0 to 18 units in two years

[Jordan Moorhead]

I just closed on another 12 units today bringing my total to 18 units!

This won't allow me to retire in luxury but will cover all of my basic expenses if something were to happen and put me on the sideline for a while.

I started in 2016 with a Duplex that I bought in Minneapolis with a 3.5% down FHA loan. About a year later I closed on a 6 plex in Louisville KY, which was bought with owner financing.

The one that closed today was two more six plexes and the previous six plex refinanced into one loan. The purchase was a 14% cash on cash return with all expenses and management. 

The purchase price on the original six plex was $320,000. These next two were $703,000, together as a package. The current gross rents are right around $11,000 but will be closer to $14,000 after we turn the units and raise rents. Both of the new buildings need minor renovation and one unit needs a major overhaul.

I won't be managing any of it, used US Bank to do that loan and refinance. Seven or eight banks told me no before I went to them and they said yes. The majority of the 20% down payment came from the proceeds of my duplex sale and I was able to make up most of the difference, borrowing a bit from family to get the deal done.

After this I'll be looking for more apartments and a mobile home park to try and keep growing the portfolio!