All Forum Posts by: DJ Cummins

Thanks @Gary Newbold

I agree.  I still review all of the deals on the success story.  Practice doesn't make you perfect, but is sure helps :)

Hello @Ashley Cote,

I am nowhere near @Eric S.'s 70, but my wife and i are at 6 units right now.  We both work 9-5ish jobs and don't have any problems.  When you are doing a rehab, or looking for new tenants, there is a bit more work, but once a property is rented, there isn't a ton you have to worry about.  If we have an issue, our tenants call/text us.  If it is something fairly minor that i can fix, and it can wait, i do it after work.  If it is something more major, or something that can't wait, we call a repair person to go out right away.  

Having people you can trust will make the landlord life much easier.  Someone you know will have a name of a trusty trade person.  Our general contractor got us in touch with a good HVAC guy--who got us in touch with a good appliance guy.  The different trades all know each other, and can make good suggestions on people you can trust while you are starting out.  

I would save that 10% property management until you are big time like Mr. Schafer above.  I dont think i would ever want 70, but 25-30 is my current goal--and goals always change.  i hoped to get to 10 units someday when i started under 3 years ago, and we are already to 6.  :)

Hello @Mason Olah,

It seems a bit intimidating at first, but once you get started, it is addicting.  That first rent "payday" that you get will change your outlook on life.  My wife and I have completely changed our outlook, and our saving every penny for the next rental, and the one after that, and the one after that...!  We were living paycheck to paycheck 3 years ago, and we now have 6 units and are in a totally different space than we were then.

Keep reading on this site, and listening to the podcasts.  I listen to about 30 minutes of a podcast everyday while i am getting ready for work.  I still learn things pretty much everyday.  It makes a big difference!

I have also found that following this success story discussion link is helpful.  It really keeps you motivated seeing what is possible out there!  A lot of people don't like posting their numbers like i did above, but i think it is really helpful for newer investors to see.

Feel free to reach out to me if i can be of assistance.  I would be glad to help.

All the best,

DJ

@Robin Boyer that is great!  I have one property that i might consider doing a 1031 on in a couple of years, but i haven't done a ton of research.  My accountant is not a huge fan of them, but i'm still tempted to try it.

4-6 units would be a pretty solid year!  i am hoping on 4 sfr in the next 24 months, and then using the equity for something much larger...like out of the rat race larger! 

Hello @Kevin McGinnis,

Thanks. Yes, we are excited about this one. So far we have done 3 deals, all 3 were different. 1st deal was a FSBO in the news paper(4-plex), 2nd was a SFR off of the MLS, and this deal was actually a word of mouth-the owner was the babysitter for my cousin's new baby. We were able to buy it before it was put on the market.

I would be glad to meet up.  I love talking real estate.  I have been meaning to meet @Ronald Perich for about 2 years as well, we just haven't been able to make it happen.  Maybe we should try and do a BP meet up somewhere in our area(that doesnt cost money to attend--i'm cheap. lol)

Good morning everyone!  Last night my wife and I got our lease signed and rent collected for our newest rental, bought and rehabbed over the past 2 months or so.  We are almost at our 3 year anniversary of becoming landlords, and we are really starting to gain some momentum.  That snowball thing that you have read/heard about...it is real :).  This is our 3rd property, 6th unit.  It is a 1000-ish SF house in Bethalto, Illinois(25 minutes from St. Louis, MO) and we are really proud of how it turned out.  With our current savings + current cash flow, we are hoping to start pulling off 2 of these properties per year for the next year or two.  We are not using our equity, we are letting that build up for a big purchase down the road.

Here are the numbers:

Purchase price: 55,000.00($3,500.00 in sellers assistance for new AC/HVAC)

Mortgage = $44,000.00, 20 year, 5.0%

Repairs = $12,950.00(new AC/HVAC, new laminate flooring, fresh paint, new kitchen cabinets and sink.

ARV = $80,000.00-$85,000.00(per our realtor--i agree as well--i work as an analyst for an Appraisal Management Company)

Equity total = $36,000.00-41,000.00.  Equity that we could cash our refi with: $28,800.00-33,800.00)

 $950 in rental income

-$662.33 in total expenses(6% for cap ex, vacancy, and repairs, + PITIA)

=$287.67 in cash flow per month

We love the current cash flow, but the exciting part is the equity.  We are not using any equity on our properties, and are letting that build up.  We plan on using it all at once on a big purchase(or a couple of medium sized purchases) in a few years.  After a few more deals like this one, we will be ready to make a big move, and at least 1 of us(probably my wife) will be out of the rat race!

Keep on Keepin' on!

DJ Cummins

Hey @Phil T.,

Good question, and this is one that i faced about 3 years ago.  My wife and i had a similar monthly "savings" and we contemplated paying down the mortgage, or investing in rentals.  We went with the latter, and are shopping for property #4 now.  I am very happy with the decision we made...and the 3 properties that we own cash flow enough to already pay our own mortgage.  That feels pretty good!  

There isn't a wrong answer...both options are better that what most of America would do.  The average person with an extra $900 per month would either upgrade their house, buy a nice boat, or trade up vehicles.  Either way, you are doing the right thing--it will be a win in my book.  Go with your gut, and whatever you feel comfortable with!  

let me know if i can help with anything!

DJ

Congrats @Michael Shear.  My wife just completed a full rehab on the Illinois side of the river, and it was a test.  We contracted out a lot of the major work, but it was...lets just call it "an experience."  LOL.  Keep putting in that work...We are starting year 3 right now, and shopping for property #4!

i need some opinions here. We just finished rehabbing a sfr that we bought 2 months ago. I'll spare you all the work that we did and just make this about the numbers. I'm still leaning towards keeping this as a rental. please let me know your opinion. purchase price: 55,000(9k) down payment rehab cost: 13,100(all in = 22,100) 20 year mtg, 4.95%. balance = 43,700 We have a renter filling out an application tonight that loved the place. They will be sending us the application tomorrow. Willing to sign a lease for $950 per month. great roi. Cash flow would be just under $300 per month. just had a guy offer $82,000 for the house tonight. i love the thought of selling and being able to buy 2 more properties with that 35k-ish check. I am torn. What are your thoughts?

Originally posted by @Paul Bowers:

If life hands you lemons, have your niece run a lemonade stand and profit $98! With that attitude you should definitely be on the right path b

 Haha.  She told me that she thought she would just make lemonade everyday instead of going back to kindergarten.   It was hard to disagree with her.  She has had a job since she was three...she works every other Sunday at my aunts antique shop.  That kid probably has more money in savings than me!