All Forum Posts by: Rusty Thompson

@Jonathan F.

I acquired them in a couple different ways: SFR1= MLS, It was the house first house I bought to live in.(11/06) SFR2 = Auction via Williams & Williams. (08/11) SFR3 & SFR4 = MLS, Short Sale.(09/11) 8PLEX = MLS.(09/13) SFR5= Auction via Hubzu.(09/14) My buying criteria is pretty strict. B+ or better neighborhood for SFR's. They don't come up very often so I look every day. If a deal comes up I find a way to make it happen.

@Hattie Dizmond 

Thank you very much. It was a lot of work. I invested every single cent I have made over the last three years to get where I am now. Things might get easier as the economy of scale comes into effect, but I can tell you right now that my 8PLEX takes more time than my 5 SFR's. I think Singles & Duplexes are perfect for a One man show with a full time job.

@Kirk R. 

My cash flow is probably closet to 3200$ after expenses & repair fund. My living expenses are really low. As I said above, no family & I have been "house hacking" to use the phrase coined by @Brandon Turner . So essentially no living expenses. 

I think my current goal is going to be focus on creating a solid core & getting all the PMCS finished on my properties over the next year. Then I can decide what I am going to do from there. I know deals are drying up around here, so moving forward I am going to have to start focusing on " working on the business, not working in my business". Because unless the increases in real estate prices are the "rubber band effect", things are going to get harder around here.

Thanks @Jeff S. For the Bump. I haven't gotten to 30 as of yet, but managing 13 is almost a full part time Job. I imagine the 15 is about the limit to self manage myself while working a full time job. Though it could just be me. 15 SFR's would be a lot easier. But with the 8 apartments.... I find myself over there a couple times a month. If anyone self manages more than 15 and works a full time job feel free to speak up.

Part of the reason I haven't hired management as of yet is that it wasn't enough work to make it worth it until recently. Maybe its time to rethink that. I would like to be doing RE full in 2 years. I guess it is probably time to focus on building up my reserve & stabilizing my investments.

Demand is high in Salem. Higher in surrounding areas like Silverton, Sublimity & Stayton. Ive lived in Albany & Lebanon & both seem to have decent rental markets. Independence is right between Monmouth & Salem. Though I don't know its market personally, I think it may have potential. If your curious about my properties check outout. My Thread

Have you considered looking a little outside of Portland? I'm investing in Salem & doing fairly well. Numbers def. make a lot more sense than up there. Dallas, Albany, Lebanon also have affordable properties. We aren't drowning in great deals. But with patience & perseverance they are there. 

I would say if you are willing to look so far away. Maybe look in some of the more Rural locations around Oregon & Washington for deals.

Some of you know me, some of you don't. I've been on BP for 3 years & went to the summit. I'm not as active on BP as I would like to be, but life conspires. That being said. It has been a busy 3 years for me & the things that I have learned from BP have allowed me to build a nice little B&H portfolio. Jeff S. & I were discussing my investing via private message & I decided I should make our private discussion public. I am looking for some advice on where to go from here. 

My original business plan was to acquire enough rentals by time I turned 35 to retire from my 9-5 and invest full time, I'm 32 now. For the last 3 years (off & on) I have rehabbed, rented, bought & saved. And I have done well. Now I am reexamining my goals and trying to decide on the best way to move forward. So I am looking for some advice on the most efficient way to move forward.

Some rough numbers:

My portfolio

SFR1 2/1 PITI 620$m Rent 795$m Exps. 20$m [email protected] Value 95k

SFR2 3/2 PITI 720$m Rent 1195$m Exps. 0 [email protected] Value160k

SFR3 4/2 PITI 840$m Rent 1195$m Exps. 120$m [email protected] Value180k

SFR4 3/1 PITI * Rent 900$m Exps. 100$m Owe *

8Plex 13/8 PITI 1420m Rent 5000$m Exps. 500$m Owe 142k @ 9%** ValueIDk

SFR5 3/2 PITI 1100$m Rent 1200$m Exps. 300$m Owe 106k @ 9%** Value180k

Notes:

* Loan pays for both SFR3 & 4

** Hard money 5 year balloon loans. 8plex has 4 years remaining. SFR5 has 5 years.

I just purchased SFR5 last month w/ a 30k$ repair escrow that I will begin remodeling next spring. I am currently renting out the rooms to cover the holding costs.

About me:

I am currently single. I have no living expenses because I live in the apartment attached to the shop on SFR5. I have been "house hacking" since I started this and have not had living expenses for the last 3 years that were not directly associated with expanding my portfolio. I don't have any other debt than my RE Loans. I am not planning to stop "house hacking" in the near future. When I started I had just gotten a raise  to 37k from 31k. Last year I received a raise to 52k.  

I was pretty much doing all the work myself (Landlording, Repairing & Rehabbing) until just a couple months ago. I hired a guy recently to help out with the Rehabbing. I still work 80hr weeks, but things are getting done a lot quicker than they have in the past. 

I am open to all suggestions & don't be afraid to ask anything. 

It will take at least two months to grow a glorious beard.

Mixed drinks....

Just kidding

I agree with Sharad. The more organized I am the less stress I have.

Zoning will not usually allow you to turn a 4-plex into a 8-plex. Three bedrooms is the most sought after floor plan in my area.

Being a fairly new landlord (3 years) and having just gotten into my first multi-family. I have found myself making concessions for a certain kind of tenant more than any other. I seem to give much more leeway to the 50 and over crowd. Maybe its because they are my parents age, maybe its because I see the lack of options they have at the end of their hire able years, but I have been taken in twice by older tenants who have fallen on hard times to my detriment. Know that I am aware of my blind spot I will be more careful of it in the future.

What I wonder is, am I the only one. Does anyone else find themselves giving more leeway to a particular demographic?

I had a similar situation where the tittle company didn't catch a year of unpaid taxes. Contacted them and they paid it promptly.