All Forum Posts by: Twannisha Jackson

Hello BP Community!

I have recently located an ideal MFP in the Chicago suburbs (Bellwood) that I would like to invest in. The property overall is in nice shape with some work needing to be done on replacing carpets, some painting, and or replacing wallpaper (at least from what I could tell from the MLS photos).

The property is listed at 250K, and with some TLC on the units I could charge a reasonable amount for rent of the other unit I will be leasing to someone else.  

Even though this is not a full analysis of my research on this property, would this be a good investment regarding the condition of the property, the location, and the quality of tenants I may be able to attract? 

Hi guys,

I love to see all of the success stories but I have noticed I just don't have the income to keep investing past 1 property. 

Here are two real world strategies that I used with my clients:

Success story A

Step 1: Bought a condo for $175,000 in 2013 in an up and coming area that cost less per month than market rent. Lived it in then rented it out. Cash flow was around $350 per month.

Step 2: Sold the condo using a 1031 exchange to roll over the taxes.

Step 3: Bought a primary home in a LCOL city for $200,000 and rehabbed it. Now worth $350,000.

Step 4: Bought a four multifamily in a LCOL for $500,000. No rehab needed. Now worth $650,000

Step 5: Brought the four family rents up to market rate which is $5200 per month.

Time to complete: 10 years.

Cash flow went from $350 per month to $2,000 per month.

Properties are now worth around $1,000,000.

Success story B

Step 1: Bought a condo in 2014 in a HCOL city for $200,000 and rented it to a roommate (house hacking). 

Step 2: Moved out, rented the 1st condo for $1800 per month.

Step 3: Bought a new primary home in a LCOL for $175,000 which costs less per month than rent.

Step 5: Moved out of the 2nd property and rented it for $1850.

Step 6: Rented an apartment with somebody else. Saved $1,000 per month in monthly housing costs.

Step 5: Saved up the cash flow money and bonus money from their work.

Step 6: Bought another condo $250,000 in a HCOL city that cash flows with 5.5% rate and 25% down

Step 7: Raised rents on all 3 properties to market rate equal to $5,800.

Time to complete: 9 years.

Cash flow went from $300 to $1500 per month.

Properties valued at approximately $925,000.

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Each client started with a 5% down payment, was in the early 30s, and didn't make a six figure income. No family help either. 

It's possible to build up a portfolio with time. Time is the key because over-time rents and home prices rise. 

Thanks for sharing the intention! I wish I had house hacked when I was younger! Where are you looking to buy? In Cincinnati Ohio?