Buy and Hold Investor from San Diego

[Brian Wolfe]

Hi everyone! 

I am new to the Biggerpockets community, though have listened to Josh's and Brandon's podcasts for over a year now, and been more of a passive reader of the wealth of information on BP.  My wife and I currently own single family rentals in Chandler, AZ and San Antonio, TX, and a 4-plex in San Diego.  Our goal is to achieve financial freedom as quickly and as safely as we can.  We have 2 young kids (ages 6 and 3), and another goal is to teach our kids the real estate business, to give them an opportunity to see the power of passive income and the opportunities it can create in their lives.  Looking forward to getting to know many of you! Brian W

[Michael Swan]

Hi Brian,

My path was start with single family condos in San Diego that I purchased in 2011 and 2012 for less than 1/2 of what they were selling for during the peak. Dramatic appreciation happened from 2013 to 2015 and we started 1031 exchanging those condos for 8, 10, 12, and a 15 unit complex in Northeast Ohio. I basically traded in 4 condos cash flowing at about $6,000.00 each per year on 30 year loans for $15-$20,000 cash flow for each Apartment complex. The power of the 1031 exchange is amazing!!! I read Multifamily Millions by David Lindahl, listened religiously to Lifestyles Unlimited Inc. (LUI) podcasts on TUNEIN RADIO for 2 years and attended LUI’s 2 day seminar in Houston, Texas. On Day 2 of that seminar, I knew that eventually I will have Three or four 300-400 unit Apartment complexes. Right now our Tax deferred cash flow sits at $120,000 per year and in 10 years time, I will be sitting at $1,000,000.00 tax deferred cash flow coming in yearly.

I still have 4 pricey rental condos here in San Diego that I expect to sell and 1031 exchange this summer when the tenants’ leases expire. Plus, I am currently fully executing my first purchase agreement for an Equity Partnership with friends. We are purchasing a 21 unit and my total doors will now be up to 78 front doors, with the 8 single family we also own in the same state as our apartment complexes. In the equity partnership, I will be putting in 10% of the down payment and receive 20% of the cash flow and 20% of the equity for my connections, running the entire thing as the managing partner. The investors will be contributing 90% of the down payment. 

If a lowly paid teacher earning a combined family income, before taxes of $80,000 can do this. Anyone can!!

Brian feel free to reach out to me if you need some advice etc...

Swanny