We bought 26 properties in 6 months

[Johnathan Alesso]

Hi fellow investors,

I want to thank Josh and Brandon for creating this forum that has offered so much priceless information and experience.  Thanks to all of the members, as well, for contributing to this exceptional website.

I began investing ten years ago with barely any capital. I saved enough through my job to finance a few rental properties that offered a decent amount of cash flow, but I soon realized that my incremental approach would not lead my financial freedom in the desired time frame. What was most frustrating was the unexpected CAPEX that bogged each of my lower-end rental properties. I thought about quitting and may have done so if not for this forum.

My partner and I were fortunate to come upon two separate 13-property portfolio packages.  I believe this good fortune was the result of a determined spirit, strong relationships, and an openness to ideas.  We closed on a total of 26 properties, five of which are duplexes, within the past six months, and hope to reach financial freedom within the next five years.  Our consistent goal is sufficient cash flow to meet our monthly expenses.  I believe we can reach this goal if we mitigate maintenance and repairs on our properties as well as reducing our personal expenses. 

I am happy to report that I am having fun along the way.  I could not invest if I did not enjoy both the ups and down. 

Once again, thank you all for your wisdom and experience.

[Johnathan Alesso]

Hi all!  Thanks for the kudos and enthusiasm.  I couldn't have done it without all the wisdom on from all of you on this site.

We used personal savings for the down payment and closing costs.  The savings were a combination of savings from our day jobs, and largely the profit from the sale of condo on the east coast.  We were skeptical that a bank would finance our deal considering that we had only recently purchased a 13-package bundle.  The major banks were not interested, so we found a local bank in Pennsylvania that gladly accepted our invitation.  What was important to ask the local bankers and investors for a recommendation.  This local bank was extremely agreeable, flexible and understanding our situation. 

The bank offer a 20 year amortization at a 5% rate for the commercial loan.  We can prepay or pay off the loan at any time.

Years ago I would have been terrified to assume so many properties, but I have more confidence nowadays that the rental income will cover unexpected expenses and vacancies. There are times when I sometimes worry about a major CAPEX, but we are well capitalized. Plus, I would be more terrified if I didn't have some realistic escape plan from the daily rat race! Therein lies the true horror.

We use a local property manager who has handled the section-8 transfers and local ordinances and taxes.  We basically try to mitigate our personal stress as much as possible while overseeing the properties with full diligence.

In a nutshell, I would say perseverance paid off.  Keep searching for a smaller, community bank that is more open to unconventional deals.  Find a lower-cost insurance company that will respond quickly to your inquiries and updates.  Most of all, search for a trusted property manager. 

I hesitate to sound too cheery because we haven't seen how it will all work out.  Nonetheless, we are astonished at the opportunities that opened for us and glad to have seized them.  As Brandon often mentions in the podcasts, fear is the biggest limiting factor.

Do you all have any recommendations for the best approach to take after purchasing a bundle such as this?  Have you focused on rebuilding capital, improving the properties, or investing further?

Thanks, all!