Today - at age 24 - I "retired". Here's how I did it.

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Today - at age 24 - I "retired". Here's how I did it.

Filipe Pereira
Property Manager · Windsor Locks, CT · Member since 2016 · 1k+ posts · 1k+ votes

Hey all! Just sharing my story with the hope that it will light a fire under some of you, or keep the one you've already got burning hot. Here we go: 

It all started with a small loan of a million dollars from my dad....okay, okay only kidding!!

Last year I purchased a 4 plex with good amount of money down (20-25%) in East Hartford Connecticut. PP was 200K, and rents were at $3605 a month. I sat on the property for a few months, felt out the tenants and have since then asked a few tenants to leave, or increased their rent as a way to encourage them to find new housing. In the last 11 months or so, I have rehabbed two apartments (10-12K of material, labor done by yours truly) and am now sitting at gross rents just shy of $4,110. Recap - I got a 4 plex, put in 10-12K of rehab to get out an extra 6K per year. I like that ROI!


Most recently I purchased a SFR in Windsor Locks, CT. I'll admit, I'm a huge car buff, and I wanted the place for the generously sized 4 car garage....well, once we got to the inspection period, I didn't think the numbers would work, so I started to back out. The listing agent made magic happen though, and got the sellers to drop the price 60K! I figured that the house needed 30-40K worth of work. This property quickly became a home run deal.

Even though I'm a car guy and wanted that garage badly, I knew I had to mortgage the rest of the house with it...but, what 24 year old in their right mind needs a 4 bedroom house for himself? So guess who got himself a couple of house mates?? This guy! The mortgage and then some is covered, and now I am sitting on two properties, both with what I would consider good equity. One I will likely never sell, the other is more of a live-in-for-free-while-making-a-profit-flip. 

At this point, the money I make as a landlord is getting dangerously close to the money I was taking home from my W2 job as an entry level architect in training in downtown Hartford. I've decided to put that career on hold to develop a property management company here in north central CT. There is no way I could "retire" and sit on my butt for the next 60 years! Plus, I want to buy more cash producing assets, and be my own boss....that takes money! ;)

Here's to financial freedom, my friends!! 

Filipe

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Audrey Ezeh
Real Estate Investor · Las Cruces, NM · Member since 2016 · 186 posts · 173 votes
9y


Origi?nally posted by @Filipe Pereira:

Hey all! Just sharing my story with the hope that it will light a fire under some of you, or keep the one you've already got burning hot. Here we go: 

It all started with a small loan of a million dollars from my dad....okay, okay only kidding!!

Last year I purchased a 4 plex with good amount of money down (20-25%) in East Hartford Connecticut. PP was 200K, and rents were at $3605 a month. I sat on the property for a few months, felt out the tenants and have since then asked a few tenants to leave, or increased their rent as a way to encourage them to find new housing. In the last 11 months or so, I have rehabbed two apartments (10-12K of material, labor done by yours truly) and am now sitting at gross rents just shy of $4,110. Recap - I got a 4 plex, put in 10-12K of rehab to get out an extra 6K per year. I like that ROI!


Most recently I purchased a SFR in Windsor Locks, CT. I'll admit, I'm a huge car buff, and I wanted the place for the generously sized 4 car garage....well, once we got to the inspection period, I didn't think the numbers would work, so I started to back out. The listing agent made magic happen though, and got the sellers to drop the price 60K! I figured that the house needed 30-40K worth of work. This property quickly became a home run deal.

Even though I'm a car guy and wanted that garage badly, I knew I had to mortgage the rest of the house with it...but, what 24 year old in their right mind needs a 4 bedroom house for himself? So guess who got himself a couple of house mates?? This guy! The mortgage and then some is covered, and now I am sitting on two properties, both with what I would consider good equity. One I will likely never sell, the other is more of a live-in-for-free-while-making-a-profit-flip. 

