How many units do you own?

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How many units do you own?

Jason C.
Rental Property Investor · Merrick, NY · Member since 2017 · 33 posts · 31 votes
I’m curious to see who exactly visits bigger pockets. Is it mostly newbie/wanna-be investors or more seasoned/experienced investors? If you are investing, are you in state or out of state? I’ll start by answering my own question, I currently have 6 units out of state and will be adding as soon as I find another deal, how about you?
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Sachin H.
Maricopa, AZ · Member since 2017 · 30 posts · 54 votes
8y

Only 1.

Closed my 1st investment property (out of state) in Jan - Just got the lease signed! Ohoo!

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y
    Originally posted by @Jason C.:
    I’m curious to see who exactly visits bigger pockets. Is it mostly newbie/wanna-be investors or more seasoned/experienced investors?

    If you are investing, are you in state or out of state?

    I’ll start by answering my own question, I currently have 6 units out of state and will be adding as soon as I find another deal, how about you?

    great subject and thread...  I am only asking question of others to try to get them to talk a little more in-depth about their experiences for the benefit of those starting their journey.  Plus I am just curious.

    I also wonder what the end game is for those that have jumped on this band wagon the last 5 to 7 years.. is it keep them forever.. roll up... and keep growing..  also I sometimes wonder if folks also realize if they tire of landlording that recapture comes to play if they simply want to exit..

    I know or I think I know most folks thought process is to never sell.. but that usually is not how life works for a myriad of reasons.

    be great to get some feedback on your desires as a landlord

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  • Account Closed
    Investor · Saskatchewan , Saskatchewan · Member since 2017 · 311 posts · 233 votes
    8y
    11 units right now. And I’m pretty comfortable with that number actually. May add a couple more but I’m able to be picky now so I’m in a good spot overall. They’re all 5 hours away, but only because I moved 5 hours from them ~5 years ago. Here in Canada 5 hours isn’t even the next province!
    4Reply
  • Richard Naimy
    West Hills, CA · Member since 2018 · 23 posts · 9 votes
    8y
    I am a newbie just starting out looking at several markets trying to decide what market I should start in as I live in Los Angeles, CA which is way to hot... NC or TX? Working on getting over my fear of investing out of state. Trying to be a sponge!
    4Reply
  • Justin B.
    Investor · Gaithersburg, MD · Member since 2013 · 660 posts · 441 votes
    8y
    Originally posted by @Jay Hinrichs:
    Originally posted by @Justin B.:

    42 and counting.

    Justin all SFR's ??? did you aquire through usual means Off market mls ? and then did you do your own rehab.. or I suppose some of the unit needed light to no work and you just rented them out.. do you self manage ??

    Only reason I ask is someone like you who I would put up there as a top 10%  a lot of those starting out could learn a lot from your thought process and how you run them.

     The shortish long answer.

    -- Bought 13 SFR's from 2010-2016: 8 through different usual means (Agent, Friend, MLS, Driving Around, etc), 5 through a turnkey provider. None of which needed major work.
    -- Bought 5 MFR's from 2016-2017 in this order (5-unit, 3-unit, 12-unit, 14-unit). 2 of which needed a decent amount of work.
    -- Sold 5 of the SFR's in 2017 (The turnkey ones) to go back down to 42.  It's just part of our plan to sell off all the SFR's eventually (and use cash for future MFRs) because our focus has moved to MFR's.  In case you're wondering, no reason why the 5 we sold so far happened to be the turnkey ones, except that they were all in the same area and we found a single buyer for all 5 at once.  The fact they happened to be the turnkey ones is just coincidence.

    Currently, our focus is getting all the MFRs in their best cash flow earning position (since we bought all of them between Dec 2016 to August 2017).  3 of the 4 are pretty much there and the biggest one needs a few more months, then the plan is to add one more 10+ (maybe 20+) unit in Mid-Late 2018 and then go from there.

