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How We Acquired 22 Rental Units in 18 Months for Just $6,193

My business partner and I achieved an incredible milestone: acquiring 22 rental units in just 18 months for a mere $6,193 out of pocket. In this article, I’ll break down exactly how we did it, property by property, so you can replicate our strategy if you choose. We own a six-unit apartment building, a five-unit apartment building, a four-unit apartment building, and several other properties—100% owned by just the two of us, with no other investors or syndication involved. Here’s the step-by-step process we used to build our portfolio with minimal upfront capital.

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Property 1: Two-Unit Property ($88,250)

Our first acquisition was a two-unit property, found through an absentee owner list from PropStream, a platform that provides property owner information for investors and agents. An absentee owner list targets owners who don’t live in the property, often tired landlords or those who’ve neglected their assets. We uploaded the list to DirectSkip.com to obtain contact information, then transferred it to BatchDialer, an automated dialing system. We hired a cold caller to contact the owners, and one lead turned into an appointment.

My partner visited the property, and after negotiations, we agreed on a purchase price of $88,250. The deal was a game-changer: we secured 100% financing for the purchase price, rehab costs, and even some closing costs. Our out-of-pocket cost was just $520.24. We invested $15,000 in rehab, and the property appraised for $160,000—a fantastic start.

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Property 2: Five-Unit Apartment Building ($165,000)

Just 17 days later, we purchased a five-unit commercial apartment building for $165,000. Using the same strategy, we pulled an absentee owner list from PropStream, but this time we texted the list instead of calling. The seller responded, identifying as a “tired landlord” ready to sell. Initially skeptical, I visited the property, met the tenants, and confirmed the seller’s seriousness. He was an older self-managing landlord who wanted out.

After consulting our mentor, who called it a “home run,” we locked in the $165,000 price. With 100% financing, our closing costs were only $212.23. We invested $65,000 in rehab, and the property appraised for an astonishing $650,000, proving the power of strategic acquisitions.

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Property 3: Single-Family Home ($60,000)

Next, we acquired a five-bedroom, one-bath single-family home, initially intended for a fix-and-flip. We sourced this deal from a pre-foreclosure list on PropStream, following the same process of skip-tracing and cold calling. The seller, familiar from local real estate meetups, had rapport with us, which helped. However, he initially demanded a high price. After walking through the property and analyzing comps, we negotiated down to $60,000.

With 100% financing, our out-of-pocket cost was $0—in fact, we walked away with a $6,193 check at closing. We invested $30,000 in rehab, but when we listed it, we realized it was a renter’s market, not a buyer’s market. The property appraised for $145,000, so we decided to keep it as a rental.

Property 4: Two-Unit Property ($78,000)

Our next purchase was another two-unit property, acquired through texting an absentee owner list. I visited with my contractors, and we negotiated a purchase price of $78,000. With 100% financing, our closing costs were $0, and we received a $181.71 check at closing. We invested $25,000 in rehab, and the property appraised for $186,000. This deal reinforced how small savings—like skipping a few months of Starbucks—could fund a property purchase.

Property 5: Four-Unit Apartment Building ($215,000)

The four-unit apartment building was our best location yet. Using the same absentee owner strategy, our cold caller secured a lead, and my partner visited the property. The seller wanted $250,000, but with low rents and full occupancy, we negotiated to $215,000. We secured 100% financing, but with only $300 in our business account, we needed $3,835.66 for closing costs. A friend covered the costs for a small fee, which we repaid after refinancing.

We invested $30,000 in rehab, and the property appraised for $430,000. The refinance allowed us to cash out $63,558 tax-free, effectively covering the costs of all our properties.

Property 6: Six-Unit Apartment Building ($362,000)

Our six-unit commercial building was a tougher deal. The seller, a tired landlord who preferred flipping, demanded $350,000. We pulled an absentee owner list, cold-called, and visited the property. Initially, our numbers required a purchase price below $200,000, but the seller wouldn’t budge. Months later, lower interest rates allowed us to meet his price, closing at $362,000 (including a $7,000 spread for our wholesale company).

With 100% financing, our out-of-pocket cost was $0, and we received a $3,948 check at closing. We budgeted $40,000 for rehab, and the property is projected to appraise for $620,000 once renovations and tenant placement are complete.

Property 7: Two-Unit Property ($160,000)

Our final acquisition was another two-unit property from an out-of-state owner in Maryland. Found via cold calling an absentee owner list, this deal took longer due to a language barrier (the seller’s primary language was Spanish). Our contractor, who speaks Spanish, assisted with communication. We agreed on $160,000, financing only the purchase price and covering minor painting costs out of pocket. Closing costs were $11,913.76—higher than our other deals combined, but still a win for a vacant property ready for tenants.

The Strategy: Key Takeaways

Our success hinged on three pillars:

1. Sourcing Deals: We consistently used PropStream’s absentee owner and pre-foreclosure lists, skip-traced through DirectSkip.com, and automated outreach with BatchDialer.

2. 100% Financing: Building relationships with private money lenders allowed us to secure full financing for most purchases and rehabs, minimizing out-of-pocket costs.

3. Negotiation and Persistence: From negotiating with sellers to following up when interest rates shifted, persistence and data-driven offers were critical.

A Word of Caution

Scaling to 22 units in 18 months sounds glamorous, but it’s not without challenges. Rapid expansion requires strong systems, reliable contractors, and careful financial management. If you’re considering this path, ensure you’re prepared for the operational demands. I’ve shared more on this in a separate video about why I regret buying these units—check it out for a balanced perspective.

By leveraging strategic sourcing, creative financing, and persistent negotiation, we built a 22-unit portfolio for just $6,193 out of pocket. With refinances, we effectively acquired these properties for $0. This approach is replicable if you build relationships with lenders, use data-driven tools, and stay committed to the process. Happy investing!

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