At this point, the money I make as a landlord is getting dangerously close to the money I was taking home from my W2 job as an entry level architect in training in downtown Hartford. I've decided to put that career on hold to develop a property management company here in north central CT. There is no way I could "retire" and sit on my butt for the next 60 years! Plus, I want to buy more cash producing assets, and be my own boss....that takes money! ;)

Here's to financial freedom, my friends!! 

Filipe

 Congratulations on these deals! You are taking action and doing amazing and that's very inspiring. Keep in mind however that the sweet bank loans with low interest rates are much easier to come by when you have a W2 income and maybe you are not entirely dependent on the cash flow to live on. So maybe hang on to your job for a little while longer while you grow your portfolio or have a strong private lending network :)

Congrats again!!

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  • Tommy Lamar
    Contractor · Charleston, SC · Member since 2016 · 8 posts · 5 votes
    9y

    Filipe,

    Congratulations on your success, and congratulations on starting your owner property management business!!

    I recently started my own property management business here in Charleston, SC. It's great to see someone with a solid investment/architect/real estate background getting into the property management arena.  My opinion is that those of us that understand finances and real estate in general can help provide so much added benefit to our clients' investments. 

    Property management gets a bad rep and probably for good reason.  Knowing that people like us can enter the industry and provide exceptional service is what got me started in the first place.  I started my career as an accountant and financial planner before starting my own property management business. Working one on one with property management companies, as client's of the accounting firm, was when I first realized the need and opportunity for qualified property managers who not only understand management but finances as well. It seems as though there is a serious lack of knowledge in the industry. Someone like yourself will have great success, and property owners will appreciate the value you add to their investment.

    Connecting with realtors, wholesalers, flippers, contractors, tenants, etc. will all be exceptionally important in our journey to financial freedom! I truly believe that your property management business will be a major compliment to your overall real estate success. Feel free to reach out if you would like to bounce ideas off each other on how to continually improve our property management businesses!  

    Keep up the good work!

    Tommy

    3Reply
  • Parker Stiles
    Flipper/Rehabber · Acworth, GA · Member since 2014 · 246 posts · 92 votes
    9y
    Originally posted by @Jack B.:

    Filipe, can you share your total net income from rents vs. your living expenses? Have you had to cut back on things? 

    I will be FI as soon as I move back into one of my rentals, but I'm still grinding it out in corporate since I have a high paying job. That said, I own roughly 2.5 million in real estate and am 10 years older than you, so amazing that you did this at 24...

    I'm in Seattle and my cash flow is only 30K, but that's more than I need if I downsize and live a simple life. I make another 30K off principle pay down and 200K a year appreciation for now. But eyeballing moving to a cash flow market when I retire in a few years.

     2.5M in ownership and cash flow of $30K?? Your buying in the wrong state my friend! Think of all your missing out on! I have around $270K in ownership and my cash flow (60% of gross) in GA is $27,144/yr. If you want help buying in a better cashflow market, lmk. Don't get stuck only investing in your backyard..

    2Reply
  • Marilyn Moedinger
    Architect · Boston, MA · Member since 2015 · 1 post · 2 votes
    9y

    I'm perusing BiggerPockets this morning, like I usually do, and there's my former student @Filipe Pereira killin' it in real estate! Nice work, sir - can't really say I'm surprised! Keep it up - and don't forget the superpowers you bring to the table with your architecture education :)

    2Reply
  • Jessie Niu
    Columbus, OH · Member since 2015 · 210 posts · 80 votes
    9y

     2.5M in ownership and cash flow of $30K?? Your buying in the wrong state my friend! Think of all your missing out on! I have around $270K in ownership and my cash flow (60% of gross) in GA is $27,144/yr. If you want help buying in a better cashflow market, lmk. Don't get stuck only investing in your backyard..

    Agreed. I can achieve that too in Columbus OH market. 

    0Reply
  • Hector Rodriquez
    Altadena, CA · Member since 2017 · 17 posts · 6 votes
    9y
    Originally posted by @Filipe Pereira:
    Originally posted by @Joe Splitrock:

    Early retirement is just the point when your living expenses meet your net take home. His accomplishment is more a result of limiting expenses than it is gaining income. 

