Be careful what you wish for! 9 properties & coin-op by 26!

[David Huynh]

I want this post to benefit those who are starting out in real estate and want to believe they can succeed.

Don’t take this as me bragging about my accomplishments (most people don’t even know that I own a real estate portfolio, outside of BP).

Real estate sucks. It really does suck when you first start out. My first 2-3 properties were the most stressful, sleepless nights, and almost sickening periods. After that, it gets a lot easier. I kept telling myself - it’s difficult to count to 29 but after 30, you just get it. I don’t remember who taught me that, but it kept me alive.

Real estate rocks, once you get it. After fumbling in the dark for the first couple of years everything is easier and it is smoother sailing. You’ll just want to keep signing on that line, over and over again.

For the past couple of years, it has been fun, exciting, depressing, hectic, and crazy. I finally get to say and announce to the world that I’ve achieved my goal – 9 properties and a business by age 26. My boss has always told me “Be careful what you wish for, you might just get it”

Here is my list:

• Condo (1/1)
• Condo (2/2)
• Triplex
• Single family (3/2)
• 4 plex
• Store front w/ two residential dwellings
• 8 unit apartment
• 4 plex
• …. Finally my own single-family residence (closing March 31st)
• Coin-op/dry cleaning business (no idea what I’m doing here)

Now it is time to 10X my goals, cause it does work! I still hold my full-time sales job, a steady relationship with my fiancé, and a newborn :). And yes, at times she wants to get rid of me if she hears about real estate.

There was definitely a point in time where I did not believe that this was possible, especially in my first couple of years. I was scared that I would flop and fail (still do today) but I continue to grind on it. I hope all of us, get to succeed, create wealth, be financially free, or whatever our goal is, makes it there. The BiggerPockets podcasts and community definitely helped me. 

[David Huynh]

@Edwin GachingaYes 7 of the 8 are positive cashflow according to my rental calculator which factors in capX, vacancies, property management, repairs. The one stand alone one makes $75/month but it is a pure appreciation play. It could cashflow if I added a bedroom in the basement.

I'm a fairly conservative investor: a minimum of 20% COC, 2% rule, with a good buy and/or multiple exit strategies.

I actually discovered BiggerPockets because I ran into issues purchasing my first two condos - I could not get the bank to finance the second condo because there was too many rentals within he complex. 

1) Condo (1/1) - purchased w/ 5% down as an owner occupied property (one of my best properties)

2) Condo (2/2) - got denied so I got creative and used the checks that credit cards sent you (25k) from three different cards, begged friends, and had about 15k in my bank. I purchased it for 55k and it was valued at 90k. 

**This is where it really sucked, I could not refinance myself out of the property quickly enough and had to get a part time bartending job (14 months) to avoid penalty and payments. 

3) Triplex - Owner financed w/ 10% down, cash cow (over 2% rule)

4) SFH (non cash flowing) - owner occupied w/ 5% down and house hacked that w/ 2 other roommates off the bat.

5) 4 plex - 70k cash out refi from my Condo (2/2) and used it as a downpayment on this 4 plex, another cash cow (over 2% rule). 

I've honestly been VERY FRUGAL with my money and have yet to take a salary. All of my funds (from work) and cash flow get invested into either my properties or into another property. I've always taken 6-12 months of cashflow from every property and put it back into it, making it as nice as possible. It's hard but it is definitely worth it. I know some other investors who struggle because they changed their lifestyle as soon as they buy 1, 2, 3, 4 properties. Finally, I can take a real vacation after 5 years (Cruise this summer!).