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Updated about 7 years ago on . Most recent reply
Today - at age 24 - I "retired". Here's how I did it.
Hey all! Just sharing my story with the hope that it will light a fire under some of you, or keep the one you've already got burning hot. Here we go:
It all started with a small loan of a million dollars from my dad....okay, okay only kidding!!
Last year I purchased a 4 plex with good amount of money down (20-25%) in East Hartford Connecticut. PP was 200K, and rents were at $3605 a month. I sat on the property for a few months, felt out the tenants and have since then asked a few tenants to leave, or increased their rent as a way to encourage them to find new housing. In the last 11 months or so, I have rehabbed two apartments (10-12K of material, labor done by yours truly) and am now sitting at gross rents just shy of $4,110. Recap - I got a 4 plex, put in 10-12K of rehab to get out an extra 6K per year. I like that ROI!
Most recently I purchased a SFR in Windsor Locks, CT. I'll admit, I'm a huge car buff, and I wanted the place for the generously sized 4 car garage....well, once we got to the inspection period, I didn't think the numbers would work, so I started to back out. The listing agent made magic happen though, and got the sellers to drop the price 60K! I figured that the house needed 30-40K worth of work. This property quickly became a home run deal.
Even though I'm a car guy and wanted that garage badly, I knew I had to mortgage the rest of the house with it...but, what 24 year old in their right mind needs a 4 bedroom house for himself? So guess who got himself a couple of house mates?? This guy! The mortgage and then some is covered, and now I am sitting on two properties, both with what I would consider good equity. One I will likely never sell, the other is more of a live-in-for-free-while-making-a-profit-flip.
At this point, the money I make as a landlord is getting dangerously close to the money I was taking home from my W2 job as an entry level architect in training in downtown Hartford. I've decided to put that career on hold to develop a property management company here in north central CT. There is no way I could "retire" and sit on my butt for the next 60 years! Plus, I want to buy more cash producing assets, and be my own boss....that takes money! ;)
Here's to financial freedom, my friends!!
Filipe
Most Popular Reply
Origi?nally posted by @Filipe Pereira:
Hey all! Just sharing my story with the hope that it will light a fire under some of you, or keep the one you've already got burning hot. Here we go:
It all started with a small loan of a million dollars from my dad....okay, okay only kidding!!
Last year I purchased a 4 plex with good amount of money down (20-25%) in East Hartford Connecticut. PP was 200K, and rents were at $3605 a month. I sat on the property for a few months, felt out the tenants and have since then asked a few tenants to leave, or increased their rent as a way to encourage them to find new housing. In the last 11 months or so, I have rehabbed two apartments (10-12K of material, labor done by yours truly) and am now sitting at gross rents just shy of $4,110. Recap - I got a 4 plex, put in 10-12K of rehab to get out an extra 6K per year. I like that ROI!
Most recently I purchased a SFR in Windsor Locks, CT. I'll admit, I'm a huge car buff, and I wanted the place for the generously sized 4 car garage....well, once we got to the inspection period, I didn't think the numbers would work, so I started to back out. The listing agent made magic happen though, and got the sellers to drop the price 60K! I figured that the house needed 30-40K worth of work. This property quickly became a home run deal.
Even though I'm a car guy and wanted that garage badly, I knew I had to mortgage the rest of the house with it...but, what 24 year old in their right mind needs a 4 bedroom house for himself? So guess who got himself a couple of house mates?? This guy! The mortgage and then some is covered, and now I am sitting on two properties, both with what I would consider good equity. One I will likely never sell, the other is more of a live-in-for-free-while-making-a-profit-flip.
At this point, the money I make as a landlord is getting dangerously close to the money I was taking home from my W2 job as an entry level architect in training in downtown Hartford. I've decided to put that career on hold to develop a property management company here in north central CT. There is no way I could "retire" and sit on my butt for the next 60 years! Plus, I want to buy more cash producing assets, and be my own boss....that takes money! ;)
Here's to financial freedom, my friends!!
Filipe
Congratulations on these deals! You are taking action and doing amazing and that's very inspiring. Keep in mind however that the sweet bank loans with low interest rates are much easier to come by when you have a W2 income and maybe you are not entirely dependent on the cash flow to live on. So maybe hang on to your job for a little while longer while you grow your portfolio or have a strong private lending network :)
Congrats again!!