I Made Seven Figures on My First Portfolio Deal Part Time

[Tony S.]

Hi Guys, 

I'll keep it brief, but wanted to document my success below while the numbers are still fresh in my mind. I'm actively looking for a new off-market multi-family deal and also looking for private lenders for my next multi-family venture, so please message me for opportunities if interested.  

I made 7-figure profit off some deep value-add properties on the side (while working a full time job) with a portfolio deal I purchased in 2019.  Below are the details.

Details:

Before this portfolio deal, I only owned a couple rentals.  This portfolio of properties were off-market 19 total units in a D neighborhood.  During my walk-through, there was an ongoing murder investigation on one of the units with police presence.   Some subcontractors refused to give me a quote after visiting the properties.  Half of the properties were abandoned or vacant for several years.  There were zoning violations and weird subdivisions.  It was a scary deal from an economic and safety standpoint. But I was hungry and with the support of my wife and a good team in place, I was determined to stabilize the street, clear the zoning violations, put qualified tenants in, and work with the police department to clear out any criminal activity.  Two years later, the street is clean, safe and I've realized $691,640 in sales profits and $617,000 in equity I retained with the buildings I decided to keep. Below are the numbers.

Numbers:

1.

Property Type: SFH
Purchase Price: $24,000

Rehab Costs: $33,300

Sale Price: $155,000

Seller Credit: $0

Realtor Fees: $7,500

Net Profit: $90,200

2.

Property Type: Duplex
Purchase Price: $24,000

Rehab Costs: $$51,300

Sale Price: $175,000

Seller Credit: $2,000

Realtor Fees: $8,750

Net Profit: $88,950

3.

Property Type: Duplex
Purchase Price: $24,000

Rehab Costs: $41,000

Sale Price: $175,000

Seller Credit: $2,000

Realtor Fees: $8,750

Net Profit: $99,250

4.

Property Type: SFH
Purchase Price: $27,500

Rehab Costs: $33,000

Sale Price: $155,000

Seller Credit: $2,000

Realtor Fees: $7,750

Net Profit: $84,750

5.

Property Type: Duplex
Purchase Price: $24,000

Rehab Costs: $41,000

Sale Price: $179,200

Seller Credit: $0

Realtor Fees: $8,960

Net Profit: $105,240

6.

Property Type: Duplex
Purchase Price: $24,000

Rehab Costs: $43,000

Sale Price: $200,000

Seller Credit: $17,500

Realtor Fees: $10,000

Net Profit: $105,500

7.

Property Type: Duplex
Purchase Price: $24,000

Rehab Costs: $38,000

Sale Price: $190,000

Seller Credit: $750

Realtor Fees: $9,500

Net Profit: $117,750

I decided to keep the remaining 7 doors from this portfolio as cash-flowing rentals.  The 7 doors are collectively valued at $720,000 and only have $103,000 worth of debt on them (which means I have $617,000 worth of equity in the properties).

TOTAL SALES NET PROFIT: $691,640

TOTAL EQUITY IN REMAINING PROPERTIES: $617,000

TOTAL PROFITS + EQUITY: 1,308,640

Happy to take any questions.