All Forum Posts by: Jesse Scroggins

Its funny you say that about your dad, my dad can do anything with a house. So I planned on learning from him and doing the same. So I love and agree with your plan and that was ideal ! With my family dynamic he is pretty tied up with my brother and sister so its worth it to me to hire out. Plus when we are able to work on things he is so so slow haha.. extremely thorough but i'm trying to grow a 7 figure business so any down time drives me crazy.  That's also big time that your dad has SF's. Major information and advice to help save or limit mistakes, early on especially !

yeah I know your exactly right with my W-2 job really helping speed everything up. To be completely honest I had to sell it to my wife that way. She is a dental hygienist and makes great money but is currently still paying off her student loans. She was like our budget is great right now don't mess it up !!!  She doesn't really desire more money but loves the idea of passive income and not working as much especially once we have kids. It also help after seeing that "easy" 1750 in cash come in each month in the business account. When the time comes for a down payment she'll be ready !! 

10 doors by 30 has been my goal over the last year. The vacancies have put me behind a little bit but if i can buy 3 in the early part of next year. Then ill need another 3 before February of 2017.  !!! might be a stretch goal but i'm going for it.

How to answer that...

         I would say doing good so far, I still have that over excitement level from the potential hold RE offers. So most things that have came up i'm just like o'well. I would honestly say the biggest surprise so far is the lack of calls. You always hear of that tenant that calls you 2 or 3 times a week so was expecting more along those lines. Mine are on the lower end of the spectrum. You hear different theory's on whether low end rentals product more or less phone calls, but I think it overwhelmingly comes down to the tenants personality. They virtually never called for anything.

I'll start off with saying I purchased the quad with the tenants already in place. I purchased from an a local investor/mentor and all but one of the tenants had been there for 5+ years. Long story short one tenant purchased a home and moved out, and the other one is gone for good. Policed knocked down the door and arrested him. I never heard a word until several days later when another tenant called and asked me about it. So that was a learning experience to say the least.

I'm looking at hiring a local Property Management team. The cash flow of the property is great so it works. I know starting out every penny would be better spent re-investing instead of paying a PM but working full time, I would rather spend my time looking for the next deal and I'm not as handy as a thought I was haha !! I'm still playing with the numbers on rather or not to hire one but def leaning toward it. I would say purchasing the quad first is the only way I would be able to do that so very grateful for that.

My plan is to simply save up for the next down payment. The investor I bought these from still has 20+ SFH and is older and wanting to sell them off, and as my "mentor" he would love to sell them to me. I'll probably cherry pick the ones I want. With the quad he is carrying the note at 0% interest for 6 years. Even at 72 Months it cash flows about 750 a month. So i will more than likely try and get the same deal on my next purchase from him and perhaps purchase a package deal of 2 or 3 within the next 6 to 12 months... depending on how the PM team goes and how much cash I can have saved up. I keep my W-2 and business money COMLETELY separate. So there is no additional money going to the business other than cash flow from profits monthly. With that being said when 12 months comes and i'm short on a down payment I have a little money stashed that I would be willing to use.

so to answer your question in short was it has hard as I thought... no not at all, its great !!!

7 figures by 30 sounds great and your on your way, i'll shoot for 35 lol !!

@Rosston Smith

Love it man !! Starting with the quad really speeds up your snowball effect exponentially when starting out plus starting at 21 is great, sky's the limit.

I really took to your post as we are in a similar situation. Purchased a quad as my first property several months ago. I'm not "house hacking" the property but just getting started as well with a quad. Would love to stay in touch and watch our business/investments grow while challenging and motivating each other !! the only problem is I'm 28 so you will have a few years on me when we both retire in 10 or 15 years !! ha

I'm new to the game but purchased 2 duplexes from a local investor in February.

He certainly required money down which i didn't have at the time. So I took a loan out on my Truck for the 10k down payment. Probably not the best options in most situations, but the properties has more than enough cash flow to pay the extra 250 a month on the truck (down payment) loan. @Cary F.

PM'd

I feel like in my area of Oklahoma we have some great ROI with the lower end of RE.

I recently purchased my first properties. Two duplexes adjacent to each other. I became friends with the owner at the bank I worked at and I feel got a good deal.

I paid 67,500 "turn key" with 1750 in monthly rent 100% occupied which they were.

In a made up world of zero expenses that's only a 31% return. 

But then again if your using a mortgage to leverage your return you could get very close to 30-40% even after expenses where i'm at but again this is on a small scale and lower end RE SFH or plexes.

Thanks Sue!  Yeah they were suppose to be responsible for the pest control but lessened learned lol..  

Jail so looking for some quick advice... Long story short my Tennant got arrested for some sick stuff and if convicted will be gone for a while. 100k bail if that tells you anything.   A warrant was served and the door got kicked in so I would assume the case is pretty solid, especially after talking to the victims family. Anyways it's a duplex and the apartment is infested with roaches and every other insect there is. His family apparently came and got what they wanted but major stuff is left like clothes, couch, fridge ect.  They are all full of roaches.  So my assumption is to give him his 30 days of notice but with it being a duplex it's causing major problems with the other Tennant.  I have exterminator coming tomorrow but would really like to have all the stuff moved out.  Exterminator said I'll be spinning my wheels untill I get the stuff out. I won't be able to meet with him for a while as the jails visiting ours are very limited and I still have a full time job.

Welcome to Tulsa!  I'm not technically from Tulsa but close enough if I need anything it's worth the 30 minute drive!  

Hello bigger pockets!!! 

So just getting started with hold rental properties. I have been researching real estate rental properties over the last couple of years.  I'm a pretty conservative guy and believe in the "if it's to good to be true, it is".  So over those two years i've tried to figure out what the negatives are and why everyone isn't doing rental properties. Long story short I couldn't find a reason not to do real estate, especially hold real estate. I currently work for a bank here in oklahoma and have had the opportunity to talk to many business owners and landlords, from the accidental landlord to the guy who owns 30 single family homes out right and is living off the rental income.  

It's at the bank that I found my first purchase.  A local investor looking to sale off his single family homes due to age, he is over 70 and looking to slow down. He made a list of 10 homes he was willing to sell. We went around to each home and talked about the history of each properties and the current Tennant. The math was a no brainer and bought 2 duplexes from him, purchase price of 67,500 with rent income of 1750 each month total.  He is carrying the note over 7 year with no intrest.  I purchases these February 1st so very new into it. He currently has 25 homes and has been doing this for 30 years. He has really taken me under his wing and we've talked about me buying a large portion of his portfolio when the time comes or whenever I'm financial ready. 

I currently work in management with a Bank here in oklahoma.  I am turning in my 2 weeks tomorrow to start another job in the same town.  I would be lying if I didn't say it was for a few different reasons I'm changing jobs but wanting to focus more on rental properties is one of those reasons. However I can say with full honesty that I would not be taking the job I am if my goal was not to be doing rental properties full time within the next 5 years. I am completely getting out of the banking industry and the 55 hour weeks. In order to work with veteran affairs and a nice 40 hour week with weekends off. Wanting to further my career and looking for opportunities I had to make a decision. I wanted to stay in banking, but it was either the long weeks, school for an MBA, or choose a job that would allow me to focus on my real passion for real estate. The decision was easy once I had my wife on board after the 2 years of continuous planning and walking her through the numbers. In the beginning she thought I was crazy wanting to own 50+ single family homes.  But she is fully on board and supportive.  I've since looked into plexes and apartments and will continue to evolve as I learn... Still so so new to the game!! 

Really looking forward to becoming an active member and continuing to learn from BP

Thanks!!!