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!
@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.
Great job Jordan!!
I would be interested in the meet ups @Tim Swierczek.thanks
Rental Property Investor · NC, IL · Member since 2018 · 86 posts · 47 votes
8y
@Jordan Moorhead way to go! Be sure to keep us updated on the reno, I think many people would love to see how it turns out. Best of luck to you as you continue on your way.
Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
8y
@Paul Schu all of the interior common areas have already been painted. They'll be starting on both of the porches this week.
Tomorrow we have rehab on the easy vacant unit starting. It shouldn't take more than a few days and then the guys will tackle the water damaged unit next..
Rent collection was a real pain the first month as I closed three days before the beginning of the month. Lots of tenants paid the old property manager. My property management company has been diligent about getting all of the mess straightened out so I think we're getting out of the weeds.
Managing an asset in Louisville from Minneapolis isn't easy but having a good team makes running apartments much easier. I was forced to use a property management company by US Bank in this one but honestly it was a blessing in disguise.
I noticed @Corey Robert Leet asking about local meetups and wanted to let everyone know that there is a meetup in South Minneapolis every month. There is no topic it is just open networking. There will be newbies and experienced investors alike. It has always been a great mix and very welcoming environment. There have been some awesome connections formed at this meetup and even some partnerships on deals. Thought I would tag other Minnesota folks to get the word out there. Look forward to meeting those that can come! Link to event: https://www.biggerpockets.com/forums/521/topics/594263-south-minneapolis-real-estate-investing-meetup
Professional Engineer · Minneapolis, MN · Member since 2017 · 117 posts · 75 votes
8y
@Kurt Pauley, Thanks for the mention. I've been meaning to try to make it to one of your meetups. My work schedule often doesn't allow me to get there at any decent time. I will make it to one eventually.