All Forum Posts by: David Huynh

I actually had another 8 unit under verbal agreement but backed out because I do not know anything about student rentals. It scares me and it does not fit into my portfolio like the other properties do. It is a 39-60% COC deal that is almost a 2% deal. It would be my biggest deal and cash cow to date. Also, the coin-op/cleaners is at the height of my focus now.

For those who are discouraged, cannot "find" deals, or think that investors have picked it all up. Keep scrubbing and they'll surface.

@Edwin GachingaYes 7 of the 8 are positive cashflow according to my rental calculator which factors in capX, vacancies, property management, repairs. The one stand alone one makes $75/month but it is a pure appreciation play. It could cashflow if I added a bedroom in the basement.

I'm a fairly conservative investor: a minimum of 20% COC, 2% rule, with a good buy and/or multiple exit strategies.

I actually discovered BiggerPockets because I ran into issues purchasing my first two condos - I could not get the bank to finance the second condo because there was too many rentals within he complex. 

1) Condo (1/1) - purchased w/ 5% down as an owner occupied property (one of my best properties)

2) Condo (2/2) - got denied so I got creative and used the checks that credit cards sent you (25k) from three different cards, begged friends, and had about 15k in my bank. I purchased it for 55k and it was valued at 90k. 

**This is where it really sucked, I could not refinance myself out of the property quickly enough and had to get a part time bartending job (14 months) to avoid penalty and payments. 

3) Triplex - Owner financed w/ 10% down, cash cow (over 2% rule)

4) SFH (non cash flowing) - owner occupied w/ 5% down and house hacked that w/ 2 other roommates off the bat.

5) 4 plex - 70k cash out refi from my Condo (2/2) and used it as a downpayment on this 4 plex, another cash cow (over 2% rule). 

I've honestly been VERY FRUGAL with my money and have yet to take a salary. All of my funds (from work) and cash flow get invested into either my properties or into another property. I've always taken 6-12 months of cashflow from every property and put it back into it, making it as nice as possible. It's hard but it is definitely worth it. I know some other investors who struggle because they changed their lifestyle as soon as they buy 1, 2, 3, 4 properties. Finally, I can take a real vacation after 5 years (Cruise this summer!). 

I want this post to benefit those who are starting out in real estate and want to believe they can succeed.

Don’t take this as me bragging about my accomplishments (most people don’t even know that I own a real estate portfolio, outside of BP).

Real estate sucks. It really does suck when you first start out. My first 2-3 properties were the most stressful, sleepless nights, and almost sickening periods. After that, it gets a lot easier. I kept telling myself - it’s difficult to count to 29 but after 30, you just get it. I don’t remember who taught me that, but it kept me alive.

Real estate rocks, once you get it. After fumbling in the dark for the first couple of years everything is easier and it is smoother sailing. You’ll just want to keep signing on that line, over and over again.

For the past couple of years, it has been fun, exciting, depressing, hectic, and crazy. I finally get to say and announce to the world that I’ve achieved my goal – 9 properties and a business by age 26. My boss has always told me “Be careful what you wish for, you might just get it”

Here is my list:

• Condo (1/1)
• Condo (2/2)
• Triplex
• Single family (3/2)
• 4 plex
• Store front w/ two residential dwellings
• 8 unit apartment
• 4 plex
• …. Finally my own single-family residence (closing March 31st)
• Coin-op/dry cleaning business (no idea what I’m doing here)

Now it is time to 10X my goals, cause it does work! I still hold my full-time sales job, a steady relationship with my fiancé, and a newborn :). And yes, at times she wants to get rid of me if she hears about real estate.

There was definitely a point in time where I did not believe that this was possible, especially in my first couple of years. I was scared that I would flop and fail (still do today) but I continue to grind on it. I hope all of us, get to succeed, create wealth, be financially free, or whatever our goal is, makes it there. The BiggerPockets podcasts and community definitely helped me. 

If it's a slam dunk property, then season the funds. If you are over leveraging then you are screwed. Some portfolio lenders don't care so you should shop around. My "investors" are friends and family and my lender does not mind, knowing that I have cash in the bank with them already and the properties fit my investing criteria - 2% rule. Be upfront and honest, let them know the repayment terms and rates.

Lol. What's the secret?

Sterling White I would hire out the damages and have a handy man on call. And in an ideal world, I'd just answer phone calls, questions, and address issues. Same with lawn and snow care

Curtis Bidwell How active are we talking? I've done some research on the management companies and none of them are all that great for this specific area. I figure if I have bi weekly visits initially it'll help set a tone, then come by monthly. I've always been more of a passive investor with A and B class properties but this one seems like an amazing gem.

Hello BP,

I do not have a student rental in my B&H portfolio and have located a gem property near a campus (walking distance). This property is 1 hour away from my residence and I am debating how easy it is or difficult to manage. 

How often do you check out your property?

Once the students are situated (moved in, set up electric, etc...) can you be more off-site?

Do you receive a lot of phone calls/inquiries with young adults transitioning?

What helped you successfully manage from a distance? 

-i.e  - upfront when signing on the tenant that if it is a non-emergency, they can e-mail instead of call you. 

What are things I need to put in place to make this baby work?

David H. 

I think you should tell me about the deal:) 

And then we can arrange something that makes us both happy. 

If you can move them all, keep a percentage. That's what I personally would do. Looking for multiple investors for a package could be a headache for you and him. It's better to find someone who is looking for the package, because you'll probably want to work with them in the future - move them up to your "A" buyers list.

I didn't realize you were from Minneapolis! Hello hello :-) See if you can get the budget for rehab under 18k, according to the 70% you should only spend 20.5k, and since it is your first rental, practice and run these numbers as tight as possible, don't over rehab!