Owner Occupied Duplex Pays Off

[Justin Woodworth]

Hey BP'ers! 

This month marks 3 years of owner occupying a duplex and investing in real estate. I was reminiscing and felt like sharing a progress report! 

At the time I was averaging 68 hours a week working as a firefighter/EMT barely making ends meet. My current business partner one day handed me Rich Dad Poor Dad and I felt the world of opportunity open up. Fast forward a whole year and I managed to save $17,000. I took that $17,000 and purchased a duplex (4 bed, 2 bath each side) for $305,000. My payment was $1980 a month and my tenants were paying $1500 a month. Before purchasing the property my wife and I were renting out a 1 bedroom apartment in Middleton for $1050 a month not including utilities. After we left that apartment and moved into our property we cut our monthly rent expense down to $480 plus utilities. 

"3 years later" - SpongeBob's Narrator

I have 14 units with my business partner and my wife and I are moving out of our first duplex hopefully in 2022 (ideally into another duplex). After doing the math and updating rents both sides of my duplex should rent out for 1675+ a month (conservative) and the property will cash flow over $1,000 a month. 

My partner and I purchased 8 units this year up in Sun Prairie. The purchase price was 875k and it appraised at 950k. After purchase and raising the rents the COC return for the property is 21.9%. I couldn't believe we pulled this deal off as it was the first commercial multi family deal we had ever accomplished.

If my wife and I had not owner occupied our duplex, I do not think that we would have this level of success. My parents never dreamed of their son owning over a million in real estate (debt so far, equity in 30 years LOL) and it still shocks most of my extended family when they ask me what I am up to. 

My goal in 2022 is to not only improve my rental portfolio, but get 10 Bigger Pocket followers into their own multi family property. It's difficult to put my gratitude into words. Had it not been for Bigger Pockets I would not be where I am today. With over 200 podcasts listened to and 40 real estate investing books read, there is no better place to start than here. If you are looking to take the first step, I would love to connect and help you realize your goals.

Here is to a successful 2022!

Cheers,

Justin