Baby's first deal - my long journey to the first sfr

[Raj Vora]

Hi BP Family, 

Just wanted to put some good vibes out on BP... I had been trying to get into real estate investing for about 7 years... always working in real estate tech companies to try and learn as a vendor. Had been sitting on the sidelines so long but finally after discovering BP I learned the lingo, started listening religiously and boom, within a year I have my first deal. It's not the 100 unit mf of my dreams but it's the first rung on the ladder and boy it feels great! 

The deal: straightforward Florida SFR rental for cash flow: $135,000 with 20% down - $1250 expected rent. It's been so useful going through the process.

My plan is to wait a year to get the schedule E form, then FHA house hack a 3/4 unit with 3.5% down. I'm going to get a 203k loan to force some appreciation and command higher rents and then should be at 4 or 5 units. Then while, not paying any living expenses, I will funnel my income streams and a hard money loan into my first BRRRR. I want to get 10 BRRRRs under my belt before eventually raising friends and family money to start knocking these out.

The journey to 100 units... shooting for 5 years. 

Wish me luck! And please, any feedback or devil's advocate welcome.  

[Raj Vora]

 Hi Chace, 

Thanks so much for the kind words. Indeed I live in NY currently (salary) and dipped my toe into FL purely based on data - the price to rent ratio beats anything in the Northeast as you know. I am currently working solo and hope to take on partners down the line. As Brandon and co always say on the podcast of mentorship, you need to adhere to the principles of the value triangle: money, experience or sweat equity. I currently have money and time for sweat equity. I'm hoping that along my journey I meet people that want to partner and lend their experience and credibility for larger deals.

Incidentally, as I have gone along the process, I have decided to relocate to FL to really amp things up and show future investors that I am serious about this play. I am in the process of securing work from home employment and intend to house hack my first year in Jax. In maintaining my NY income level but significantly reducing my living expenses I hope to be able to buy a BRRRR all cash, Y1. Then 5 BRRRRs in 2 years yielding $1000/ month cash flow. I have 4 neighborhoods I specifically want to target for this. By the end of this period, I should have enough experience, credibility and 'skin in the game' to syndicate my first deal. I'm thinking 10 or so units with a friends and family round. Once that's done, I have high net worth contacts in Dubai and London (where I'm from) that are eager to get in on the action.

In any case, I know that the best laid plans go awry so I am expecting a million pivots and amendments to the above strategy... but that's what I'm shooting for as of now. I also find the Airbnb model fascinating, though very high touch and hope to find a good market to experiment with that in - currently Cape Coral, Daytona Beach, Orlando or Miami seem like good options but that's down the line. 

Oh and I just spoke to a family friend who syndicates 50+ unit buildings in Orlando and he's mighty bullish on self storage and having done my research I tend to agree, so very keen to explore this area too. 

Biggest lesson so far has been: balancing patience blended with impatience. I know this is not an overnight thing but I also need a little impatience to push things along!

I welcome any insights or advice here... love the community, thank you!