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Updated about 4 years ago,

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Advice from those adding 10+ SFR/MFH per year with a day job

Jared McCullough
Posted

I am on year (2) of my RE Journey with my brother. Last year certainly had its ups and downs but all in all I would say worked out. I ended up closing on what will be (10) Units. (1) Duplex, (6) Single Families, and (1) SFR that is being converted into a duplex. We were able to do light rehab and fill everything except (1) Unit of the duplex conversion and (1) SFR that was bought in December.

My main focus now is understanding how people with full time jobs scale the portfolio at a quicker pace than this. I certainly think we had the potential to maybe do another (5) but beyond that I am at a loss to understand how people are doing it.

Some background is that most of these houses are what I call light rehab (i.e. cosmetics, flooring, maybe a roof) and we do a mixture of self-labor along with finding supplemental workers where we can as professional contractors seem to be impractical somewhat from the economic perspective but more so lead time. You would almost have to be doing enough inventory to keep a contractors crew busy the whole year.

The paperwork alone for closing (10) properties then COFR these can be a decent time suck in of itself. Then managing the hiccups from what I call early turn on (i.e. we typically rush to get these up and running then work the bugs out after we fill the vacancy). I am just trying to identify people who are obviously more successful at doing this and understand for those that have a day job how they manage this additional workload on top but more so what methods/systems have they developed to streamline this process to allow them to scale quicker.

Say short term what would recommendations be for scaling from (10) properties/year to 20 to 30?