All Forum Posts by: Jaredith Mize

@Amanda G. Thanks! I’m using a yellow legal pad at this point and trying to list things in order of priority. I need to at least incorporate some sort of planner. If I could find a free project management software, I would use it. I’m at the point where it would be super helpful, but I can’t justify another paid subscription...

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Good news first! I have acquired two properties. Both properties are free and clear. Property 1 is rented at $700 per month. I am doing a cash out refi on property one for the funds to rehab property 2. Property 2 is a full gut rehab. The floor joists were broken (2"x8"s on a 16 foot span...). Had those replaced with 2"x12"s and the floors raised. Next phase is some further demo, so we're really just getting started. There's about $28,000 worth of rehab left.

Also, I have an offer in on a HUD repo. I am hoping to buy it with cash and pull out the equity from property 2, once the rehab is done, to rehab property 3, which will be our primary residence. My issue at this point is just juggling everything on the rehab with a full time + job. Any tips or tools for managing projects with multiple subs and a lot of moving parts? Feeling a little overwhelmed at the moment and don't want to make any major mistakes...

Thanks in advance for the advice!

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Originally posted by @Caleb Heimsoth:

Jaredith Mize I didn’t see anyone else mention it which isn’t surprising since BP tends to be way over optimistic as a whole.

If you want to own hundreds of units you will either needs millions of your own capital or use other peoples money which would give you millions. Either way you’ll need a lot of money and I don’t see you getting there in 6 years. I know it’s possible but I find it unlikely. Most people on BP who want to invest never actually do it. So like others have alluded to save the giant goals and dreams for later and buy a duplex or quad or single family to get started.

Also extend your deadline. It’s great you want financial freedom (which is really just a buzz word for saying I don’t want to do my day job) but it’s difficult to achieve. So give yourself 10-15 years, if not longer.

Thanks for the advice! I like to think I am self aware enough to realize that I am naturally overly optimistic (my wife reminds me of this all the time). I assumed many others on BP were in the same boat. I do think I can (possibly) quit my day job within 6 years, because I only need about 50 units to do so. I will probably still work my day job, but I will be in a position where I can take half the salary and work 20-30 hours. At the moment, I'm working 60-80 hours and it's just too much... I'm looking at about 15-20 years to hit my goal of a few hundred units. I do want to be realistic with my outlook, but I don't want to lose my optimism. It's hard to strike a balance sometimes!

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Originally posted by @Jim Sestito:

@John Woodrich Should we get a bigger pockets Spouse Analyzer?? cc @Mindy Jensen

Haha! I was 19 when I got married, so I wouldn’t have listened anyway. We’re 15 years into it now, so I guess I’ll keep her... 😂🤣

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Originally posted by @Matt Popilek:

@Jaredith Mize - When you schedule another trip to KC for work schedule a meet up. Send me an email as I am better at responding to that then my BP account. If you can carve out sometime while here we could take a quick tour of KC, and I can show you where I invest, and what that looks like for JV opportunities.

Sounds great! I'll be in touch.

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Originally posted by @Todd Dexheimer:

@Jaredith Mize go big as fast as you can. With that said, starting with a few 1-4 unit buildings is not a bad idea, while also furthering your education and start partnering with experienced investors.

We are towards the top of the market cycle, so be sure that you are being conservative with your underwriting and basing all of your purchasing on cash flow and not appreciation.

I recently did an apartment investing series on Pillars of Wealth Creation podcast that you can check out. Also, check out this blog as well: https://www.biggerpockets.com/blogs/10145/70092-ge...

Thank you for the pointers, Todd! I will definitely check out those resources. I am starting now, but hoping to get myself in a position to really strike hard when the market swings the other way. Cash flow is definitely what I am focused on!

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Originally posted by @Tom S.:

@Jaredith Mize Great to hear on the goals Jaredith! As others have mentioned, a lot of it depends on the level of risk you're willing to tolerate.

As a thought, you could start with a few four-plexes. What's nice is that you get the economies of scale, but it's still residential financing. At 5 units +, you switch to commercial financing which means higher rates, shorter terms, and more down payment. The bank may also look to your experience in approving that deal.

