May 2021 - Portfolio Update
May was an unexpectedly busy month of transactions...we officially exited one of my larger multifamily properties (Property #5) which locked in a nice 50% return on my money in less than 2 years. Another multifamily property (Property #4) is under contract to be sold and should close in July...fingers crossed!
On the personal portfolio side of things (properties 1-3), all of my units are rented and occupied. I have an expiring lease in June, BUT it just got renewed!
More details below!
My First Property
I bought this single family house in December of 2016 and SOLD it in May of 2018. 2 Bed/1 Bath in a "C" Class neighborhood in Indianapolis, Indiana. NO MAY INCOME. See how it performed HERE.
If you're looking to buy your first rental property and want to jumpstart your education on the processes, procedures, and strategies, check out the new ebook I just launched.
My Second Property
I bought this single family house in March of 2018 in Indianapolis, Indiana. 2 Bed/1 Bath in a "B" Class neighborhood. It's currently rented on a newly renewed 12-month lease.
I had a very clean and smooth month with this property. No repairs or maintenance issues. Full cash flow received! I had an expiring lease in June of 2021, but my tenant just renewed for another 12 months. Boom!
Gross Rents: $995
Property Taxes: $212.32
Property Management: $89.55
Repairs and Maintenance: $0
Income ($995) - Expenses ($704.79) = $290.21
Cash Flow from My Second Property: $290.21
My Third Property
I bought this duplex in July of 2018 in Indianapolis, Indiana. Both units are 2 Bed/1 Bath in a "B" Class neighborhood. Both units are on 24-month leases.
This property has been running smooth for a couple of months and I'm super glad after it had a rough 2020. Honestly, I was a little shocked when BOTH of my tenants paid rent on the 1st of the month...they're usually a little late. Let's just say, it was a pleasant surprise.
Gross rent from Unit 1: $875
Gross rent from Unit 2: $875
Property Taxes: $221
Property Management fee: $175
Income ($1,750) - Expenses ($1,168.74) = $581.26
Cash Flow from My Third Property: $581.26
My Fourth Property
This is an 80-unit apartment complex in Louisville that I invested in passively through a company called Holdfolio. Unfortunately, things haven't gone as smooth as expected in this deal and Holdfolio is not hitting their underwritten timelines or budgets. It was acquired for $2.25 million back in 2018 and we invested another $1 million into it as a group for renovations.
This is a completely passive investment for me as a Limited Partner and I have some BIG NEWS. This property is under contract to be sold. If you've been following me for awhile, you'll know this has been a headache of a property. Unexpected expenses, low rent collections, and poor management have plagued this passive investment run by Holdfolio. The best option is to sell and at least lock in a small return...fortunately this property is under contract to be sold with closing scheduled for July. If all goes according to plan and we sell this property I should receive a 15% return on my money in 2.5 years. Not the greatest...but could be a lot worse!
Below is the total ROI since my investment start date of October 2018:
Total ROI since investing start date 10/11/18: 1.49%
My Fifth Property
This is a 164-unit apartment complex in Phoenix that I invested in passively with trusted partners. It was acquired for $19.75 million and we're investing an additional $2.5 million into it.
I got some more BIG NEWS...I've been keeping it a little "hush hush" the past couple of months, but this property was officially sold and we exited this investment. I got a total of 50% return on my money in less than 2 years (22 months to be exact) and I couldn't be happier with the outcome. This was a deal I was confident getting in back in 2019 because I found amazing and experienced partners to work with. Finding the right people to work with where you can trust them with your money isn't easy; it takes time and commitment. Develop those relationships and align yourself with people that are more experienced than yourself! That's the biggest business and money hack :)
Total ROI on this investment (exited in 2021): 50%
My Sixth Property
This is an 94-unit apartment complex in Phoenix that a group of partners and I purchased and closed on at the end of November 2019. It was acquired for $10.3 million and we're investing another $3 million into renovations.
As a member of the General Partner team, I flew out to Phoenix multiple times running due diligence, checking out comps, vetting the business plan/strategy, and connecting with investors.
This property has now been under my partners' and my control for about a year now and we're really starting to see the fruits of our labor. All roofs were replaced, exterior is done, and the pool is completely renovated. This was my first property as a General Partners and it's been one of the biggest learning experiences I've ever been part of.
My Seventh Property
This is my newest acquisition and it's my first in-state investment. What's cool is that I can literally drive from my home to visit this property in under an hour.
This is an 12-unit apartment complex in San Jose, CA that a group of partners and I purchased and closed on at the end of October 2020. It was acquired for $3 million and we're investing another $300,000 into it.
Current rents are about $1,200 per unit right now and after renovation we anticipate pushing them up to $2,100 per month. Value add baby!
With this being my first in-state investment, I decided to take a chance and give this whole California investing thing a try. I'm working with some amazing local partners on this deal. No way I could pass it up! I also stopped by the property a couple of weeks ago and if you take a look at the photos above, you'll see 3 blue doors representing the units that have been vacated and are being renovated. Value add!
If you are interested in learning more about getting involved in deals like this and investing you can reach out to me directly HERE.
It was a busy month with a property sale and another property under contract to sell. As far as my personal portfolio goes, everything was simple, smooth, and full of cash flow!
Best of luck everyone and reach out if you ever have any questions!
***VERY IMPORTANT NOTE: even if I'm bringing in positive cash flow after all my expenses are paid, I'M NOT TOUCHING any of it! This income goes toward my next investment and any future expenses. I have a day job and side hustles to cover my lifestyle :)
If I ever get to the point where I actually want to take the cash flow, I would still only take about half of it and save the remainder for future expenses. This is SUPER IMPORTANT! ALWAYS factor in future vacancy/repair/maintenance expenses. Make sure you know how to properly calculate cash flow HERE.
Let me know if you have any questions!
P.S. Take a look at the new Youtube channel I just started with my friend: REAL ESTATE INVESTING REAL TALK.
Leave a Reply.