Back in the Game, just closed 2 three families

General Real Estate Investing
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I haven’t posted in a while, but to update you: I bought a 3 fam in 2000, lived there for 5 years and saved money and built a home in '05. In '09 I miraculously got a HELOC on my 3 fam (NOO!!!) and went out and bought 2 foreclosed two fams. Using 50% rule (thanks to this site), I am clearing $115. per unit on one property and $135 a unit per month on the other - these are after repair #s. I refied both homes (everything done thru local bank that keeps loans in-house) and got all my HELOC money back out. I then went out and bought 2 three fams from the same unhappy partnership (they just wanted to get out) with just one apt to be rented and only minimal repairs needed. Both new props will generate a minimum of $115. per unit once everything shakes out.

So in the course of 1 year I have purchased four properties and put approx $200,000 in equity in the “bank”. My goal is to do cash out refi’s on both new props and buy at least one more three fam this year. I want to get up to 10 properties within the next two years.

The best part of this is that I have only used the banks money to do this!!! (Well, maybe 2-5K came out of my pocket)

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Congratulations!! :beer

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Kevin,
Terrific story! You just keep marching ahead. You will get to the 10 properties I am sure. How much of a cash reserve account are you growing for big repairs, if you don’t mind my asking?

Furnishedowner

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furnished, reserves are low right now due the DP $ I had to put down - prob only $5k now. I will be putting all profits into savings in the coming months. $20k in reserves for 5 props should be enough. I do have a low six figure regular job to carry my regular expenses, with an addl 10k in personal savings. I am trying to keep personal and business finances separate.

thanks for the congrats. It hasn’t been as easy as I made it sound. Most here know the hurtles that need to be jumped to get deals done. I’m up for the challenges on the road ahead.

Newbies- READ READ READ this site. You do not need to buy a single thing, it’s all free here!!!
People here are your mentors.

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Thanks for the words of encouragement Kev…and congrats…and i do read as much as i can …thanks…
oh yes by the way I am a newbie…with three house,working on four…
I also look to have ten some day…before i retire in four years…but really want to learn how to wholesale…so any words of encouragement…books, web sites…on wholesaling…would be great…
Thank You…
Everyone…

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Coltrane, At this point I’m going to stick with investing in MFs (for it is what I know best). I have no info/knowledge to pass on to you about wholesaling etc. Good luck with all of your endeavors. You are investing at the right time and if we play our cards right, we should be able live life more comfortably in a few years.

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I love success stories :slight_smile: Congrats!