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

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

Property Manager 路 Windsor Locks, CT 路 Member since 2016 路 1k+ posts 路 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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Real Estate Investor 路 Las Cruces, NM 路 Member since 2016 路 186 posts 路 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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  • Bridgeport, CT 路 Member since 2017 路 38 posts 路 8 votes
    9y

    Heyy Felipe congrats bro keep it up and don't try to use this time for granted use this time to keep growing your portfolio and pass the knowledge to others who are willing to accomplish 

  • Bridgeport, CT 路 Member since 2017 路 38 posts 路 8 votes
    9y

    other things Felipe I would like to know if you would like to share is how you get the 40k to the mortgage and how if like you said had a not to good pay job how do you qualify for the mortgage

    Sorry for been taking your brain without a coffee or nice dinner invitation 馃榿

  • Investor 路 Rochester, WA 路 Member since 2013 路 221 posts 路 30 votes
    9y
    Awesome man!
  • Investor 路 New York City Metro area, NY 路 Member since 2013 路 39 posts 路 12 votes
    9y

    Great story...and keep it going. Definitely inspiring!

  • Property Manager 路 Windsor Locks, CT 路 Member since 2016 路 1k+ posts 路 1k+ votes
    9y
    Originally posted by @Amauris Lora:

    other things Felipe I would like to know if you would like to share is how you get the 40k to the mortgage and how if like you said had a not to good pay job how do you qualify for the mortgage

    Sorry for been taking your brain without a coffee or nice dinner invitation 馃榿

    Hey man, I worked hard, lived below my means and saved as much as I could...I lived on a budget, and put money aside every month!

  • Bridgeport, CT 路 Member since 2017 路 38 posts 路 8 votes
    9y

    thanks for the answer and all my respect for those who started from the bottom without godfathers or sugar daddy like you

    Keep it up man 

  • Real Estate Wholesaler 路 Charlotte, NC 路 Member since 2016 路 7 posts 路 3 votes
    9y

    Awesome story!!! Love the idea to rent out rooms while still residing in the home... I'm looking to go this route. Keep it up

  • Real Estate Agent 路 San Jose, CA 路 Member since 2017 路 111 posts 路 66 votes
    9y

    Good stuff man. My hat goes off to you. I feel like having the option not to work supersedes a lot of the negative comments on the hardships of obtaining a loan without a W2 job. If one of your main goals was to be able to quit the 9-5,  and I'm sure it is for many, then you are already there and living that dream. That's what matters right! Kudos to you brotha!

  • Property Manager 路 Windsor Locks, CT 路 Member since 2016 路 1k+ posts 路 1k+ votes
    9y
    Originally posted by @Johnny Hoang:

    Good stuff man. My hat goes off to you. I feel like having the option not to work supersedes a lot of the negative comments on the hardships of obtaining a loan without a W2 job. If one of your main goals was to be able to quit the 9-5,  and I'm sure it is for many, then you are already there and living that dream. That's what matters right! Kudos to you brotha!

    Thank you Johnny. It was a very strong goal of mine. 20 days out, I'm the happiest I've been in a long time....and I have my first closing in 5 days!!!

    POSITIVITY ALWAYS WINS!


    :D  

  • Real Estate Investor 路 Sunny Isles Beach, FL 路 Member since 2013 路 788 posts 路 333 votes
    9y

    Motivating!

  • Rental Property Investor 路 North Charleston, S.c. 路 Member since 2017 路 2 posts 路 0 votes
    9y
    Well done! Great story
  • Real Estate Agent 路 Merrick, NY 路 Member since 2016 路 6 posts 路 5 votes
    9y

    Congrats! What a great story. Keep up the great work and I wish you all the best with your property management company. I know you'll do great!  

  • Chicago, IL 路 Member since 2014 路 710 posts 路 200 votes
    9y

    How do you retire on $4K Gross?  

  • Property Manager 路 Windsor Locks, CT 路 Member since 2016 路 1k+ posts 路 1k+ votes
    9y
    Originally posted by @John Weidner:

    How do you retire on $4K Gross?  

    The property management company generates an income for me as well at this point, as I already had clients before I jumped ship. So that's in addition to any numbers you might have added up. 

    Plus, there are a lot of people in this country that don't gross 48K a year. Personally, that's not a lifestyle I want to live, but there are plenty who do. 

  • Property Manager 路 Windsor Locks, CT 路 Member since 2016 路 1k+ posts 路 1k+ votes
    9y

    35 Days ago (but who's counting, right?) I put my architecture career on hold. Behind me I left job security, benefits and paid vacations. I am humbled to say that in the first 30 days I have already had my first closing! This is a Tri Plex in Manchester, CT.

    In addition, I am serving as the buyer鈥檚 agent for another .7 million in active contracts expected to close in the next 6 weeks! 

    If you are interested in investment properties please reach out! I have clients based as far away as Seattle, WA and others as close as New York. I LOVE working with investors and am here to provide as much value as I can. For now we are covering a 25 minute radius of Hartford (give or take!). 

    Happy investing my friends! :)

  • Investor 路 Manchester, CT 路 Member since 2016 路 34 posts 路 10 votes
    9y

    Hey where's my shout out? You can't use the likeness of my photo without giving me a shout out!

  • Property Manager 路 Windsor Locks, CT 路 Member since 2016 路 1k+ posts 路 1k+ votes
    9y
    Originally posted by @Michael Cavicchi:

    Hey where's my shout out? You can't use the likeness of my photo without giving me a shout out!

     I'm sorry, but who are you? hahahhaha only kidding.

    It's true, folks...
    Mike was my very first client. 

    In all seriousness, thanks for trusting me bud. Now go build that Datsun! 

  • Property Manager 路 Windsor Locks, CT 路 Member since 2016 路 1k+ posts 路 1k+ votes
    8y

    Triple W story - win win win! 

    This transaction was a direct result of this thread, and that makes me one very happy camper.

    After I created this thread I was approached by quite a few people, one of which turned out to be the buyer of this 4 plex in Bristol Connecticut. The new owners are from the west coast and didn't feel that they could get the returns they desired in their local market, so they turned to me! 

    I served as their buyer's agent and am now in the process of filling two of the vacant units. The owners got a 4 plex at a reasonable price, and were able to build a relationship with their future property manager along the way. 

    The property will provide passive income for countless years to come, and should perform quite nicely! Out of state investing IS a feasible option, so long as you have a solid team in place! 

    Happy investing, 
    Filipe 

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