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?
I own 6 units in MD, looking for more and hope to scale up to apartments and bigger ventures in the next few years. Great information and feedback on this thread.
Great question:
I have 14 units (mix between condos, sfr, duplexes, and multiunit). I purchased at extremely low value and now rehabbing most of them. Three units are rented and plan on completing the remaining construction by the end if the year.
4 sfr on 15 year notes. Self managed. Bought first in 2007 and sister-in-law’s dad told us he found it wasn’t worth the hassle until owning 3. Took advice, probably true with historical appreciation. Set up a system and three are not much more work than 1.
Jason C. I like your question! I’ve been doing this for a couple years myself. I own an insurance agency in the town that I’ve chosen to invest in and live about 45 minutes north. I’ve got 4 buildings with 33 residential apartments and 14 commercial spots. One of the people on here talked about per for price and he’s right, it’s so different in each town or State. My property is worth about $3mil but I’m maxed with the debt load as all my deals had some owner financing involved.
I’ve got a family to feed and another business to run so coming up with down payments was impossible. My realization isn’t for another 15 years when I turn 55. I manage these myself and have a part time maintenance guy that lives in the town. My goal is to be at 100 doors in the next ten years but have everything paid off by the time I’m 60 (20 years). Feel free to shoot me a message, I’m a wide open book. Best of luck to you too!
John
@Llewelyn A. congrats on your success in Brooklyn! Now of course you don't have 17 million in assets just because you own 17 million in valuation on your apartments. Unless you have $700k in equity in each of them.
My wife and I own 5 sfrs at the moment. We started 10 years ago by moving out of our primary into a duplex of sorts (using a heloc for the dp), keeping the primary as a rental. So then we had two rentals. then we bought the house next door and moved into that, renting our primary again. Then we cash out refi'd the original house to pay cash for a house in independence mo. for my daughter and her family to live in (cheap houses out that way-27k) Now we're under contract for a primary and additional income property next door to each other in Florida. So soon we'll be at 6 doors total. I am probably a little risk averse so I prefer the slow and steady approach.
I think it's a little confusing in the statement "you don't have 17 million in assets just because you own 17 million in valuation on your apartments. Unless you have $700k in equity in each of them." on my part and I just wanted to make sure we are on the same page.
Asset Price to me is the Fair Market Value (FMV) that one would pay for the Asset. So it's the CURRENT Value of the portfolio which is around $17 Million.
HOWEVER, Asset Price is different than Equity. Equity is the FMV minus the Liens on the Portfolio.
So if I am calling the FMV the Asset Price, and I valued it at $17 Million, then the FMV=Asset Price= $17 million.
So, in your statement, I'm not sure what you mean by "17 million in valuation." This is the FMV? Correct? And what do you mean by 17 Million in assets? Is that different than the 17 million in Valuation?
If I can get an understanding of what you mean by Asset Price and what you mean by Valuation, that would help since I am equating them to be the same.
It seems that you are saying that Asset Price is Equity since you mentioned $700k per apt in equity is $17 Million.
If that's the case, then we are not talking Apples to Apples.
To me, Asset Price = FMV. Equity is FMV minus Liens.
So to clarify, I have $17 Million in FMV for the portfolio, but NOT $17 million in Equity since there will be mortgages on the buildings.
I started just over a year ago and own five out of state units (one fourplex and a house). This was an off the market and packaged deal that really worked out well. I now focusing my search locally and hope to close on 3-4 more units by the end of this year.
New to BP myself, now retired and doing this for cash flow. I own a 12 unit apartment and 2 duplexes within an hour's drive from home. Looking for another deal or two-it is addicting!
I love real estate and like to see it, and feel it. It is satisfying for me to come here and talk REI and improve my skills, and perhaps even help others.
I'm an instate only investor. I have not been on the site recently but have been listening to podcasts. Me and a partner have 16 doors in five properties, my brother and I have 4 single families, my wife have has 3 properties
I've had my head down rehabbing another 6 units in two building while trying to grow my GC business. And not succeeding very well
I own two 4-plex properties and two single family homes. 10 units total. I am looking to buy one property per year and I am on track having started in 2014.
I used practically every beginner strategy to acquire these properties. House hacking with FHA, 401k loans, live-in flip, BRRRR. My next property will be purchased using a line of credit from my primary residence.
I own 3 SFH in Santa Cruz that have 15 bedrooms total. The bedrooms are rented individually to students. I also own a condo in Maryland. After 18 years of investing all the properties are paid off. I am going to buy more, but also with cash. I am a realtor and PM so I like to be close to my properties. That makes for fewer of them, but great appreciation since I am in the Silicon Valley. I can honestly say that I am pleased with my choices and feel like I have given my family financial security with this way of investing. In 2001, during the dot com bust I was interviewed on the CBS evening news with Dan Rather. Not sure why they picked me to interview about the real estate bust that went along with the stock market bust. I had bought my first 2 rental properties in 2000. I told the nation that I wasn't worried about the stock market crash. While my fellow realtors spent 1999-2000 buying internet stocks that were valueless in 2001, I took my profits from the boom and put a down payment on 2 rentals. My properties were rented, and I could weather the storm. I was right. As Will Rogers once famously said, "Buy land. they aren't making any more of it."
Jason, I don’t think answer to that question will realistically tell you who is new or not. Number of properties doesn’t matter if you over paid and over leveraged.
I’d think a new investor would be classified as someone who hasn’t managed through an RE downturn, and that makes me a new investor.