Building Our Rental Portfolio


8 comments

While this website is predominantly about our house flipping business, now that we’re starting to build our rental portfolio, I wanted to provide insight into that facet of the business as well. Below, you can follow along with our building our rental portfolio…


Rental #1: The First Rental

Front of House Detailed Overview of this project
Before Pictures
Rental Pictures
Track Financials & ROI





8 responses to “Building Our Rental Portfolio”

  1. Steven Graham says:

    This is my endgame after wholesaling my way to flipping to rental portfolio….Do you do your own management?
    At what point did you (need to) hire/retain R.E Atty? Accountant?

  2. J Scott says:

    Steven –

    We hire out management for our rentals. As for accountant and attorney, we’ve done about 150 flips at this point, so we’ve had those guys on our team for a long time now.

  3. Jesse Roth says:

    Looking through your first 50 flips, it appears you bought your first three properties prior to closing and reaping any profits. Just curious how you financed the first 3 flips, assuming the first 3 weren’t “all cash”? Also, was the same lender used for all three and how difficult was it to obtain financing at this stage of your business?

    Thanks for the wealth of info you’ve provided to date. It’s been very helpful.

  4. J Scott says:

    Hi Jesse,

    My first project was purchased for cash. My second project was purchased using a conventional loan (which I don’t recommend doing). My third project was purchased using a portfolio loan, which is one of my preferred means of financing these days. For a whole lot more information about financing, check out my books…

  5. barbara andros says:

    Where would you say are the best towns in Morris County, New Jersey to flip houses?

    Thanks,
    Barb

  6. Ryan Huggins says:

    This is my end game as well, to build up my rental portfolio. Best of luck to you!

  7. Allan says:

    I recently listened to a podcast with you, it was very educational. I was wondering if you could tell me the percentage you pay to your project manager. I found this to be a very interesting concept. Admittedly, I have just started looking at your blog but if you were looking at making 20 000 on a flip how much of that profit do you end up paying to your team?

    Thanks for your help!

    Al

  8. J Scott says:

    Hi Allan,

    It depends on the area and what the cost of living in the area is and how well you’re trying to pay him/her (I like to pay my PMs well). But, my longest-term project manager (in Atlanta) gets $2000/month plus 15% of the profits. That gets his total salary to where I want it to be. If we were to start doing fewer projects, I’d probably raise his fixed salary to compensate.

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