    Here is another way to look at it. A homeless person with no job has accomplished early retirement. They are often perfectly happy. Money doesn't buy happiness. It buys time and opportunities. 

    Before quitting your job, run the numbers on what you need for living expense. Track your ACTUAL living expenses for a few months. Calculate your ACTUAL take home AFTER expenses. Take home is not rent. You need to subtract utilities, vacancy, payment, taxes, repairs, CAPEX and management.

    Joe, like I previously mentioned, you really don't know much about my financial situation, or my financial past for that matter. 

    I started working and actively saving money at the age of 13. I manage my money like it's my business, because it is.  

    I started my own Roth IRA when I was in highschool. I've tracked my ACTUAL income / expenses for years. 

    I can tell you, down to the penny, where my money has gone in the three most important categories of money behaviors: Giving, Saving and Spending. 

    Even after I quit my W2 I am still able to live the lifestyle I want, and put money into my savings and retirement accounts, month after month. 

    ...I'm not your typical millennial. I grew up reading Clark Howard and Dave Ramsey books. I know a thing or two about how to manage money. I am not sure what else to tell you, and it seems like you are on a never ending merry go round of repeating the same thoughts - all of which I have previously addressed in this thread. 

     At this point, I'm not really interested in spending good time after bad, so while you can feel free to continue commenting I will simply skip over them. 

    Happy investing! 

    Filipe

    Haters are gonna hate ... But I commend you for daring to be different and have the courage and discipline to challenge the status quo. You obviously got sound advice growing up but more importantly applied what you learned to separate yourself from the crowd to get to where your at today. 

    Not many 24 year olds can say that ...  Congratulations  again   

    2Reply
  • Rob Milliken
    Wholesaler · Union, ME · Member since 2016 · 148 posts · 27 votes
    9y

    Congratulations!!! Keep up the good work!!!

    1Reply
  • Login George
    Belleville, NJ · Member since 2016 · 46 posts · 19 votes
    9y

    @Filipe Pereira Congrats man! As someone who met you "early on" in your path to investing, its been a pleasure watching you grow in many ways. I could sense your drive and your passion when I first met you. And no doubt, that drive and passion are carrying you forward strong and fast! Not only have we been friends during this process, but I am also a benefactor of your exceptional services and systems (aka., your client). Its been a pleasure and I look forward to seeing you grow more!

    1Reply
  • Angela Henderson
    Investor · Blackwood, NJ · Member since 2014 · 52 posts · 14 votes
    9y

    Congratulations! An awesome accomplishment at a young age! 

    1Reply
  • Angela Henderson
    Investor · Blackwood, NJ · Member since 2014 · 52 posts · 14 votes
    9y

    Congratulations! An awesome accomplishment at a young age! 

    0Reply
  • Filipe Pereira
    OP
    Property Manager · Windsor Locks, CT · Member since 2016 · 1k+ posts · 1k+ votes
    9y
    Originally posted by @Tommy Lamar:

    Filipe,

    Congratulations on your success, and congratulations on starting your owner property management business!!

    I recently started my own property management business here in Charleston, SC. It's great to see someone with a solid investment/architect/real estate background getting into the property management arena.  My opinion is that those of us that understand finances and real estate in general can help provide so much added benefit to our clients' investments. 

    Property management gets a bad rep and probably for good reason.  Knowing that people like us can enter the industry and provide exceptional service is what got me started in the first place.  I started my career as an accountant and financial planner before starting my own property management business. Working one on one with property management companies, as client's of the accounting firm, was when I first realized the need and opportunity for qualified property managers who not only understand management but finances as well. It seems as though there is a serious lack of knowledge in the industry. Someone like yourself will have great success, and property owners will appreciate the value you add to their investment.

