He got H1B in 1997 in his 40s and brought his whole family over (wife and 4 kids) and got laid off within 1 month. Then had to find another job ASAP. Having to care and provide for 5 people almost drove him insane and severe mental health issues. He went on to get laid off several times. We spent another 12 years paycheck to paycheck until 2009 he finally got green card and a stable job. We also finally had enough money to buy a house. Right then the housing market had collapsed. We were living in Phoenix where four plex condos were selling for $100,000. Over the next 3 years my dad bought 4 four plexes and renovated them, selling them for $150,000 each (those four plexes are worth $1,000,000 each now). He then went on to buy and sell several properties, eventually settling on the following portfolio: 5000 sq ft house: bought for $450,000 and now worth $2,000,000. He bought it using an ARM loan and now the property is completely paid off. The house is listed on Airbnb and generates $250,000+ in revenue a year. The ARM loan was extremely risky and could’ve made or broken their whole business but they took the risk and paid it off eventually. 2100 sq ft house: bought for $100,000 and sold it for $450,000 to me. Was paid off and worth $500,000. 1800 sq fr house: bought for $200,000 worth $450,000 now. Paid off and rented out. Four plex in old town Scottsdale: bought for $150,000 now worth $1,000,000. Rented out each portion for $2000. Has a $200,000 ARM loan left that’ll be paid off after I have bought the 2100 sq ft house. They recently just bought a $1,000,000 new build house that they’re moving into. Has a $700,000 loan on it and their journey continues. My dad is about to retire in a few months. He plans to live off the rental income, Airbnb income, social security, and $200,000 in 401k. Moral of the story is, life is long. You’ll have several ups and downs in life. My dad didn’t break into all this until his 50s. Even his 40s he was almost dead broke struggling to find a job on h1b. So don’t get caught up on bad times. They are temporary. There will be better days ahead. Prosper ahead!
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Inspiring. Kudos yo your dad 👨
The BS meter is flashing bright red on this one. Everything was good till he said rental property in Phoenix generating $1000/day for atleast 250 days.
It’s a 5000 sqft mansion. People book it for $15,000 a week on an average week. During super bowl weekend they paid $30,000 for a few days stay.
Also the “came in 1997, got GC in 2009”. Even if OP’s dad had his GC filed later into his H1B, say 2001; in those days wait times for Indians were like 2-3 years.
So, the answer to your title is “buy real estate just before a period of peerless price growth”.
In hindsight it looks like a smart move but a lot of people were calling him stupid to buy property in Phoenix in 2009 at the time.
I’m not saying it was smart or stupid. I’m saying it was a gamble on real estate and the majority of the appreciation is not because of your father’s actions. If your father hadn’t done absolutely anything with the units he’d have sat on 4 million instead of 5.
Reminder that honest work and dedication can get you success. It’s the people who remain focused during times of crisis who thrive. Applaud your dad’s hustle and perhaps the biggest accomplishment of his is life was to set an example for you. Thank you for sharing this.
Reminder to become a member of the asset class and let other people make your money for you via paying rent, instead of working for money yourself
Agree. Buffet once said, “If you don’t find a way to make money while you sleep, you will work until you die”.
Great post 👍👍
TL;DR he got lucky
Luck is always a factor but it is not everything, he was lucky and he was prepared to act when the opportunity came.
Great success story, thank you for sharing it.
Where did he get the upfront capital?
For a four plex worth $100,000 the up front capital would be $20,000 for a down payment.
Then he didn’t really live paycheck to paycheck if he had saved up 20k. Good for your dad for making it, but those that are literally living paycheck to paycheck just don’t have the income to save for a house. Also housing is much more expensive nowadays.