I've heard with the help of a good management company it's very possible to own multiple properties and still maintain a separate full-time job. Is this true and common in the industry?
I work at my day job, but I am not in the real estate industry. There are many people who do it full time. Some have done better than me, others have done worse.
Property management is a very small part of the job, and everything else will require your full time attention if you take it seriously.
I'm looking to hear some good success and even failure stories here.
I was in a similar position to you. I went the standard route of going to college and getting a "good" job. Saved every penny I could and bought a townhouse back when they were cheap. I've bought a few more townhouses since then. Now my equity in them is worth low 8 figures.
I've met someone else who never went to college, worked a crappy job, and did the same thing in a less desirable neighborhood. At 40, he's worth low 8 figures.
What are the biggest challenges you faced?
I wish I had taken real estate more seriously. Honestly, I was too focused on my career.
What are the biggest barriers to growth?
I think you're your own biggest barrier to growth. I never raised any equity, but it sounds like you're planning to do that. There's no reason to limit it to just your 1 friend. Build up some experience and raise more money.
What would you different if you could start again from the beginning?
I don't own any multi-family properties, and the market is just not the same any more. I came across a fantastic multi-family property in a great area during the financial crisis. This would have drastically altered my financial situation if I only I could have found my balls at the time.
I have never bought something to rehab. I can think of at least 5 deals that I kick myself for not doing these last few years. Again, I was too focused on my career.
Finally, I have never taken risks with location. People who invested the same amount of money in less desirable areas made a lot more money than I did.
Would it be best to break that 100k and buy multiple properties or one big property?
It really depends on your market. I would probably try to find something with rehab/repositioning potential that will require $100k equity. If it's doable, I'd even target $30-50k equity. Don't forget to leave money for mistakes. This will allow you to quickly gain more experience and equity.
Any advice is very much appreciated.
You mentioned in your post that you want to wait some number of years. I would absolutely not do that if you think you see an opportunity right now. The market might be in a very different place in 5 years.