    Connecting with realtors, wholesalers, flippers, contractors, tenants, etc. will all be exceptionally important in our journey to financial freedom! I truly believe that your property management business will be a major compliment to your overall real estate success. Feel free to reach out if you would like to bounce ideas off each other on how to continually improve our property management businesses!  

    Keep up the good work!

    Tommy

     I totally agree Tommy. I really do thing that there is a need in the market place for folks like us. I run a tight ship regarding my properties, and do the same with the ones I manage. I do believe that a good PM is worth every penny they earn - just consider all the benefits for the owner if the property is properly managed.

    I feel that the motif of so many of the BP podcasts is "you better have a good contractor and a good PM if you don't plan on doing it yourself". After hearing countless horror stories, I felt that there was some space for me to "play in"!

    0Reply
  • Filipe Pereira
    OP
    Property Manager · Windsor Locks, CT · Member since 2016 · 1k+ posts · 1k+ votes
    9y
    Originally posted by @Marilyn Moedinger:

    I'm perusing BiggerPockets this morning, like I usually do, and there's my former student @Filipe Pereira killin' it in real estate! Nice work, sir - can't really say I'm surprised! Keep it up - and don't forget the superpowers you bring to the table with your architecture education :)

    Well well well....looks like I've been caught! Hahaha Good to see you here on BP Marilyn, and thank you for the words! 

    Hope all is well at WIT and beyond!

    F

    0Reply
  • Filipe Pereira
    OP
    Property Manager · Windsor Locks, CT · Member since 2016 · 1k+ posts · 1k+ votes
    9y
    Originally posted by @Login George:

    @Filipe Pereira Congrats man! As someone who met you "early on" in your path to investing, its been a pleasure watching you grow in many ways. I could sense your drive and your passion when I first met you. And no doubt, that drive and passion are carrying you forward strong and fast! Not only have we been friends during this process, but I am also a benefactor of your exceptional services and systems (aka., your client). Its been a pleasure and I look forward to seeing you grow more!

    Thank you man! It's been a fun ride thus far, and I look forward to seeing how much more we can make happen! 

    0Reply
  • Jeremy Hans
    Rental Property Investor · Pensacola, FL · Member since 2009 · 8 posts · 4 votes
    9y

    Awesome story, I think it goes to show the faster you start the faster you can finish, especially before you have a family and all the accouterments and bills they include. 

    1Reply
  • Albert M.
    Investor · Bristol, CT · Member since 2010 · 28 posts · 4 votes
    9y

    Just wanted to pass along a note of congratulations to you, Filipe.  Speaking with dynamite RE broker/agent Rick Santasiere at the beginning of the year, he noted that "this kid" [no disrespect, but you’re very young; God bless you :-) ] "was going places" and clearly you’re paving a road to a nice future ahead of you.  To your continued success.  See you at a future Manchester (CT) Meetup.

    1Reply
  • Filipe Pereira
    OP
    Property Manager · Windsor Locks, CT · Member since 2016 · 1k+ posts · 1k+ votes
    9y
    Originally posted by @Albert M.:

    Just wanted to pass along a note of congratulations to you, Filipe.  Speaking with dynamite RE broker/agent Rick Santasiere at the beginning of the year, he noted that "this kid" [no disrespect, but you’re very young; God bless you :-) ] "was going places" and clearly you’re paving a road to a nice future ahead of you.  To your continued success.  See you at a future Manchester (CT) Meetup.

    Hahaha, thanks Albert! @Rick Santasiere is the bees knees. This is all his fault ;)

    I look forward to meeting you!