    All properties have a PM (none self-managed anymore).  We did self-manage a couple of the SFRs along the way but only for a short time before turning them over (usually upon tenant moving out).

    5Reply
  • Diane G.
    CA · Member since 2016 · 1k+ posts · 1k+ votes
    8y
    @ Jay Hinrichs - how many units do you currently hold? Exclude those that you are building to sell... thanks
    0Reply
  • Ryan ShortPro Member
    Investor · Boston, MA · Member since 2016 · 77 posts · 55 votes
    8y
    I currently own 4 units in MA, and just finished my cash out refinance to finish my first BRRRR strategy. I’m looking for a 10-20 unit property to reposition with a partner. Thanks everyone have a good day.
    1Reply
  • Shiloh LundahlPro Member
    Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
    8y

    All together, as of today, I have 41:

    1 commercial building with 12 units

    2 primaries with 2 guest houses

    3 duplexes (6 units) in Indy and 1 SFR there too

    And 18 SFR In Arizona.

    If you ask me next month it may be more. And I don't know if I would say that I "own" them.  My different companies own them but I benefit from them.  Current occupancy is 85%.  17 of them are held with a partner.

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  • Tanisha Baker
    York, PA · Member since 2018 · 8 posts · 5 votes
    8y
    3 units on the mission to add 1-4 within two months
    3Reply
  • Jerry W.Pro Member
    Moderator
    Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
    8y

    I actually don't know.  I have intentionally sold a few lately, but unintentionally bought a few.  I would guess I have around 30 doors of residential at the moment.  As of last month I am down to 3 out of state who someone else manages.  I have about 12 in state that are semi managed by a local agent.  The rest I manage myself.

    4Reply
  • Jon L.
    Real Estate Agent · Orange County, CA · Member since 2016 · 36 posts · 19 votes
    8y

    My dad and I own 21 units in Southern California. A few in 1 apartment complex, and a few single family homes and duplexes, self-managed. 

     Looking to own about 30 and stopping by the time I'm 45 years old.  My goal is to take care of them and find good tenants. New roof, windows, plumbing, electrical, upgraded kitchen, bathroom floors.  Especially in southern California, we'll always have a long list of tenants. I'm not going for luxury apartments, but class C apartments. I take out the 12 kitchen cabinets and I put in 8 and Quartz. Each unit gets $4500-$7500 in upgrades and it's done for 5-15 years. We don't allow more than 1-2 person per bedroom and love working with Housing and Veterans.

    Looking to travel and work with charities once I'm fully retired :) Good luck to all!

    4Reply
  • Sandeep Yarlagadda
    Tucson, AZ · Member since 2018 · 5 posts · 5 votes
    8y
    I am new to BP and investing in real estate. I have 4 units through a turnkey.
    1Reply
  • Marcus Johnson
    Investor · Saint Paul, MN · Member since 2015 · 663 posts · 512 votes
    8y
    Is this the part where I put 26.2 sticker on my car? The number of units you have, has nothing to do with success or net worth. I want t have 5 to 7 paid off duplexes. Right now I have one very successful duplex and am looking for number 2.
    6Reply
  • Shiloh LundahlPro Member
    Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
    8y

    @Marcus Johnson you wrote the number of units you have, has nothing to do with success or net worth.  What do you mean by that?

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  • Robert Schumacher
    Investor · Campbell, CA · Member since 2016 · 76 posts · 91 votes
    8y
    Jason C. I’ve been in real estate for 2 years and have 113 units. They were all self managed until Jan 1st and now we only manage 28 units. The rest are with a PM. We started with a couple SFH and then a 4-plex, followed by repositioning a 10 unit complex. Most of the units are in C class neighborhoods, and the SFH are in B class neighborhoods. Last year we took on a 74 unit complex that is a full repositioning and expect it to take 2 years total. We still have 23 vacancies that we are remodeling 2 per month (as cash flow allows). Most recently we stumbled across a 11 unit building that was too good to pass up. We have created some efficiency by having the units all with 20 minutes of each other. It’s been challenging (to say the least) because I’ve been doing it off the side of my desk while running another business.
    10Reply
  • Ben D.
    CA · Member since 2013 · 64 posts · 58 votes
    8y

    @Robert Schumacher That's impressive that you went from SFHs and four-plexes to a 74 unit complex.  I am curious how you made that transition. Did you find the property through a broker?  Finance with a commercial loan?  Thanks for sharing.

