I hesitate to call this a success story

[Dustin Beam]

Not sure I can call it a success until I've had sustained cashflow, but I did close on my first properties yesterday. They are three fourplex buildings, basically identical and side by side. They are located in Kansas City metro (Raytown to be specific).

I lot of excitement and some nervousness (I don't know what I don't know), but I obviously expect it work out or I wouldn't have gone through with it!

There were lots of headaches along the way for several reasons, many because of my inexperience. Commercial or traditional financing, getting it under contract (FSBO), etc, etc. But it worked out and here I am.

Thanks to everyone at BP, and @Joshua Dorkin for starting the site. It has helped me tremendously and I expect it will going forward!

[Dustin Beam]

I guess I'm going to turn this thread into my little diary of sorts. 

Anyway, I ended up not cashflowing really anything over 1.5 years. As I said in a previous post, I was steadily rolling the profits into the property to upgrade landscaping, exterior, flooring, etc. This did allow me to make some incremental increases in rent and also took care of quite a bit of deferred maintenance of the old property.

So that's sad news. The good news is that over 1.5 years, I had an IRR of ~115% due to the increase in property value. I then took those gains and did a 1031 to purchase 11 townhouses.

On the one hand, I went down one rental "unit". The good news is they are higher rent 3 bed, 2 bath townhouses with a garage, vs the 2 bed, 2 bath 4 plexes I sold. They are also only about 13 years old instead of 30 something.

I also will get some of the single family home benefits and some of the multifamily benefits. The HOA is defunct, so no fluctuation concerns about HOA fees. They are also all within a stone's throw of each other, so that's a nice convenience bonus. And lastly, I no longer have to pay for water/sewer/trash.

I'm excited to see where this goes! Thanks for reading.