All Forum Posts by: Cody Clinton

I mean scaling to hundreds of units is the goal but I mean "fast" as within 5-7 years. I intend to hire and out source down the road but I still want to be the one who develops and  creates the systems used within my company. Of course the given is that landscape will change as I grow and develop hopefully better and more efficient systems and skill sets. I appreciate the input!

Hello BP Family!

So I'm closing on my first rental and plan on aggressively scaling in the next few years and beyond and am looking for a little advice from some experienced investors here at BP. I will be turning these future rentals/investments into a business and am looking to treat it as such from day 1. I have already talked to CPAs/lawyers and made a plan with how I will be structuring the investments as far as LLCs and Corporations and LLCs owned by corporations and all that legal tax mumbo jumbo (which is extremely important asset protection and tax mumbo jumo but not the root of my question).

My question has to do with the day to day managing of incoming rental income. I've heard strategies like creating different personal checking accounts for each address, using quickbooks to manage income for P and L and balance sheet purposes, or even just a base spread sheet for the same. The intention is to have hundreds of units over the course of the next few decades (god willing) and then even having this business span generations if possible. Just wanted to see if there is any income software I should be utilizing and things of that nature. The goal is to systemize and grow and eventually hire people to take over those systems as I move out of the business and like I said that is the mindset I want to use from day 1. I don't want to do what's easy now and be scrambling as I grow to develop the processes I need.

Any and all advice is appreciated! Thank you all for your consideration.

@Codie Fisher Welcome to BP! I'm from South Florida and looking in OKC as well! 

P.S. Great name!

@Nandy B. Been trying to break into the Oklahoma market for about a month now. MF is verrrrry competitive it seems like. I've made offers at list hours after going on the market and still been too slow. My current motto is "On to the next." Best of luck with your investments!

@Anthony Sorrentino Why not use that money to purchase a cash flowing home in another market? Should be able to find $80K-$100K homes that cash flow SOMEWHERE. This country is a big place and there's always homes to buy. What's that old saying? I've never met somebody who only does 1 deal. It's either zero, or 100. Good luck brother!

@Michael Pilolla Definitely would get all your ducks in a row. They always say make your offer as strong as possible... Having the lender ready to roll would definitely help in that regard.

@Mike Szabo I had the same dilemma and funny enough it was in South Florida. Mine was a little different as I didn't relocate but the plan was always to buy and hold, pay down the debt, and eventually own it as a free and clear rental generating cash flow. Then I head the term "ROE" or better known as Return On Equity. 

Quick easy (rough) math using the numbers you provided. Your rental is cash flowing about $200 a month, but your sitting on $185,000 in equity. Lets say you took that $185,000 in equity and bought 6 different $100,000 houses using 25% down (and leaving $35,000 for misc. expenses). Now lets say you cash flow $100 a month on each separate property. You've essentially TRIPLED your monthly cash flow. Keep in mind all this is with CONSERVATIVE numbers. That doesn't even factor in that your eventual net worth went from $285,000 (current value of your house with zero mortgage) to $600,000 (current value of all 6 rentals paid off). Those numbers also don't reflect appreciation, debt service, or potentially reinvesting the cash flow from your now expanded portfolio.

Needless to say when I was introduced to this concept, I took my equity and have started expanding my portfolio. Best of luck to you brother!

@Simon Obas it all depends on the details of the deal, but if you haven't already I would go up to the search bar at the top and type in "BRRRR strategy" and get to reading! Best of luck and congrats on your first triplex!

@Alex Harshman Looking for cash flowing MF primarily but if I can't find anything in my range for MF then cash flowing SFH will do just fine. How about you?

@Alex Harshman I'm also looking to invest in the OKC area. Already spoken to some people out that way and it seems like a great area to get into. Excited to get started there!