So that's my 2 cents. I started with SFH, then duplexes, then four-plexes, before moving to bigger units and commercial loans.

Good luck!

- Tom

Thank you for the tips! The COO at the company I work for is a real estate investor and he started out with a few duplexes and four-plexes before moving on to some 8 unit buildings with commercial financing. I think that's what I'm leaning toward doing, as well.

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Originally posted by @Matt Popilek:

This is a good question, and a truly difficult one to answer since each of us have a different level of risk acceptance.

I would say working with you wife on the front end will make a much happier marriage in the long run.

Also partners can be tricky. I would say make sure your goals align with the long term goals and plan for exit if any. Also make sure each of you have an easy out clause in case someone wants to bail. If someone bails make sure if a stranger gets involved on the sale they have no voting rights or power to do anything outside collect an income check.

Grant Cardone says 16+ at a time. I personally started with 14. My second buy was a 22 unit. If I had to do it over I would do 20+ and I would have passed on the 14. The cash flow is significantly better on my 22 unit building.

Also my 14 came as 2 seven plexs where my 22 came as one building. I really like the 22 under 1 roof. Commercial flat roofs cost a lot. I paid 36k for the 14 and 20k for the 22 unit with TPO replacements.

1 roof, 1 plumbing system, 1 hot water system, 1 exterior electrical panel, etc. This makes for lower renovation costs, and lower long term maintenance.

I dont buy SFR as a hold for exactly same reason...two many systems to keep up for my liking.

Best of Luck, and if you want to Buy in Kansas City I am always open to JV options.

Matt

Thanks for the feedback, Matt! I agree with your reasoning behind the larger properties, but like you said, the happy marriage has to come first. I'm trying to get her to read Rich Dad, Poor Dad and listen to the BP Podcast, in hopes that she will experience the same shift in mindset that I did.

Also, Kansas City is definitely on my short list. I visit there for work fairly often and it seems like a good market for cash flow, as well as a city that I would like to have an excuse to visit periodically. Any excuse to go to Joe's or Q39 for BBQ is good with me!

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Originally posted by @Account Closed:

Definitely find someone in your market to learn from. Partner with them if you can, keep in mind, partners need to have dissimilar skill sets/ strengths. Example: two broke carpenters still can’t build a house without a money guy.

Larger the property the more amplified results generally are. Good, and bad. Example: swing as hard as you can off the tee, you’ll either run it 350 yards or leave your shoes behind when you wiff on it.

Cheers

Thank you for the input, Kris! I like the golf analogy; it makes perfect sense. I think we just have to find a middle ground, because I would swing for the pin every time and my wife would play it safe. I'm sure there's a happy medium.

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I have identified my "why" and set several mid to long-term goals, but I'm suffering from analysis paralysis. I want to build a portfolio of several hundred units of B to C class multi-family properties. I'm 34 years old and would like to retire by 40 (I'll still work every day, but I want to leave my day job).

My wife is extremely risk averse and generally pessimistic regarding real estate. We are working on a deal to acquire a duplex and a small single-family house. That is on track to happen, regardless. The question is what to do next.

My thought is to partner up with some more experienced investor friends to raise capital for a bigger deal. She feels more comfortable buying single-family properties, one at a time. In my mind, bigger deals would create economies of scale and make everything easier and more cost-effective. In her mind, bigger properties = bigger risk.

Am I on the right track or am I being over-zealous?

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All Forum Posts by: Jaredith Mize

Jaredith Mize has started 3 posts and replied 13 times.

Post: Overwhelmed Newbie: First Major Rehab and Acquiring 3rd Property!

Post: Overwhelmed Newbie: First Major Rehab and Acquiring 3rd Property!

Post: Start small or go big? Where to start in multi-family investing.

Post: Start small or go big? Where to start in multi-family investing.

Post: Start small or go big? Where to start in multi-family investing.

Post: Start small or go big? Where to start in multi-family investing.

Post: Start small or go big? Where to start in multi-family investing.

Post: Start small or go big? Where to start in multi-family investing.

Post: Start small or go big? Where to start in multi-family investing.

Post: Start small or go big? Where to start in multi-family investing.