deal!
  • El Cerrito, CA · Member since 2015 · 257 posts · 129 votes
    9y

    Hey @Cole Johnson this is great. Do you have any numbers you can share with us? I'd love to see how it is broken down to help with my analyzing. How long did it take you to save up the down?

  • Investor · MD · Member since 2017 · 15 posts · 4 votes
    9y

    Congrats @Cole Johnson on your first!!! Sounds like this definitely will not be your last.

  • Grand Forks, ND · Member since 2017 · 21 posts · 59 votes
    9y

    @Doug Woodville Sure I can give you some numbers

    Purchase Price 243,000

    Seller Concessions 3% up to $7290 I might have to cover a minimal amount of closing costs

    Appraised for 254,000

    Down Payment 5% 12,100

    Interest is 3.875% on a 30 year fixed

    Rent average is 725 per unit totaling 3000 if full and about 100 in laundry a month

    P&I,Insurance,Taxes close to 1550 a month

    I pay water and garbage water was 1500 last year

    Defiantly not a home run but very happy with what I got in my area. 1% rule is tough here

  • El Cerrito, CA · Member since 2015 · 257 posts · 129 votes
    9y

    Thank you for that. Looks good to me!

  • Fort Lauderdale, FL · Member since 2013 · 7 posts · 0 votes
    9y

    Well on your way to early retirement there Sir ... This is exactly what I plan on doing and its great to see the younger generation making moves like this. Soon you will be able to start dabbling in some stocks (options) and REITS  and really start building and expanding your wealth. 

  • Rancho Cucamonga, CA · Member since 2016 · 1 post · 0 votes
    9y

    Awesome deal man, I am also a young investor looking to close on his first deal.  Thanks for sharing your story, it continues to motivate me!

  • Flipper/Rehabber · Berkeley Springs, WV · Member since 2017 · 164 posts · 103 votes
    9y

    Congrats Cole! Now to the BRRRR method! Keep building.

  • Lender · Nashville, TN · Member since 2017 · 205 posts · 107 votes
    9y

    Congrats @Cole Johnson this is very inspirational! So awesome to see a fellow young guy overcome similar obstacles as mine and still make it happen.  The strategy that is mentioned in the podcasts that you used about telling everyone you meet what you are looking for can be such a powerful tool. I am currently searching for my first small multi family deal so stories like these really give me hope. 

    Best of luck with all your future endeavors! 

  • Boston, MA · Member since 2017 · 40 posts · 12 votes
    9y

    Hey Cole Congratulations man! Keep it up! Look forward to hearing of more success!!!

  • Rochester, NY · Member since 2017 · 24 posts · 8 votes
    9y

    @Cole Johnson Congratulations to you!!!!!!!! I'm in the same boat right now, saving & looking for a rental property in my area. Your story is really inspirational and keeps me positive & motivated for my 1st deal. Gonna start out with house hacking and plan to add more rentals & do some flips along the way. More power to you tho Cole, keep up the good work!!

  • Richmond, VA · Member since 2017 · 24 posts · 8 votes
    9y
    Is this loan based on you occupying one of the units for that low down payment and interest rate?
  • Ana GarridoPro Member
    Central Florida · Member since 2016 · 40 posts · 19 votes
    9y
    Wao very inspirational! Congratulations !!!!!
  • Greensboro, NC · Member since 2015 · 129 posts · 30 votes
    9y
    Originally posted by @Cole Johnson:

    Hi BP,

    Just wanted to start out on how thankful I am to this site and everyone on it. Last year at this time I would of never guessed that I would be a landlord right now. A little background how this is even possible form me, at this time last year I was working 30 hours a week making $12 an hour. I also had every side job i could possible find which made me close to $2000 a month. I was given a raise to $16 and 40 hours a week at my job and a month ago was raised to $18. I have been living a low key life, all of my friends call me cheap, but its me saving money for things like this.

    Around 3 months ago I found bigger pockets, I have listened to around half the podcast and all of the buy and hold investor podcast. This is mostly at the Job where ive gotten raises :). The biggest thing is beleiving that you can do it. Everyone that I tell that I am buying a 4-plex dosent believe me or asks how much money my family is giving me. The answer to that is 0. Ive been fortunate to have had my dad pay for the first two years of school, I worked while in school and was able to pay the last two years with no loans, just grants I received from the government and academics.

    So a little on my deal, I have been working with a realtor and looked through apartments from 4-plexes to 18 unit buildings. I have seen everyone on the market and walked through the good and ugly. Made three offers on different four plexes but was to low for owners to sell. One of the greatest things I learned from the podcasts is when you meet someone instead of saying hows it going and good, tell them what you want or doing. I think the entire town I live in knew I wanted to buy a four-plex. Finally that paid off, when a seller came straight to me and wanted to sell. He was a motivated seller that needed money for medical bills for his wife. I walked through with him asked him the price he wanted. His price was higher than all the other building for good reason this is by far the best kept up and nicest one Ive seen, also with the highest rents by $500.

    I brought him in and made a low offer with all closing cost paid or up to 3% saving my money down and to my surprise he didnt blink and said yes. This made me nervous that I offered to high, but was confident at the same time. When I got the appraisal back It was confirmed, all of the comps he used Ive walked in. He praised the condition of mine and really had nothing bad to say. He appraised it over $10,000 high which I am ecstatic about. 

    The loan I got with this property is a Freddie Annie first time home buyers conventional loan with 5% down and 3.875% fixed interest 30 year fixed. Was looking at FHA but I have high enough credit to use this one, and very happy I did so. Everything is set to close on Friday after a few hurdles slowed me down due to this being my first deal.

    After using all of the cash flow calculators and other tools I  will be cash flow positive on three of the units. I will still be paying rent and finding someone to live with me as well, because Im trying to get to deal #2 in less than 6 months.

    Wish me luck and thank you again! 

    Congrats on your deal. I also have been spending plenty of time listening to the buy and hold podcasts. Great to here that telling everyone you come in contact with exactly what you were looking for has paid off.

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