    0Reply
  • Abel Sanchez
    Compton, CA · Member since 2017 · 22 posts · 11 votes
    8y
    I currently live in a studio and finally open escrow on a small duplex in the city of Compton CA, hopefully this is the beginning of my investor career, and a successful one, any advice from the experienced is welcome, and appreciated.
    7Reply
  • Robert Schumacher
    Investor · Campbell, CA · Member since 2016 · 76 posts · 91 votes
    8y
    Ben Durwood We has success with a 10 unit rehab first and it went smooth. The 74 unit was pretty rough and bank owned. We tossed a stupid offer. We paid $1,050,000 and it has rental potential of $52k a month. We were under capitalized with only 20 units occupied. The property lost money for a few months but we wrote out a 2 year plan after walking every unit and the cost to repair. It’s been a great learning opportunity. We have made some mistakes but it’s going well.
    8Reply
  • Robert Schumacher
    Investor · Campbell, CA · Member since 2016 · 76 posts · 91 votes
    8y
    @Abel Sanchez - can you stay in the studio and rent both of the duplex units? If this makes more sense, i wouldn’t rush to live in the duplex. You will have to look at the numbers. CONGRATS !!
    1Reply
  • Robert Schumacher
    Investor · Campbell, CA · Member since 2016 · 76 posts · 91 votes
    8y
    Ben Durwood We did get the property through a broker but it wasn’t a pocket listing. I’m not sure how we got the financing if I’m really honest. I think the appraiser must have put a lot of value on comps and overlooked the condition. We did put 25% down and I have a 30 year relationship with the bank. The loan is fixed for 10 years, with a 25 amortization schedule.
    0Reply
  • Heather Miner
    Morrison, CO · Member since 2018 · 33 posts · 17 votes
    8y

    We have 10 units. Four units in Denver area, two in Colorado Springs and four in Grand Junction. We jumped around as the market caught up to us and now we are looking out of state for the next one(s). 

    6Reply
  • Michael Tempel
    Property Manager · Minneapolis, MN · Member since 2014 · 380 posts · 167 votes
    8y
    Originally posted by @Jay Hinrichs:
    Originally posted by @Michael Tempel:

    We have around 1000 units under management that fluctuates up and down based on property sales or new management right now.

     just curious if your a principal in all those units or PM? or both..

    either way full time job I suspect.

    A combination of all of the above :-).   My primary business is fee management and value add renovations.   We have completed 8 large scale projects and typically I am given equity in the process for:

    A. Sourcing and assisting on the acquisition using networking and proprietary sourcing including lenders/lawyers/investors.  

    B. Value Add renovations.   We do Granite/quartz counters, full kitchens, ceramic baths and overall RE-branding of the community (typically 50 plus units).  

    C. Put a management team in place to handle marketing, lease up and often GC in conjunction with bank and title for construction draws etc.  

    D. Ideally bring rents up 30+ perecent, equity 30+ in a solid well branded community refi...pay investors and repeat :-).  

    I also find and syndicate and work with multiple partners whenever possible.   

    My rule is no matter how insane a deal gets, there is always a solution.   I often repeat a line Tim Ferris says “what would the solution be if it were easy”?   It is amazing how we over complicate things by thinking it has to be hard...often the simplest answer is the best/fastest solution.  

    Sorry, very long answer, but Yes, full time job and obsession :-).  

    5Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y
    Originally posted by @Jordan Moorhead:

    @Jay Hinrichs I may be interested. Can I ask where in IN? I'm actually originally from Indy but grew up in Louisville.

