Zero to 5 Units in 2021 - (2 SFR, 1 - Triplex & Syndications)

Real Estate Deal Analysis & Advice
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Zero to 5 Units in 2021 - (2 SFR, 1 - Triplex & Syndications)

Suresh Kannan
Investor · El Dorado Hills, CA · Member since 2016 · 75 posts · 24 votes

It took a few years to make our first real estate investment. As many others, Me and wife are W2 Employees, I work for a tech company and pursuing the path to retire from our W2s in 2025. I have been a BP Podcast listener since 2019, but didn't get the courage to pull the trigger until early 2021, before that I was reviewing Single family properties in Sacramento, CA, but none of it fit in the criteria for cashflow, and then in December 2020, came in contact with an opportunity to invest in a syndication deal. Just trusted the person and made the plunge and started learning about syndications, during this time, I was also analyzing properties out of state(Robert Green's book - Long Distance Real Estate investing is a very valuable resource) mainly Texas(North Dallas, San Antonio, Tx Markets). Reason I chose that was based my reading and listening to folks in BP, Neal Bawa's videos on top markets etc., narrowed down my search to these locations. Then found agents in these locations through some friends and started talking to them explaining my criteria and areas I am interested in. Started getting properties from this 1 agent in particular and he was pretty good, so I would analyze it and we will make offers and earlier this year the North Dallas Market was pretty competitive and we had to make offers above the Asking Price but still cash flowed within my criteria.

First Property in 1/31/2021 - Fort Worth, Texas .Yr Built - 2013. Self Managing this Property.

Purchased for : $285000.00(List Price: $260,000.00)

Rented: $1950.00

Cash flow: $400.00

Second Property: San Antonio, TX(Using a Property Mgmt company) Yr Built 2017

Purchased for : $205,000.00(List Price: $185,000.00)

Rented: $1550.00

Cash flow: $350.00

During this time, was getting Syndication investment opportunities and was also learning about Investing in Multi-family, so with inspiration from Michael Blank's videos, started looking into smaller Multi Family units and bought a Triplex in Arlington Texas.

First Multi Family; Triplex in Arlington, Tx(yr Built 1982). Using a Property Management company.

Purchase Price: 520,000.00

Total Rents: $3545.00 

CashFlow: $650.00

So, the Journey continues as we head into 2022, Setting the Goal to acquire at least 25 units with ~ $200/unit Cashflow. 

Lessons Learnt: 

We can analyze deals and learn all we want, but at some point we have to conjure up the courage to take the plunge, trust the process and there is Power in the "FIRST DEAL", Now you are in the GAME, that will teach you so much and we will learn everything that is needed in the process, there are some specific podcast episodes, which resonated with me,

real-estate-millionaire-teacheraes-salary-michael-swanny-swan

buying-first-investment-property-newbie

biggerpockets-podcast-390-leka-devatha

4-single-income-family-buys-11-units-in-the-nyc-area-in-4-years

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Andrew FreedBusiness Member
Investor · Worcester, MA · Member since 2020 · 1k+ posts · 1k+ votes
4y

@Suresh Kannan - Wow, fantastic story. I love how you decided to just take action. As you know, we never have all the answers. At a certain point, we just need to take the plunge and trust in our ability to resolve any challenges that come our way. 

I too have a similar story. I started listening to BP during COVID after reading Rich Dad Poor Dad. I wanted to invest but didn't have the liquid cash to do it since I lived in an expensive market. So I decided to take out a HELOC on my 1 bedroom condo in Boston for $200K. In December 2020, I househacked a 3 family in Worcester MA, bought into a 132 unit syndication in April 2021, and bought a 3 family in July 2021 from my neighbor, all funded with the HELOC and $30k out of pocket.

First Property in 12/3/20 - Worcester MA, Yr built 1900 self managing property

Purchased: $560K (took $45K from HELOC)

Rents: $3400 for 2 units (I live in the third), $5200 total revenue after I move out

Mortgage $3100

Cash Flow: Once I move out, taking into account repairs, maintenance, vacancy, capex, I'll be cash flowing $1000

Second Property in April 2021 - Lowell MA, Yr build 1980, 132 unit apartment building

Invested: $65K for 1% equity + cash flow (took from HELOC)

Cash Flow: $5-7K per year, increases with rents and a planned refinance or sale in year 5-7. 

