The dumpster diver with a million dollar portfolio

[Jim D.]

Hi all, I've recently transitioned from lurker to active participant in the forums here, so thought I would formally say hi.

My first purchase was 5 years ago, house hacking with my buddies as roommates. Knowing very little, I bought a cash flow neutral 4-bedroom house in an "A" area. Upon moving in, my roommates were surprised when I didn't claim the master bedroom for myself--I couldn't bear to take that room knowing that it would bring in the most rent. Actually, I didn't even take the smallest bedroom in the basement. I rented all four bedrooms to friends, and sectioned off 1/3 of the large downstairs living room with a line of 6 IKEA bookshelves. That was my bedroom. Taking house hacking to the next level!

Bookshelf bedroom notwithstanding, that year I managed to convince my girlfriend to marry me. We bought a new property each year as a primary residence and kept house hopping (these ones cash flow much better). Our most recent one had a nice shed, and she mentioned that were I still single, there would be a decent chance I would live in the shed in order to maximize the rent income from the house. By thus inconveniencing ourselves, we were able to pay for the majority of her medical school with cash, and come out with well over a $1M portfolio (currently at 75% LTV). We are aiming to finish her residency in 2020 with no student debt and a $3M portfolio, and then the real fun will begin.

Aside from ungodly food expenditures, we are some of the most frugal people you'll ever meet. My wife looks like a million bucks shopping at thrift stores, we share a 2007 Prius, and yes, we do actually enjoy dumpster diving as a hobby. Last week we went for a couple hours (date night?), and while sorting through the toy dumpster behind Toys R Us, I contemplated that at $350k I likely hold the distinction of being the highest net worth individual to ever stand in that dumpster. (In case you're curious, in two hours we scored a new volleyball, several phone cases, a two-person inner-tube, cheap jewelry, two boogie boards, and a very nice leather couch missing one leg. For verification, I have attached a photo of the 3-legged couch.) 

Given that frugality has been the key to building my portfolio, my BP celebrity crush (come on, we all have one) would have to be Scott Trench. After listening to podcast #223, I had to wonder if we aren't actually twins separated at birth. 

Anyway, many thanks to all who contribute here, and I look forward to a long and enjoyable association with you all.