0 to 18 units in two years

0 to 18 units in two years

Jordan MoorheadBusiness Member
Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes

I just closed on another 12 units today bringing my total to 18 units!

This won't allow me to retire in luxury but will cover all of my basic expenses if something were to happen and put me on the sideline for a while.

I started in 2016 with a Duplex that I bought in Minneapolis with a 3.5% down FHA loan. About a year later I closed on a 6 plex in Louisville KY, which was bought with owner financing.

The one that closed today was two more six plexes and the previous six plex refinanced into one loan. The purchase was a 14% cash on cash return with all expenses and management. 

The purchase price on the original six plex was $320,000. These next two were $703,000, together as a package. The current gross rents are right around $11,000 but will be closer to $14,000 after we turn the units and raise rents. Both of the new buildings need minor renovation and one unit needs a major overhaul.

I won't be managing any of it, used US Bank to do that loan and refinance. Seven or eight banks told me no before I went to them and they said yes. The majority of the 20% down payment came from the proceeds of my duplex sale and I was able to make up most of the difference, borrowing a bit from family to get the deal done.

After this I'll be looking for more apartments and a mobile home park to try and keep growing the portfolio!

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Real Estate Broker · Minneapolis, MN · Member since 2015 · 109 posts · 125 votes
8y

Good work man, now it is time to buy some commercial real estate to start throwing some gas on the fire.   Hahaha.

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  • Rental Property Investor · Minneapolis, MN · Member since 2016 · 161 posts · 221 votes
    8y

    Damn @Jordan Moorhead; just killing it. Good for you. 

  • Real Estate Broker · Minneapolis, MN · Member since 2015 · 109 posts · 125 votes
    8y

    Good work man, now it is time to buy some commercial real estate to start throwing some gas on the fire.   Hahaha.

  • Investor · Louisville, KY · Member since 2017 · 102 posts · 80 votes
    8y

    boom. Well done. I’m gonna catch up to you ;)

  • Developer · Denver, CO · Member since 2017 · 9 posts · 4 votes
    8y
    Good stuff my man! Way to hustle and get creative to make things happen. It’s inspiring
  • Real Estate Broker · Louisville, KY · Member since 2014 · 362 posts · 232 votes
    8y
    👏👏👏👏👏👆💵💵💵 good job Jordan!
  • Tim SwierczekPro Member
    Lender · White Bear Township, MN · Member since 2016 · 1k+ posts · 1k+ votes
    8y

    @Jordan Moorhead  i’m super excited for you couldn’t happen to a nicer dude.

  • Minneapolis, MN · Member since 2018 · 6 posts · 6 votes
    8y

    Awesome to hear man - crushing it!

  • Las Vegas, NV · Member since 2018 · 9 posts · 3 votes
    8y

    The take over! Good job!

  • Specialist · Louisville, KY · Member since 2017 · 166 posts · 154 votes
    8y
    Jordan Moorhead Where are these 12 more units at? Nice work!
  • Minneapolis, MN · Member since 2017 · 35 posts · 18 votes
    8y

    Great job Jordan.  By the way, for my Minnesota people. Are there any meet-ups that occur in the Twin Cities area?  My wife and I continue to plug away adding properties (up to 7 rental homes now), but I'm interested to meet others in the area to see what people have been doing for investment properties and what has been successful, along with sharing our successes/failures.  Any info is greatly appreciated.

         Thanks,

             Corey

  • Rental Property Investor · Minneapolis, MN · Member since 2017 · 19 posts · 12 votes
    8y

    Great news Jordan.  Dont stop.  Keep expanding your empire. 

  • Member since 2018 · 13 posts · 5 votes
    8y

    Appreciate the success story Jordan.  Inspiring to hear for someone starting out like myself, for sure.

  • Investor · Atlanta, GA · Member since 2015 · 139 posts · 98 votes
    8y

    Awesome job and inspiring!  

  • Knoxville, TN · Member since 2018 · 24 posts · 12 votes
    8y

    Yessir!!!!

  • Tim SwierczekPro Member
    Lender · White Bear Township, MN · Member since 2016 · 1k+ posts · 1k+ votes
    8y

    @Corey Robert Leet I personally attend 5 Twin Cities Investing meet-ups, but I think there are about 10.  Most seem to take the Summer off because attendance drops too much during the Summer. PM me and I'll send you groups I attend and at least 2 more that I'm aware of.

  • Rental Property Investor · SF Bay Area · Member since 2016 · 234 posts · 103 votes
    8y
    Jordan Moorhead awesome job bro!!!!congrats and more success!!! Btw, how’s your market right now?
  • Realtor · Minneapolis, MN · Member since 2012 · 27 posts · 11 votes
    8y

    @Jordan Moorhead Congrats!!!  Awesome to see how quickly you've scaled the business.

  • Professional Engineer · Minneapolis, MN · Member since 2017 · 117 posts · 75 votes
    8y

    So awesome @Jordan Moorhead!!

  • Rental Property Investor · Minneapolis, MN · Member since 2016 · 21 posts · 9 votes
    8y

    Way to go, @Jordan Moorhead!

  • Real Estate Agent · Minneapolis, MN · Member since 2016 · 361 posts · 296 votes
    8y

    Dang, great work @Jordan Moorhead ! That duplex househack has done you well! 

    It still amazes me how fast REI can multiply on itself so quickly.

  • Real Estate Agent · Shelbyville, KY · Member since 2017 · 30 posts · 23 votes
    8y

    Good job! Keep going!

  • Rental Property Investor · Saint George, UT · Member since 2018 · 22 posts · 7 votes
    8y

    Congrats on the success! @Jordan Moorhead One of the best parts of your experience is where you mentioned that you went to seven or eight banks, who all told you no, but you kept pushing the rock up the hill, until you found a bank that said yes. Great inspiration, thanks! 

  • Jake ThompsonPro Member
    Rental Property Investor · Albany, OR · Member since 2015 · 312 posts · 136 votes
    8y

    Nicely done Jordan! I have a duplex that is cash flowing well, but I am playing with the idea of selling and taking the equity to reinvest in more units. I think buying a retiring investor's portfolio could be a great option!

  • Investor · New York City, NY · Member since 2015 · 28 posts · 7 votes
    8y
    Congratulations!
  • Jordan MoorheadBusiness Member
    OP
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    8y

    @Tim Swierczek thanks Tim!

    @Kyle Schlosser they're over in 40218

    @Corey Robert Leet yes there are. @Tim Swierczek and I actually host one!

    @Fernando E. I'm still finding deals in Minneapolis. The reason for buying these in Ky is that I'm from there and want to have rentals where I always know I'll be visiting. The returns aren't bad either!

    @Bowman Klinkenberg thanks man!

    @Nathan Platter houshacking was a huge part of this being able to happen. I learned a lot, saved a ton of money and made money off the sale to help. I plan on finding another househack soon and won't be abandoning the 2-4 space just because I'm buying larger buildings. The loans you can get on the smaller stuff are amazing. No other area can you put 3% down and control a quarter million dollar asset. There's no reason not to do it.

    @Chris Nelson if the deal works there's always someone that will take it

    @Jake Thompson the only reason I sold was that I had a good place to put the money. Start looking and you'll find something eventually!

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