    I've been interested in them for a while but have never owned one. Over the past year or so I've been learning as much as I can about them. The more I learn the more interested I become. I'm interested because I think affordable housing is experiencing a huge shortage. I also like being able to sell the trailers to tenants and rent the pads to them.

    Of course we only talk about winners! ;) What went wrong with the one that failed? I have a buddy that has one with a well and it sounds like the EPA is driving him nuts so I'd kind of like to avoid that.

     we were able to fix the well issue.. but septic system was old and bad and new rules necessitated 250k to redo the whole system up to modern code..  30 miles out of INdy.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y
    Originally posted by @Diane G.:

    @ Jay Hinrichs - how many units do you currently hold? Exclude those that you are building to sell... thanks

     2  and as soon as possible I will sell those... I did own about 350 doors 4 years ago now... bought them in 2010 2011 exited when partner bought me out .. probably sold a little early.. but you know partnerships.. 54 of them  bought in atl at court house steps kept them only 18 months and got an offer could not refuse from hedge fund and sold.

    in short term holds we have a little over 275 doors in inventory right now. plus 35 new builds in various stages..

    and about 300 lots on the books going through entitlements.   And a very vigorous  PEFORMING first deed of trust or mortgage business that boards between 500k and 1 million a month in new notes.. just topped 1,500 notes , although we experience a lot of payoffs as well on the note side.. but that's been a great business.. so we just traded rental income for interest income.. we find that side of the business less work and risk.. And one reason is I have been in the paper business for 30 plus years.. and of course this is advanced mature business's in no way mom and pop.. capital needs are just too much.. most of our notes go to our closely held list of investors.  

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y
    Originally posted by @Shiloh Lundahl:

    @Marcus Johnson you wrote the number of units you have, has nothing to do with success or net worth.  What do you mean by that?

     what I gleaned from that is you can have someone with 100 units making 100 a month profit net after all cost and expenses so net if 10k a month.. or you can have someone with 20 units all paid for netting 500 a month after costs

    and still have 10k a month NO debt and tons of real equity..

    I think what he is saying is that those that scale up using massive or max debt  probably don't have what they think they have especially if forced for some un seen reason to sell.

    sales cost and recapture would eat up all the 20% equity.. and in most cases they would be equity negative.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y
    Originally posted by @Michael Tempel:
    Originally posted by @Jay Hinrichs:
    Originally posted by @Michael Tempel:

    We have around 1000 units under management that fluctuates up and down based on property sales or new management right now.

     just curious if your a principal in all those units or PM? or both..

    either way full time job I suspect.

    A combination of all of the above :-).   My primary business is fee management and value add renovations.   We have completed 8 large scale projects and typically I am given equity in the process for:

    A. Sourcing and assisting on the acquisition using networking and proprietary sourcing including lenders/lawyers/investors.  

    B. Value Add renovations.   We do Granite/quartz counters, full kitchens, ceramic baths and overall RE-branding of the community (typically 50 plus units).  

    C. Put a management team in place to handle marketing, lease up and often GC in conjunction with bank and title for construction draws etc.  

    D. Ideally bring rents up 30+ perecent, equity 30+ in a solid well branded community refi...pay investors and repeat :-).  

    I also find and syndicate and work with multiple partners whenever possible.   

    My rule is no matter how insane a deal gets, there is always a solution.   I often repeat a line Tim Ferris says “what would the solution be if it were easy”?   It is amazing how we over complicate things by thinking it has to be hard...often the simplest answer is the best/fastest solution.  

    Sorry, very long answer, but Yes, full time job and obsession :-).  

    I very much like the PM sweat equity play.. I know PM's that wont have anything to do with equity or commissions strictly PM.. and those guys have 5k to 10k doors and do quite well managing a to B class 50 unit and up apartments on the west coast.. about as easy and solid of property to manage frankly.

    But I love the entrepreneurial of using your contacts skills and experience to leverage into equity on these deals.. I think its a brilliant move personally.. that's why I was curious and was hoping you would expound..   

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