How To Make $2 Million in Real Estate in 2 years in the Bay Area

[Account Closed]

My partner and I went out to lunch with one of our agents who sold us 2 buildings last year. He asked how much do we cash-flow on the buildings? We looked at each other and said we didn't know. You've gotta be kidding me was his reply. We said nope. That prompted me to run some numbers. Here they are:

$2.25M invested in 5 deals totaling 36 units

$1.2M cashed-out (the proceeds went back into new deals of course)

$1.05M cash still tied up

$6.475M in total acquisitions

$8.9M appraised value

$110k/year net cash-flow after all expenses and reserves

$9.9M estimated value once fully stabilized. 

This is for 1.5 years worth of work. First acquisition was in contract in Feb 2015 and closed in May 2015. Last acquisition was closed in May 2016.  All deals are right here in San Jose.  This is for individuals who say there are no deals in the Bay Area.

I've shared details of the deals with some close BP friends. In fact, I've given them a tour of these buildings.  Of course I will not debate with people who say there's no cash-flow in the Bay Area and appreciation is speculation. I'll let the results speak for themselves.