Two months into 2018 and its looking awesome!!

[Michael Spittler]

I am not sure if this is quite considered a success story.... yet, however I had a very agrresive goal going into 2018 and since I have great momentum at this point I do think my momentum in itself is a success. See, I came into 2018 with the goal of acquiring 8 rental units this year and I know that to some 8 units might not be considered "aggresive" however, before this year I only held one rental poperty. So 2017 I spent the year getting my finances right and in January of this year I hit the ground running. I closed on my second rental, a SFR using conventional financing in Jaunary and starting a somewhat decent sized rehab on the property and it is on track to be rent ready by April 1st.

While rehabbing that property (which will cash flow approximately $300 a month when all done) I managed to get another SFR under contract using owner financing which I will be closing on this month... completely rehabbed with a tenant in place and negotiated down to 30% below market value with seller financing at 6% for 3 years...now the awesome part of this deal is that although the property won't cash flow until it is paid off.... in 3 years I will own a $75K property free and clear that will cash flow $600 a month....second unit...check....

Now, approximately a week after that was put under contract  I was the high bidder on a duplex at a tax auction which was also about 30% below market value and with the court approval time and 30 days to close will fall perfectly in line with when the rehab on unit number 1 is complete... and after a two month rehab on that property it will cash flow $1000 per month... third and fourth unit... check and check.... 

Additionally, I am currently in negotiations for a three unit comercial/retail property using bank and seller financing.... units five, six and seven... check

which means that 8 weeks into the year I was already well past the half way point to my goal for the whole year!!!... now the word aggressive seems to have nothing to do with what I am looking to achieve. I know theres a ton more to be done besides getting these units under contract but the path is comming together...So I guess the point of this post to everyone else is set your goals and stick to them!!! Within the last 8 weeks I have completely stepped outside of my comfort zone... asking for and negotiating seller financing, bidding at forclosure/tax auction, working on inheriting a section 8 tenant which means dealing with the housing authority, etc. and the worst that can come of any of it is that I learn something.

If you don't change anything... than nothing changes!!!

[Michael Spittler]

@Jay Helms I had to think about your question for a couple days..... I think consistency and perseverance are the keys to the success that I feel like I am seeing right now. I have being hyperfocused on finding deals and sticking to my 8 unit goal. I am also a contractor and 3 of the properties need some attention before they can be rent ready so I am not sure if shooting for more units this year is the right answer at this point until these properties all settle out. One of the properties that I currently have under contract already has a tenant in place so I guess focusing on searching for more properties that need less work would probably be a good route to go in order for me to keep up my momentum... anyhow, thanks for asking the question.... It really gave me something to think about for a few days.