Third Property - July 2021 - Worcester MA, Yr built 1898, self manage property

Purchased: 450K - $40K out of pocket (took remainder from HELOC)

Rents: $4400 market rents, currently working on increasing rents. It's at $3,700 right now. 

Cash Flow - Taking into account repairs, maintenance, vacancy, capex, I'll be cash flowing $1000

I agree, its all about taking massive action and seeing opportunity where opportunity is not present. Initially, people might say, you can't afford to expand your portfolio, where are you going to get the cash from? But when you strong spirit to never give up combined with constant action, amazing things happen. Congrats on your success, Texas is a great market. 

[email protected]781-964-3200Podcast Guest on Show 69 Doors from ONE Real Estate Deal Using Other People’s Money
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  • Cham Vee
    Member since 2021 · 41 posts · 17 votes
    4y

    Good job Suresh. Thank you for sharing. You are absolutely right. You have to take action. Even i work for a tech company as software engineer and started investing in San Antonio, TX. I bought a duplex and triplex in last 6 months, rehabbing and listing them. Feel free to message if i can be of any help. 

    Good luck for your future projects 

    2Reply
  • Suresh Kannan
    OP
    Investor · El Dorado Hills, CA · Member since 2016 · 75 posts · 24 votes
    4y

    @Cham Vee thank you and looking forward to it !!

    1Reply
  • Cham Vee
    Member since 2021 · 41 posts · 17 votes
    4y

    @everyone:   Please take sometime to take a look at @Suresh Kannan's Instagram (
    livefitwithpurpose ). This guy is super disciplined and action taking rockstar

    1Reply
  • Andrew FreedBusiness Member
    Investor · Worcester, MA · Member since 2020 · 1k+ posts · 1k+ votes
    4y

    @Suresh Kannan - Wow, fantastic story. I love how you decided to just take action. As you know, we never have all the answers. At a certain point, we just need to take the plunge and trust in our ability to resolve any challenges that come our way. 

    I too have a similar story. I started listening to BP during COVID after reading Rich Dad Poor Dad. I wanted to invest but didn't have the liquid cash to do it since I lived in an expensive market. So I decided to take out a HELOC on my 1 bedroom condo in Boston for $200K. In December 2020, I househacked a 3 family in Worcester MA, bought into a 132 unit syndication in April 2021, and bought a 3 family in July 2021 from my neighbor, all funded with the HELOC and $30k out of pocket.

    First Property in 12/3/20 - Worcester MA, Yr built 1900 self managing property

    Purchased: $560K (took $45K from HELOC)

    Rents: $3400 for 2 units (I live in the third), $5200 total revenue after I move out

    Mortgage $3100

    Cash Flow: Once I move out, taking into account repairs, maintenance, vacancy, capex, I'll be cash flowing $1000

    Second Property in April 2021 - Lowell MA, Yr build 1980, 132 unit apartment building

    Invested: $65K for 1% equity + cash flow (took from HELOC)

    Cash Flow: $5-7K per year, increases with rents and a planned refinance or sale in year 5-7. 

    Third Property - July 2021 - Worcester MA, Yr built 1898, self manage property

    Purchased: 450K - $40K out of pocket (took remainder from HELOC)

    Rents: $4400 market rents, currently working on increasing rents. It's at $3,700 right now. 

    Cash Flow - Taking into account repairs, maintenance, vacancy, capex, I'll be cash flowing $1000

    I agree, its all about taking massive action and seeing opportunity where opportunity is not present. Initially, people might say, you can't afford to expand your portfolio, where are you going to get the cash from? But when you strong spirit to never give up combined with constant action, amazing things happen. Congrats on your success, Texas is a great market. 

    [email protected]781-964-3200Podcast Guest on Show 69 Doors from ONE Real Estate Deal Using Other People’s Money
    3Reply
  • Patrick Bavaro
    Fort Lauderdale, FL · Member since 2018 · 289 posts · 342 votes
    4y

    @Suresh Kannan congrats and nice jo! Action is the key in your recipe. I am in the same boat! I went from zero to 3 in about 6 months in 2021 after 2 years or more on the sidelines.

