All Forum Posts by: Austin Fruechting

Originally posted by @Aaron L.:

@Austin Fruechting congrats man! Couple questions (I apologize if you already answered these in the above comments). I think you mentioned you had a goal of 85k/yr in order to be financially free. I figured someone would only need 40 or 50 units to achieve that goal, especially if the units have great cashflow as you shared in a previous comment. I'm curious...did it actually take 107 units to achieve your goal or did you hit your goal much sooner? Is there a certain dollar amount per unit that you aim for, or does it depend on the deal? Last question: are your properties in decent areas, B, C+, etc? I'm also from KC and know the area pretty well. Thanks!

 Hey Aaron.  Thanks for the congrats.  I brought along a couple cash investors on some of the bigger deals that I did, so my equity ownership equates to 70 units of the 107. But my cash investors also get a preferred return, so based on cash flow it may be closer to as if i had 50-60.  So our numbers aren't that far off, especially considering I do have some lower dollar rental units.  All together if you looked dollars for purchase to dollars of cash flow, and adjusted for the preferred return that I give our numbers are probably very close.  I would say the vast majority of our properties are in that C+ to B range. I have a few outliers that are A's, and some that are probably C, maybe even down to C- depending on who's judging. 

Exterior is fixed up and painted. Appliances, backsplash, and touch-ups/clean up is all that's left. 

8 showings scheduled for next week. 

 That's all you need to absolutely not do it!  

Because I reached financial freedom in 7 years with only $150,000 TOTAL of my own money left in deals.  (49 properties, 107 rental units)

BRRRR

I am strongly considering it at my own home when my roof needs replaced in the next few years.  With a 100+ year old home paying zero in utilities will pay back the additional costs in around 5 years and then I'll be saving substantially. 

It will be interesting to assess the possibility of return on a rental. 

Not comparing apples to apples. Of course on average a 50-year old engineer that buys a home is probably going to spend more per month than a college student renting. They will be in very different types of places. I know if my renters bought the houses they are renting from me they would spend less... otherwise I wouldn't be renting them!

What are you making in the 401k and what interest are you paying on your investment loans?

I would think dumping it into 401k and letting it grow, especially with the match, would put you further ahead than paying off a 5% loan. 

Excellent work!

My bank does their own closings, so I just have to have money in an account there prior to closing.  

The few I have done in cash I just took a cashiers check with me to closing at the title company.  

I will definitely always be calling to verify if I ever have to wire!!!  

30 instances with the same company is crazy. You think they would have figured something out to safeguard against that if they know it's happening that often.