Half Way Through 2015- A Look At Our Investing Goals For The Year

 

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Wow!  It's hard to believe that we are already into July of 2015.  I feel like it was just yesterday that Kirk and I sat down and made our goals for 2015 both personal and investing.  This year was the first time that I decided to share those goals with the RentalRookie Community and I thought it only fitting that I stop and take some time to reflect on what we've done and what we still have left to accomplish this year.

Our investing goals for 2015, which were explained in detail in the article Our 3 Investing Goals for 2015 & What I'm Nervous About are:

  1. Buy a Multi-Unit Property
  2. Create Partnerships for Investing
  3. Have 8 Units In Our Portfolio by 2016

I'm excited to report that we've reached one of the goals, almost reached the 2nd and are well on our way to goal number 3.

So here are the details.

 

Goal #1 Buy a Multi-Unit Property

Wahooo!!! We accomplished our first investing goal for 2015.  While this has been something that we've thrown around in conversation for a while. We decided to take the plunge this year and get serious about adding this to our portfolio and we did it.  In April we bought our first duplex with one unit rented and one unit vacant.  I'd be lying if I said I wasn't nervous about the purchase because it was in a brand new area that we'd never invested in and it was a new type of property.

But we bit the bullet and closed on the property just days before heading out of town for a destination wedding.  You can find out a bunch of the details on the process of buying this unit and the actual closing of the property on the following podcast episodes:

In Show 20 we talked a lot about being nervous to buy in a new area when we didn't know much about the rental market.  Yes, we did our homework about researching local industry and talked to real estate agents about the type of rental market that is present in the town.  But at the end of the day we were nervous. Remember, it is our money on the line!

We actually were shocked at how much interest we had in our one vacant unit and had the unit rented out shortly after we returned from the wedding we attended just after the closing.  We are now actually looking to potentially buy another property in the same town to continue to grow our portfolio.

 

Goal #2 Create Partnerships for Investing

We've been SO CLOSE  to reaching this goal so far this year.  Just in the last month or so we actually were under contract on a property, a student rental in our town, and had agreed to bring in some family as partners on the deal.  They agreed to wanting to work on the deal with us so we were excited to be able to have this opportunity.  Then, the home inspection happened and we learned about some unexpected issues and the fact that the property was being illegally rented out to more people than it was zoned for.  As a result, the numbers were just not as great when you actually followed the correct zoning laws and we refused to be unethical and walked away from the deal. Find out more about whether you should break your ethics for money on Show025: 'The Shady Student Rental': How We Almost Bought an Illegally Occupied Property.

However, despite this deal not working out I'm excited to know that we have family who want to invest with us and I hope that by the end of 2015 we will have closed on our first deal and our first partnership.

 

Goal #3 Have 8 Units In Our Portfolio by 2016

We are on our way to reaching this goal.  When we started 2015 we had four units that were solely rental properties.  So our goal for 2015 is to essentially double our portfolio.  Now that we have properties that are cash flowing and we're saving the monthly cash flow we want to reinvest the money back into growing our portfolio.

Now, with the purchase of our duplex we have 6 units and still have 6 months to acquire two more units.  I absolutely think that it is achievable and I am excited to see what is in store for us throughout the rest of 2016.

I hope that you take some time to stop and reflect on your own goals for 2015 whether they be professional or personal.  I truly believe that it's important to realign yourself with your vision at the beginning of the year so that you are better able to reach the goals you've set forth for yourself.

 

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