    Currently I’m building a 4/3 new build in Cape Coral. Total all in cost is about $265k and I financed It at around 3.6% with 10% down. Rents right now are at about $2300 and climbing. Currently post construction appraisals are coming back at $340k-$410k depending on location of the property. So, I find myself in a position to sell and make a quick $100k return potentially, or keep It and rent for the cash flow and future appreciation growth. Not a bad position to be in! I’d be happy to connect to share experiences. Good luck!

    3Reply
  • Suresh Kannan
    OP
    Investor · El Dorado Hills, CA · Member since 2016 · 75 posts · 24 votes
    4y

    @Andrew Freed wow that’s an action taker. Congratulations and Best wishes to an Amazing 2022.

    1Reply
  • Suresh Kannan
    OP
    Investor · El Dorado Hills, CA · Member since 2016 · 75 posts · 24 votes
    4y

    @Cham Vee thank you 😊, I follow Andy Frisella (75Hard) and Jocko willink to keep me on track on the fitness side!!

    1Reply
  • Suresh Kannan
    OP
    Investor · El Dorado Hills, CA · Member since 2016 · 75 posts · 24 votes
    4y

    @Patrick Bavaro that’s fantastic, you are right on track, Congratulations and a Wonderful New year 2022🎊🍾!!!

    1Reply
  • Erick Sembrano
    Rental Property Investor · Wakefield, MA · Member since 2018 · 65 posts · 108 votes
    4y

    Congratulations @Suresh Kannan! You have a great story and did well this year. I'm excited for you in 2022 as to what you can achieve if you continue to take daily action. Happy as well that you are going bigger over time, from single family to multifamily, which I think is great decision for continued growth. Curious to know what are you goals for 2022? 

    1Reply
  • Carlos JulioPro Member
    Rental Property Investor · Cape coral · Member since 2020 · 55 posts · 30 votes
    4y

    Great story @suresh kannan. I am in that process too ...  I am a w2 trying to get momentum and looking for an accountability group to accelerate our journey .

    @Patrick Bavaro I am in cape coral , let's connect..

    1Reply
  • Suresh Kannan
    OP
    Investor · El Dorado Hills, CA · Member since 2016 · 75 posts · 24 votes
    4y
    Originally posted by @Carlos Julio:

    Great story @suresh kannan. I am in that process too ...  I am a w2 trying to get momentum and looking for an accountability group to accelerate our journey .

    @Patrick Bavaro I am in cape coral , let's connect..

     @Carlos - This is a great community and glad to know you are in this journey as well. Focus on what your criteria, location and asset type is and focus on getting that first deal done. Best Wishes

    0Reply
  • Suresh Kannan
    OP
    Investor · El Dorado Hills, CA · Member since 2016 · 75 posts · 24 votes
    4y
    Originally posted by @Erick Sembrano:

    Congratulations @Suresh Kannan! You have a great story and did well this year. I'm excited for you in 2022 as to what you can achieve if you continue to take daily action. Happy as well that you are going bigger over time, from single family to multifamily, which I think is great decision for continued growth. Curious to know what are you goals for 2022? 

    Thank you @Erick, appreciate it. The RE Goal for 2022 is to own atleast 25 Units with ~ $200/Unit along with some partners. What are your Goals for 2022? curious to learn about your journey Erick.

    0Reply
  • Account Closed
    Member since 2021 · 217 posts · 190 votes
    4y

    First Property in 1/31/2021 - Fort Worth, Texas .Yr Built - 2013. Self Managing this Property.

    Purchased for : $285000.00(List Price: $260,000.00)

    Rented: $1950.00

    Cash flow: $400.00

    Can I ask you how this possibly cash flows, unless you paid cash and have no mortgage

    1Reply
  • Saurin PandyaPro Member
    Investor · Holly Springs, NC · Member since 2015 · 47 posts · 12 votes
    4y

    @Suresh Kannan that’s amazing! Congratulations and more success to you.

    0Reply
  • Allen Wu
    Rental Property Investor · Member since 2021 · 335 posts · 193 votes
    4y

    @Suresh Kanna

    Congrats! Great story! Do you have a team out in Dallas/Fort Worth?