    1Reply
  • Eric Army
    Investor · Providence, RI · Member since 2014 · 24 posts · 16 votes
    9y
    Nice work! How far along did you get in the architecture firm? I only ask because approaching the value-add part of investing with an architects eye and knowledge can be really valuable. Being able to sketch a floor plan on a walk-through, and seeing where you can add a bed or bath when you get back to your car is a super valuable skill. (As is being able to "code hack".) What's hard to realize (for the first few years out of school) is how much value your skills can bring to the table. For your entrepreneurial pursuits, id encourage you to find ways to use your design training--- it's a mindset & skill that's in the minority in investment circles, which can give you a real advantage.
    0Reply
  • Jack B.
    Rental Property Investor · Seattle, WA · Member since 2014 · 1k+ posts · 1k+ votes
    9y
    Originally posted by @Parker Stiles:
    Originally posted by @Jack B.:

    Filipe, can you share your total net income from rents vs. your living expenses? Have you had to cut back on things? 

    I will be FI as soon as I move back into one of my rentals, but I'm still grinding it out in corporate since I have a high paying job. That said, I own roughly 2.5 million in real estate and am 10 years older than you, so amazing that you did this at 24...

    I'm in Seattle and my cash flow is only 30K, but that's more than I need if I downsize and live a simple life. I make another 30K off principle pay down and 200K a year appreciation for now. But eyeballing moving to a cash flow market when I retire in a few years.

     2.5M in ownership and cash flow of $30K?? Your buying in the wrong state my friend! Think of all your missing out on! I have around $270K in ownership and my cash flow (60% of gross) in GA is $27,144/yr. If you want help buying in a better cashflow market, lmk. Don't get stuck only investing in your backyard..

     Except I make 30K principle pay down and 200K a year in appreciation. Does Atlanta offer that? Typically if you are in a cash flow market, it's because the houses don't appreciate much, they barely keep up with inflation.

    I can turn equity into cash flow any time...

    0Reply
  • Rick SantasierePro Member
    Real Estate Broker · Granby, CT · Member since 2015 · 695 posts · 317 votes
    9y
    Filipe Pereira love the "fault" comment. Give yourself some more credit man, I am simply in this thing 100%, and you saw what it did for me (and what corporate did to me as well:) What it will do for you will be different, but it will give you more or a lot: Time. Money. Passion. Charity/mentoring/giving back. I LOVE the comments in this thread about how you should NOT have quit your day job. I have no judgement against these W2 types in the least, in fact, I have a healthy respect for them as well. However, the ones who said "You should have kept your day job" clearly don't understand who you are and what you have experienced in the 12-13 months in the cooperate world. Never let people poke holes in your ability to dream of making things bigger for you and those around you. When Elon Musk dropped out of high school (I don't know the full story...), but if can't imagine that ANYONE had ANYtHING positive to say about it:) He is changing the world (literally) as we speak.. The 40 hours that you have "freed up" to concentrate on something you are passionate about FAR supercedes the stability that others have stated on this thread. Stability will ALWAYS provide abundance to honest, hard working, and passionate people. It's the law man.. And to my dear friend Albert M. Filipe's "action" is something all of us should be inspired by!! Lets grab dinner soon my friend! Great post Filipe. Great thread, awesome comments, and keep up the inspiration. It is inspiring me to be better too!!
    3Reply
  • Edgar Martinez
    Architect · Hudson Valley, NY · Member since 2015 · 133 posts · 35 votes
    9y

    Congrats Filipe! I'm in somewhat the same path. My wife and I are hoping to get into a 3 or 4-plex within the next year. Happy to see it's working out for you! 

    1Reply
  • Filipe Pereira
    OP
    Property Manager · Windsor Locks, CT · Member since 2016 · 1k+ posts · 1k+ votes
    9y
    Originally posted by @Eric Army:

    Nice work!
    How far along did you get in the architecture firm? I only ask because approaching the value-add part of investing with an architects eye and knowledge can be really valuable.

    Being able to sketch a floor plan on a walk-through, and seeing where you can add a bed or bath when you get back to your car is a super valuable skill. (As is being able to "code hack".)

    What's hard to realize (for the first few years out of school) is how much value your skills can bring to the table.

    For your entrepreneurial pursuits, id encourage you to find ways to use your design training--- it's a mindset & skill that's in the minority in investment circles, which can give you a real advantage.

    Thanks Eric! I was at the firm about a year and a half. I have about 3 years total of in firm experience as I worked for a while before I graduated. 


