Boston, MA · Member since 2017 · 95 posts · 102 votes
Hi guys, wanted to share my story for some motivation.
I started investing in 2007 as a 23 year old. My portfolio consists of 13 units and the current annual cash flow is roughly $170k annually. Most of my units are in Somerville and Cambridge. I'm a Boston native (Yay Pats!). Since I was lucky enough to benefit from the real estate slump, I have built up an equity of $2.4mm in my properties. The total value of my properties is just over $7mm.
My partners have larger apartment complexes 288 units and 1,094 units and are more at a syndicate level. I hope to grow my portfolio over the next 5-7 years by investing in larger deals.
Attached are some photos from my property in Cambridge. Lot of work has gone into it. I will share the before photos later.
I'm more than happy to answer any questions, share my story and help the community.
Investor · Rochester, NY · Member since 2016 · 477 posts · 426 votes
9y
@Account Closed - No sweat there buddy, maybe you should take it as a compliment that your deals are so good that people have a hard time believing they're real! :-)
For the record, if you had just told me you're a VP with Wells Fargo and run a website that charges people $2,000 to join a "group" in their area also looking to invest, it probably would have saved a lot of time. The more I look into you (and 'Income Properties Portfolio') the more I would be turned off as a potential student/investor.
You and your partners could be the most upfront, honest, stand-up, legitimate company in the world - but nothing in this post, your website, or the public records for Goldschneider Property, LLC have made me anything other than more concerned. Take it as friendly advice that you may want to work on your marketing or message :-)
Rental Property Investor · Cambridge, MA · Member since 2016 · 634 posts · 415 votes
9y
@Account Closed Congratulations on amassing such a portfolio. It looks like you started investing just before the "crash" happened in 2008 (although those areas were a bit more insulated than say Florida or Nevada). I bought in 2008 in Cambridge and I've seen quite a bit of appreciation, so I can only imagine what you've been able to amass with 13 units. Keep up the good work!
@Account Closed Congratulations on amassing such a portfolio. It looks like you started investing just before the "crash" happened in 2008 (although those areas were a bit more insulated than say Florida or Nevada). I bought in 2008 in Cambridge and I've seen quite a bit of appreciation, so I can only imagine what you've been able to amass with 13 units. Keep up the good work!
Thank you David. Yeah it was great. But it's important to keep climbing and focusing on larger deals. So I think I'm good with the small stuff now. Forming a syndicate is the way to go.
North Shore , MA · Member since 2016 · 26 posts · 7 votes
9y
@Account Closed that is amazing! congrats! Im just getting started. im just a few minutes north from Boston. Do you mind sharing some of the numbers with us? Also have you bought anything recently? Im trying to decide if its better to wait until the market cools down a bit before buying my second investment property.
Have you considered a cash out refi to use some of that dead equity?
Buildings two through four all came through cashing out equity. I have not put in another dollar of my own capital since the first one. Managing debt efficiently and effectively has allowed me to grow my portfolio without contributing additional cash.
@Account Closed that is amazing! congrats! Im just getting started. im just a few minutes north from Boston. Do you mind sharing some of the numbers with us? Also have you bought anything recently? Im trying to decide if its better to wait until the market cools down a bit before buying my second investment property.
My most recent purchase was in May 2016 and was of a 4-family near Sullivan Square (Somerville). Always have to buy right. Never overpay. Renovate in a way the generates a clear ROI. Pro forma cap rates need to be in excess of 8-9% for me to get excited.
Boston, MA · Member since 2017 · 95 posts · 102 votes
9y
Originally posted by @Erika Amaro:
@Ari Goldschneider that is amazing! congrats! Im just getting started. im just a few minutes north from Boston. Do you mind sharing some of the numbers with us? Also have you bought anything recently? Im trying to decide if its better to wait until the market cools down a bit before buying my second investment property.
Originally posted by @Clint Earnest:
What kind of units do you have? Would you mind sharing how you get to $1000 cash flow/month/unit? Congratulations on the success!
South Jersey, NJ · Member since 2014 · 154 posts · 50 votes
9y
Is that in your pocket cash flow? Do you have managers, and putting $ aside for vacancies and repairs? Or is that all figured and you're left with that number? Because I'd do just about anything to get there.. seems impossible.
Boston, MA · Member since 2017 · 95 posts · 102 votes
9y
That is pocket cash flow. I do the management myself which is very do-able with 13 units. Vacancy doesn't happen (at least for me) in the Boston area so allocating for vacancy would be overly punative. I have some repairs budgeted there ($1500 per unit per year) but I don't look at cash flow allocating for future major repairs. Many of the up front repairs are performed when the initial purchase is made and as such are capitalized.
Gotta buy right and make improvements the generate a clear return on investment. The uglier the better!
North Shore , MA · Member since 2016 · 26 posts · 7 votes
9y
@Todd Douglas Hi Todd, I invest in multi fams. Between 1-4 Units . My first investment is going great. Got some awesome tenants, positive cash flow. Only a few little repairs were needed. Unfortunately because the market is so high there will be little appreciation in the next few years. How bout you?
Architect | Developer · Ayer, MA · Member since 2015 · 48 posts · 21 votes
9y
Incredible!!! @Account Closed
You are who I want to be in a few years! If you don't mind me asking, how did you find your deals? Direct marketing? And how did you find your partners? I've been going to local real estate meetups and events, but none of the people I've met so far are investing on the scale that it sounds like you're headed to and your partners are at.
I'm a newer fellow investor with 3 doors currently, but our goal is 8 by the end of the year. Looking to pick up a 3-4 family in Cambridge / Somerville area currently.
Boston, MA · Member since 2017 · 95 posts · 102 votes
9y
Ashley Owens
My four buildings were all on MLS. They were ugly pieces of garbage that just didn't get the attention of the broader market. Perfect for me. The uglier the better, mold, rats, knob and tube electrical, plumbing out of
Code. Bring it on!
With the exception of some investment from my parents, I've done this all without partners. Bank debt is awesome. Aside from the initial investment in Cambridge, no additional cash has been contributed to this portfolio.
Architect · Austin, TX · Member since 2016 · 7 posts · 1 vote
9y
@Ari Goldschneider just as Ashley mentioned, you are where several of us want to be in the future as well. It is interesting to see the other side of the coin. As an Architect we always see the transformation of old properties but don't get to see the investors perspective. Whether that be 5 or 10 years down the road I am glad to see such great returns/results.
@Ari Goldschneider just as Ashley mentioned, you are where several of us want to be in the future as well. It is interesting to see the other side of the coin. As an Architect we always see the transformation of old properties but don't get to see the investors perspective. Whether that be 5 or 10 years down the road I am glad to see such great returns/results.
Thank you. I see you are in Houston. Actually my financing partner currently is a partner in ~1,400 units all in Houston. One is a 288 unit building while the other is 1,094 units. Houston's a great market.