All Forum Posts by: Justin Kling

Great results!

When my son was 10 I talked to him about a flip I was investing in with a partner. I showed him pictures of the property, the purchase price, cost of rehab, and the selling price based on comps. I told him if he also wanted to invest in the flip he could, but 3 things could happen to his money: he could lose his money, he could get his money back with no profit, or he could make a profit. I told him that I believed we would make money based on the numbers so that's why I decided to invest. He decided to invest too & when we sold the flip he made a nice profit. He was a happy boy!  We will buy our second flip tomorrow & my son will invest more of his money in this one. I set up audible on his phone so he can listen to the books I have purchased. I just need to add Rich Dad, Poor Dad for him to listen to next. 

I live up by Gifford School in Mount Pleasant. I invest out of state for buy & hold but recently flipped a duplex in Milwaukee with a partner. I'm not familiar with the rental market in the area but it seems that houses in my subdivision are selling well now that Gifford is being expanded  to also be a middle school starting this fall. 

I'm always up for meeting & talking real estate. Happy investing!

Welcome to the land of cheese, brats, & the Packers!  I also live in Mount Pleasant. I recently did a flip in Milwaukee with a partner. If you'd like to say hi & chat sometime let me know. Happy investing!

Brandon Turner wrote an article that answers your exact Q in an 8 year investing plan.  It's called How to Make a Million Dollars from Real Estate: A Step By Step Path.

My goal is to get to the 75 unit apt complex in a few years following his plan (with a few changes from years 1-4).  Here's the link:

https://www.biggerpockets.com/renewsblog/2012/12/12/make-a-million-dollars/

I purchased a new construction duplex in Indy through Jason Hartman's company.  It is great from a numbers standpoint, 2100/mo in rent for a 174K property.  The builder/sales rep in Indy were terrible to deal with however (wouldn't return emails or calls, refused to get back to me about a couple of repairs).  I had to find my own property mgmt co also as they quit recommending the one they were using.  Overall the experience was ok, I love the property and being able to email any Qs to Jason's company and I'd love to have more of those duplexes.  The builder/sales rep mess led me to try another company that builds new construction homes in Dallas, Hassle-Free Cashflow Investing with David Campbell.  I picked up a couple of new construction homes that hit the 1% rule and his company already had a property mgmt co ready with tenants ready once I closed.  It was a great experience.  I'm busy working close to 50 hours a week so I decided to go the turn key route and I'm glad I did.

One option: I have a new construction duplex that cashflows 800/mo.  Having 5 of them (5X185K=925K spent, no leverage) would cashflow 1500/mo each.  That would bring me in 7500/mo along with my current 1000/mo (current duplex & other propery) would get me 8500/mo in cashflow.  I'm under 40 & don't plan on retiring soon so I'd keep building up the cash at 102,000 a year and keep adding duplexes/tri/quads to my portfolio using that cashflow.  Eventually I'd have 20-30K/mo in cashflow from all the properties and call it good.  

Another option: figure out how much I could make if I leveraged the money by buying an apartment complex.  I'm not as familiar with these so I don't have any numbers to compare, but if I have a million bucks in my bank acct I'd find out in no time!

I use RPM for my duplex in an Indy suburb.  I closed on my duplex in Dec unfortunately, so it sat empty for a few months (it was a cold winter).  They got a tenant in for me in Feb, then the other one in March.  They charge 10% plus $20 per unit if you want their eviction protection.  They also performed an inspection recently and charged $50 per unit and do gutter cleanings twice a year at $96 per unit.  I wasn't aware of the gutter cleanings or inspection charges when I signed up with them so that caught me off guard.  But so far so good.  I had listened to a Jason Hartman podcast where he interviewed an Indianapolis investor & author, Barb Getty, and contacted her to see who she would recommend since I'm not from the area.  She recommended RPM so I went with her recommendation.

I bought a new construction duplex in Indy and it's cash flowing 900 a month for me. I want 10 of them!

Another good book is Investing in Duplexes, Triplexes, and Quads by Larry Loftis. It's a little outdated as his examples show buying property with 10% down, but it's a great book showing how the numbers can get really big, really fast. It opened my eyes to what is possible with real estate investing.

Here's the amazon link:

http://www.amazon.com/Investing-Duplexes-Triplexes-Quads-Fastest/dp/1419537253/ref=sr_1_1?ie=UTF8&qid=1398965385&sr=8-1&keywords=investing+is+duplexes%2C+triplexes%2C+and+quads+larry+loftis