Unintended Investor

[Jim Klapmust]

It all started back in 2004, as a recent graduate working in the construction industry, I took to living in the basement of a SFH in Arlington Va where my older brothers lived as well as another roommate. I had graduated in 2003, moving each year that I was in college, and thought I settled on a long term rental. 2004 came, and the property owner, who was a mom and pop shop, decided they wanted to sell. Home ownership and real estate investment were not in my focus at the time, but my desire to not move again (for the 5th time in 5 years) led me to purchase the house with one of my brothers (who was also still residing there). We continued to live there for three more years, accepting partial rent from our roommates.

2007, wedding bells. Move out of the bachelor pad, and buy a house with my wife in Arlington. My brother does the same, and now we have turned our SFH into a full investment.

2011, baby arrived.  My company offered me a spot in Roanoke Va to manage a construction project, allowing my wife to quit her job and stay at home.  Move out of our 2nd Arlington home, turn it into a rental, buy a house in Roanoke.

2013, another baby, another move, this time to Johnson City TN.  Turn our Roanoke house into a rental, buy a house in Johnson City.

2015, quit my job (too stressful), decide I want to move to Charlottesville Va.  Turn our Johnson City house into a rental, buy a house in Charlottesville.

All the way, I have made improvements and treated these as my own homes when we lived there, but kept an eye for future rental.  I wouldn't say these are cash cows, but today I sit on approximately $400k in equity across all properties, and generate roughly $1100 in positive cash flow monthly (before maintenance).

I found out over the past 12 years that I actually enjoy being a landlord.  I used my construction management experience and handyman skills to improve the homes, and they are really attractive to renters.  I have had mostly positive experiences and I have been extremely hands on with the renters to ensure they have a positive experience.  However, now I am running short on funds, but I am considering investing in more property with my brothers.  All of these properties are traditionally financed, 30 yr term, with no outside investment (except the first house with my brother).

I'd buy again in Tennessee, but I think I need to improve my legal protection and lease.  I'd also be interested in small multi family investments.  Also, I am concerned about the VRLTA which was amended a couple years ago to reduce the qualifying term from 10 properties to 3.  I do not use a property management company primarily because I have been successful in managing myself because I am centrally located to all my properties, and my tenants all understand I am a phone call away.

I became interested in BiggerPockets when I started listening to the podcast, and thought I should start a profile to see what else there was to offer.

Thanks for including me, I look forward to connecting with you all.

Jim