    I agree - I can totally visualize things on my first walk through that many investors may not catch. That's how I already know that I will be adding a bathroom and closet in my most recent acquisition. It will bring it from a 3 bed 1.5 bath to a 4 bed, 2.5 bath. 

    There is nothing like some good ole' forced appreciation. ;)

    0Reply
  • Filipe Pereira
    OP
    Property Manager · Windsor Locks, CT · Member since 2016 · 1k+ posts · 1k+ votes
    9y
    Originally posted by @Rick Santasiere:

    Filipe Pereira love the "fault" comment. Give yourself some more credit man, I am simply in this thing 100%, and you saw what it did for me (and what corporate did to me as well:) What it will do for you will be different, but it will give you more or a lot: Time. Money. Passion. Charity/mentoring/giving back.

    I LOVE the comments in this thread about how you should NOT have quit your day job. I have no judgement against these W2 types in the least, in fact, I have a healthy respect for them as well. However, the ones who said "You should have kept your day job" clearly don't understand who you are and what you have experienced in the 12-13 months in the cooperate world. Never let people poke holes in your ability to dream of making things bigger for you and those around you. When Elon Musk dropped out of high school (I don't know the full story...), but if can't imagine that ANYONE had ANYtHING positive to say about it:) He is changing the world (literally) as we speak..

    The 40 hours that you have "freed up" to concentrate on something you are passionate about FAR supercedes the stability that others have stated on this thread. Stability will ALWAYS provide abundance to honest, hard working, and passionate people. It's the law man..

    And to my dear friend Albert M. Filipe's "action" is something all of us should be inspired by!! Lets grab dinner soon my friend!

    Great post Filipe. Great thread, awesome comments, and keep up the inspiration. It is inspiring me to be better too!!

    Thanks my man. I am confident enough in my self and the fact that I've run the numbers so many times, they're exhausted. As you know, I'm far too driven to fail, and I sure as hell don't want to return to a desk job!!

    0Reply
  • Account Closed
    Rental Property Investor · Anaheim, CA · Member since 2015 · 138 posts · 37 votes
    9y

    Congrats @filipepereira very motivating for sure. Amazing on how you started off so young. Wish you continued success. 

    1Reply
  • Sunny Rajvansh
    woodbridge, CT · Member since 2016 · 27 posts · 6 votes
    9y

    great Filipe, congratulations. 

    0Reply
  • Jack B.
    Rental Property Investor · Seattle, WA · Member since 2014 · 1k+ posts · 1k+ votes
    9y
    Originally posted by @Parker Stiles:
    Originally posted by @Jack B.:

    Filipe, can you share your total net income from rents vs. your living expenses? Have you had to cut back on things? 

    I will be FI as soon as I move back into one of my rentals, but I'm still grinding it out in corporate since I have a high paying job. That said, I own roughly 2.5 million in real estate and am 10 years older than you, so amazing that you did this at 24...

    I'm in Seattle and my cash flow is only 30K, but that's more than I need if I downsize and live a simple life. I make another 30K off principle pay down and 200K a year appreciation for now. But eyeballing moving to a cash flow market when I retire in a few years.

     2.5M in ownership and cash flow of $30K?? Your buying in the wrong state my friend! Think of all your missing out on! I have around $270K in ownership and my cash flow (60% of gross) in GA is $27,144/yr. If you want help buying in a better cashflow market, lmk. Don't get stuck only investing in your backyard..

    That doesn't sound bad if I want to get into just cash flow, but you have to keep in mind Seattle property actually appreciates. I make 200K a year in appreciation and another 30K a year in mortgage pay down for a total of about 260K a year. This will allow me to turn the massive equity I'm building into massive cash flow down the road.  

    0Reply
  • Vin Yan
    New York, NY · Member since 2017 · 10 posts · 5 votes
    9y

    Architect myself and working in NY. Connected with you, man! lets talk!

    1Reply
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