All Forum Posts by: Matt Himes

@Dustin Hood. how did I retire at 33?

At 25 my dad, 2 brothers and I started a construction and drilling company. We built it up and hired our first employee after 18 months or so. 30 more employees and a merger later we were burned out and ready to get out. In retrospect we all worked far too much in the business and not enough on the business. through saving over the 8 years and the proceeds of the sale we are all fi now, though none of us seem fit for conventional retirement.

It’s been 26 months now since I “retired”

@Joe Splitrock I retired on my 33rd birthday. 14 months later I closed on my first real Estate investment. Now I’ve got 8 doors rented and 4 more to rehab.

@Nick Love I do both on different days. I’m more physically energized early and mentally clear and primed for research, paperwork, and critical thinking late in the day.

@Kevin Rea Ive only ever lived in pa, I lived in Philadelphia, Pittsburgh, and several small towns in central and south central pa. I have traveled some and thus far south central pa is where it’s at. My only issues are that it’s 40+ miles to any large stores other than Walmart and groceries. We’re close enough to state college, Pittsburgh, Cumberland, md to enjoy all the stuff that’s lacking in our small town without having all the detractors of the city to deal with on a daily basis.

i retired in may of 2018.
i retired on my 33rd birthday
i was not as secure then as i am now for sure.  i spent a massive amount of time diving into financial independence, which led me to real estate investing and bigger pockets.  i had some skills in home repair, building, renovation but none in actually owning or operating investment properties. i purchased my first rental in july 2019. and will be closing on my second in june 2020

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $350,000
Cash invested: $350,000

nice turnkey single parcel portfolio. 5 unit building, one 2 bedroom sfh and a barn with 2 storage units inside.

What made you interested in investing in this type of deal?

analyzed a bunch of deals, considered the time i had to invest and the projects already on my plate. this seemed like an ideal property for cash flow as well as further development of the 9.5 acre lot. i plan to build 3, fourplexes on this property.

How did you find this deal and how did you negotiate it?

found deal on craigslist. negotiated directly with seller. cash offer and closing in 45 days or after inspection and deed search.

How did you finance this deal?

no financing

How did you add value to the deal?

plan to build more buildings on site with up to 12 more units. increased rents in 2 of the 6 units so far. other 4 are 10% below market rent

What was the outcome?

still own, numbers have been good. will continue to cash flow $2200 per month and develop further in 2021

Lessons learned? Challenges?

turn key brings in lower percentages. benefits are less unscheduled work. took little work and additional cash up front.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

i had the contracts and due diligence done by Gieg realty services in Hollidaysburg, pa.

There seems to be a lack of everything here. There aren’t an abundance of multi family homes but I’ve seen several in the past year. Every seller I have met thus far is older and retiring.  This property has been on the market for almost 3 years. He’s asking 375k but knows he’s asking too much but he hasn’t had a single offer yet according to him and the realtor.

There seems to be a lack of everything here. There aren’t an abundance of multi family homes but I’ve seen several in the past year. Every seller I have met thus far is older and retiring.  This property has been on the market for almost 3 years. He’s asking 375k but knows he’s asking too much but he hasn’t had a single offer yet according to him and the realtor.

Hi there first time posting. I am in need of a little guidance from the community.  
currently have a 5plex and 1 sfh free and clear cash flowing 2500$/month. looking at a 6 unit in Bedford pa.
It is fully rented bringing in 40k/yr after 10% vacancy. total bills and taxes are 22k currently. Roof is 8 years old exterior is brick and in great shape. Interior is in need of major work. Walls and floors are 90% but bathrooms, kitchens and carpets will all need replaced. The only reason people are renting there is the severe lack of rental space in the immediate area. I have yet to make an offer but my thinking is, 

Arv=450k

Repairs/updates=120-150k 

So offer should be 170k? Does that seem right? I have cash for at least what I’m willing to pay for it and a decent emergency fund for myself and the rentals and family who are willing to do lending for the Reno if things move faster than I can cash flow. Also I can do a lot of the work with my wife’s help. Any other questions let me know and thank you for taking the time to help out a noob.