All Forum Posts by: Scott Emsley

Oh bummer! I’ve been waiting for months for this. I’m going to be doing the Virtual Badass Real Estate Expo this Saturday. Would love to connect with you some other time

This year (2020), I started my real estate investing journey. I am scheduled to close on a single-family property in Franklin, KY next week (at the latest). This is my first true investment property. I am also watching the "Financial Independence Blueprint" videos, and developing my own plan. My goal is to purchase Single Family Homes that cash flow $200 per home, and Multi-Family Housing that cash flow $100 per unit. I'm lucky enough to have a career that meets all of my expenses. I'm a local (Fruita, CO) and long-distance (Bowling Green, KY and surrounding) investor. I plan to BRRRR early on in the process, and reinvest all cash flow and equity into more properties. My goal is $10,000 per month in cash flow, which could be accomplished with 100 units.

I'm looking for perspective on "The Stack", especially the latter years. I don't need to "see" the whole journey to take the first "step", I'd just like to talk to someone who is farther along in The Stack to get their perspective. Here's my hypothetical stack:

1. 2020 – One Unit
2. 2021 – Two Units (3 Total)
3. 2022 – Four Units (7 Total)
4. 2023 – Eight Units (15 Total)
5. 2024 – Sixteen Units (31 Total)
6. 2025 – Thirty-Two Units (63 Total)
7. 2026 – Sixty-Four Units (127 Total) *Mission Accomplished*

The first four years seem reasonable. The fifth year seems ambitious. The sixth and seventh years just seem... wow! With this exponential growth, the 5th, 6th and 7th years are the most critical to accomplishing my goal. Is this Stack still possible? Please let me know if you have real experience with this, positive or negative. I know that The Stack is just a guide or framework and life often turns out very differently. But, I just want to hear from experienced others. 

Sorry, Mindy who? @Megan Brooks

I am also looking for that notification

I'm also waiting for the Pro member Virtual Wealth Expo invitations. Any word on that?

@Bob Vollmer you bet! And if you ever want to partner of multifamily, I'm always expanding!

I am looking to connect with other investors in Grand Junction, CO. There used to be a Western Colorado Real Estate Investors (wCAREi) meeting that I attended a few times. However, I think that enthusiasm waned recently, especially during COVID-19. I would like to connect with other investors over coffee. I'm interested in connecting with folks who invest on the Western Slope, but also especially interested in connecting with long-distance investors. 

I am investing both in Fruita, CO and also Kentucky. I'm looking at investing in Tennessee and Ohio. My preferred investment type is multi-family. Feel free to reply to this post or send me a message if you know of any good meetups, you'd like to meet for coffee, or if you'd just like to connect electronically. 

For the meetup, I'm not interested in any kind of paid-product, or paid-meeting. 

@Darius Ogloza @Joseph Back @Andrew Kougl @James Wilcox 

Thanks for the replies, and great suggestions. So I did some more homework as recommended. The HUD Fair Market Rent (FMR) is an exact number pulled directly from the HUD User website, and they allow up to 10% overage, but being conservative in my estimates, I kept the number as-is. This HUD FMR is exclusively for rent only, not for utilities. There is a separate allowance for utilities. This is consistent with the report from two property managers in the area who said that section 8 or not, tenants pay their own utilities, and mow their own lawns in everything other than single-family and duplexes. These properties are C-class properties, and I intend to BRRRR them up to B-class. So, what else am I missing?

I have repeatedly checked the numbers and adjusting for the variable numbers of CapEx, Vacancy, and Repairs/Maintenance I'm getting cash flow between $261 and $310 per door.

@Jason May It's great to hear from you, and glad to see you on here as well! I hope you're doing well. Keep on searching, the deals are out there and often the biggest hurdle is getting started. Tabitha says hi as well :). I'll send you a connection request. 

@Andrew Kougl

Thank you for your willingness to help. The properties are located in Franklin, KY, which is definitely a small town. I agree that it will likely take a long time to sell and that is a good concern. I would like to invest in the nearby Bowling Green, KY, but haven't yet found any deals like this. The cash flow is based on HUD Fair Market Rents, for section 8. It considers exact numbers for PITI and property management; and estimate numbers for vacancy, repairs/maintenance, cap ex. Tenants are responsible for utilities & trash.

The update to my situation is that my investor partner is out due to another obligation. So, I'm on my own. 

That's a great idea on buying one at a time, I hadn't considered that. There are 10 duplexes, and if I buy a "batch" of them, I can only afford 5. But if I bought one or two at a time, fixed it up, then moved to the next one, I'd theoretically be able to buy all 10. 

Great questions! I have an investment property in Colorado where I live, so that diversifies my risk a little. The demand for rentals are average, these will be made available for Section 8, and the local HUD office reports 50+ vouchers needing rentals like this one. The vacancy rate in the area is 5.8% in general, and the property management company I will use is reporting a less than 5% vacancy rate with them. Tenants in this area pay for all services and utilities themselves, but it is very affordable compared to national averages.