51 Units at Age 23 (& Counting)!

51 Units at Age 23 (& Counting)!

Investor · Sevierville, TN · Member since 2015 · 121 posts · 674 votes

It's been nearly 2 years since my first post "$1,300,000 Deal at Age 21 & I'm Retired!", I wanted to share an update. 

Last year, 13 months after I bought my first 20 unit apartment, I had increased the gross monthly income from $12.8K to $17.2K, that allowed me to refinance out $163K ($33K more than I initially invested).
I did this through a combination of cutting expenses, raising rents to market, implementing late fees, pet/move in fees, and adding a 21st unit. 

After the refinance, I'm still cashflowing $3K+ per month, and I have all my money out of the deal.

From hundreds of hours of podcasts & reading, I decided to shift my focus to mobile home parks (in addition to apartments). I spent over a year cold calling, talking with brokers, meeting other investors, and even door knocking at owners homes directly to find MHP deals.

Finally in January of this year, another investor I knew sent me a lead on a portfolio of 3 parks. After many meetings, we settled on a price of $750K for 2 of the parks, a 30 unit and a 13 unit + a SFH.

Both parks are on city water/sewer direct billed, excellent location with strong demand, and a lot of upside in terms of low rents, addressing deferred maintenance, etc. The plan is to stabilize & refi out within 12-18 months, then snowball the capital into future deals. Essentially, the BRRRR method applied to commercial multifamily properties.

On these 2 deals, I had the capital to take them down myself, but I decided to partner with another local investor, we formalized a partnership agreement where we split all expenses/profits/work equally.

We finally closed on the 30 unit park as of May 3rd, and the 13 unit + SFH park is closing the end of this month. Including my apartments (which I own individually), that puts my total rental unit count at 51, and on June 1st it will be 65.

The main takeaways I'd like to share are:
1. Stay focused! If you haven't done a deal yet, or it's been a while since your last one, keep searching. Every day you move closer to reaching your goal; don't stop short of finding your next great deal.
2. You're better off buying no deal than a bad deal. I analyzed, went under contract, and/or visited at least 12 other MHP deals before proceeding on these. In this market particularly, you have to be sure your numbers and assumptions are accurate.
3. If you want to be successful in a particular niche, copy others who are successful in it. Don't skimp on your education, it's an investment in yourself. I've attended multiple live events & went through training courses from both apartment & mobile home park operators. Success leaves clues; you don't have to reinvent the wheel, copy what works.

Don't wait for something to happen, go out and make it happen. 👍🏻

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Real Estate Investor · Lake Charles, LA · Member since 2009 · 271 posts · 52 votes
7y

Congratulations !! All of these deals are in your market ? Also what podcasts do u listen to regularly?

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  • Phoenix · Member since 2019 · 22 posts · 35 votes
    7y

    Awesome!

  • Newport News, VA · Member since 2018 · 9 posts · 4 votes
    7y

    Congrats! Most lenders require 20 to 30 percent down on deals like that where did you get the capital for down payment. Did you use private lenders for capital?

  • Lender · Nat'l Commercial Mtg Lender - Round Rock, TX · Member since 2014 · 916 posts · 235 votes
    7y

    @Abraham Anderson   Thank you for sharing.  I will share your post with my sons who happen to be in high school.  You are an inspiration.   Once again, thank you.

  • Rental Property Investor · Member since 2019 · 28 posts · 2 votes
    7y

    @Abraham Anderson Congrats! You have a great success! 

  • Rental Property Investor · Houston, TX · Member since 2019 · 27 posts · 6 votes
    7y

    Congratulations @Abraham Anderson. Yours is very inspiring story indeed.. Thank you for sharing.

  • San Francisco, Bay Area · Member since 2019 · 37 posts · 23 votes
    7y

    Congrats! Awesome achievement!

  • Rental Property Investor · South Florida and Central Florida · Member since 2017 · 50 posts · 40 votes
    7y

    @Abraham Anderson I'm very impressed. I'm in the insurance industry as well and I preach to the young guys in my office to save and invest their commissions instead of buying $200+ shoes for their closets or blowing it on nonsense. I look forward to hearing a podcast from you. I know it's coming. My son goes to college next year and hearing your story would be an awesome motivation for him. Stay blessed and keep up the great work. I will be following your journey.

  • Member since 2019 · 38 posts · 11 votes
    7y

    @Abraham Anderson Did you have any trouble jumping straight into managing several doors at once when you started? What helped you ease the pressure of owning that many units at one time? 

  • San Diego, CA · Member since 2018 · 210 posts · 67 votes
    7y

    Hello Abraham,

    Congrats on your endeavors, and thank you for the tips. 

    Sincerely,

  • Rental Property Investor · Savage, MN · Member since 2016 · 202 posts · 61 votes
    7y

    Awesome story, very inspiring! 

  • Phoenix, AZ · Member since 2018 · 2 posts · 0 votes
    7y
    @abraham Anderson Congrats ! Making big moves.
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