Rental Property Investor · Amherst, OH · Member since 2017 · 66 posts · 35 votes
Hello BP! I just closed on my first buy and hold property and wanted to share my success with everyone! I never would have been able to do it without the help of the BP community!
I actually considered getting into REI over a year ago, however I was quickly talked out of it by friends and family. Then in the spring of 2017 I was referred to BP by a friend and I finally found the courage to jump in! This year I have read alot real estate books, listened to many of the podcasts, and done research in the forums.
I would like to give a special thanks to @Michael Swan for all of your advice and encouragement along the way. I purchased a duplex in Euclid, Ohio on December 12th from Swanny and here are the numbers.
I'm glad I could help Mike get started!! I still have 4 single family in that area and a 12 unit there too. If Mike gets 9 more little deals like that, (his numbers are a bit conservative) and if he kept plenty in reserves like I suggested to begin, he could get about $40,000-$50,000 cash flow from 9 little rental properties (duplexes). That's what I did when I purchased 10 little single family here in San Diego in 2011-2012. To my delight, all 10 nearly doubled in value and I 1031 exchanged them for apartment complexes in NE Ohio in Mike's neck of the woods and went from $50,000 cash flow to the current $160,000 cash flow per year.
Rental Property Investor · Queens, NY · Member since 2017 · 93 posts · 128 votes
8y
@Mike Rosso Congrats! And good looking deal, does it need any work? Awesome that you still took action despite being talked out of it the first time around. Wish you further success with your investing.
Investor · La Porte, IN · Member since 2016 · 32 posts · 14 votes
8y
Congrats! That first property is usually the biggest hurdle for most investors! Keep it up and be sure to let us know once you get #2, #3, #4, and #5!!!
Rental Property Investor · Amherst, OH · Member since 2017 · 66 posts · 35 votes
8y
@Lionel Li thanks! It really didn't need any work, and both units were already occupied at the time of purchase. It was a foreclosure a few years ago so most of the property had been updated. It actually had a new roof put on in April so that was an added bonus.
Rental Property Investor · Amherst, OH · Member since 2017 · 66 posts · 35 votes
8y
@Jeremiah Ashe thank you! Yes it was a huge hurdle for me to overcome. I have always been on the conservative side when it comes to money management/investing. I used to contribute 15% of my paycheck to my 401k, now I do the minimum for company match and put the rest towards REI. Look forward to sharing more deals in the future!
Rental Property Investor · Amherst, OH · Member since 2017 · 66 posts · 35 votes
8y
@Boyan Lalic thank you! I agree the numbers are pretty good I would describe the area as a solid C class neighborhood. I looked in areas around where I live, however I quickly found that price to rent ratios were much better closer to Cleveland. Best of luck investing in the US!
Rental Property Investor · Amherst, OH · Member since 2017 · 66 posts · 35 votes
8y
@Erik Anderson thank you! Yes I agree too many people are negative about REI. Couldn't tell you how many people asked what I was going to do about the 2a.m. clogged toliet!
Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
8y
@Mike Rosso These numbers are superb, so congratulations on taking that leap of faith into the waters of real estate investing mitigated by educating yourself even though well-intentioned family and friends tried to talk you out of it.
So, what's next? Are you thinking of REFI'ing or buying more or both?
Rental Property Investor · Amherst, OH · Member since 2017 · 66 posts · 35 votes
8y
Hello @Ola Dantis thank you! Next I plan on saving money and hopefully buying a similar property next year. At this point in my life I'm looking for high cash flow properties for which I can build a reserve and then use the extra money for future down payments. At some point I would like to get into lager MF, however it will be some time before am ready to jump into that arena!
I'm glad I could help Mike get started!! I still have 4 single family in that area and a 12 unit there too. If Mike gets 9 more little deals like that, (his numbers are a bit conservative) and if he kept plenty in reserves like I suggested to begin, he could get about $40,000-$50,000 cash flow from 9 little rental properties (duplexes). That's what I did when I purchased 10 little single family here in San Diego in 2011-2012. To my delight, all 10 nearly doubled in value and I 1031 exchanged them for apartment complexes in NE Ohio in Mike's neck of the woods and went from $50,000 cash flow to the current $160,000 cash flow per year.