    0Reply
  • Erick Sembrano
    Rental Property Investor · Wakefield, MA · Member since 2018 · 65 posts · 108 votes
    4y

    @Suresh Kannan I like your goal! Keep at it and good luck! : ) 

    My goal for 2022 is to buy a house hack property early in the year, a 6+ MF property in Central Mass mid-year, and a STR by the end of the year. Although will keep an eye out if we come across a partnership opportunity to own a part of a bigger MF portfolio.

    0Reply
  • Account Closed
    Member since 2021 · 217 posts · 190 votes
    4y

    So were on a couple days now and no response.

    Before I chalk this up to being another REI instagram post: someone else want to explain to the class how a house bought for $285000.00 and rented for $1950.00/mo cashflows $400.00/mo? unless it's a cash deal, meaning real low ROI

    1Reply
  • Suresh Kannan
    OP
    Investor · El Dorado Hills, CA · Member since 2016 · 75 posts · 24 votes
    4y
    Originally posted by @Account Closed:

    First Property in 1/31/2021 - Fort Worth, Texas .Yr Built - 2013. Self Managing this Property.

    Purchased for : $285000.00(List Price: $260,000.00)

    Rented: $1950.00

    Cash flow: $400.00

    Can I ask you how this possibly cash flows, unless you paid cash and have no mortgage

     David, I do have a mortgage. I put down 35%. 

    0Reply
  • Suresh Kannan
    OP
    Investor · El Dorado Hills, CA · Member since 2016 · 75 posts · 24 votes
    4y
    Originally posted by @Saurin Pandya:

    @Suresh Kannan that’s amazing! Congratulations and more success to you.

     Thank you Saurin. 

    0Reply
  • Suresh Kannan
    OP
    Investor · El Dorado Hills, CA · Member since 2016 · 75 posts · 24 votes
    4y
    Originally posted by @Erick Sembrano:

    @Suresh Kannan I like your goal! Keep at it and good luck! : ) 

    My goal for 2022 is to buy a house hack property early in the year, a 6+ MF property in Central Mass mid-year, and a STR by the end of the year. Although will keep an eye out if we come across a partnership opportunity to own a part of a bigger MF portfolio.

    Thats a Great Target you are going after Erick, I am pretty sure you are going to crush it. Wish you all success and a Fantastic New Year 2022!!

    0Reply
  • Erick Sembrano
    Rental Property Investor · Wakefield, MA · Member since 2018 · 65 posts · 108 votes
    4y

    Thanks @Suresh Kannan! Wishing you the best and a successful 2022! 

    1Reply
  • Jesse Rodriguez
    Rental Property Investor · Los Angeles, CA · Member since 2020 · 141 posts · 61 votes
    4y

    @Suresh Kannan That's inspirational! How were you able to get the fund these in short time? Was there any trouble with DTI ratio with banks, if that's what you used?

    1Reply
  • Suresh Kannan
    OP
    Investor · El Dorado Hills, CA · Member since 2016 · 75 posts · 24 votes
    4y
    Originally posted by @Jesse Rodriguez:

    @Suresh Kannan That's inspirational! How were you able to get the fund these in short time? Was there any trouble with DTI ratio with banks, if that's what you used?

     @Jesse - It was not easy, few things I want to share is, Me and my wife both work in the Software Industry so we have a decent income and we saved for each deal, had to make adjustments, sold some assets we had, got some loan from my 401 k so had to sacrifice some things to get this done.

    0Reply
  • Jesse Rodriguez
    Rental Property Investor · Los Angeles, CA · Member since 2020 · 141 posts · 61 votes
    4y

    @Suresh Kannan Gotcha. Thank you for the honest answer. It’s good to see what you’ve accomplished in a short matter of time

    1Reply
  • Suresh Kannan
    OP
    Investor · El Dorado Hills, CA · Member since 2016 · 75 posts · 24 votes
    4y
    Originally posted by @Jesse Rodriguez:

    @Suresh Kannan Gotcha. Thank you for the honest answer. It’s good to see what you’ve accomplished in a short matter of time

     Thanks brother Jesse. Best wishes on your Goals!!

    0Reply
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