My First POST and My FIRST deal... [Nervous about responses...]
Greetings to everyone at BP. I am a new member here as I just signed up today so I'd like to take this opportunity to say hello to everyone. I was honestly unaware that this type of a forum existed with so much knowledge coming from novice, intermediate and professional investors alike.
The reason I came here was to learn to become a successful landlord and in a few short hours of reading, I believe I may have cut a year or more off that learning curve. Now I am curious as to what a few of you think about my deal? I did this deal on my own and because I BELIEVED it was a good deal, not because anyone told me it was a good deal.
Right before the holiday I closed on a duplex in Bellflower, CA. It's actually two SFR homes on a 10,000 sq ft lot. Each home is side by side, not front to back like the older ones in the area. The property was built in 2007 and each home is a full 3bd and 3 bath 1,672sq ft.
Here are the particulars:
I paid $690,000. I own the property free and clear. Both units are rented out at $2,250. Unit-A's tenant is month-to-month section 8 and has been there for 3-years. Unit-B's tenant is also month-to-month and is the original lessee from 2007.
Expenses:
Taxes which are 6,500 / 12 = 541
Wate/Trash: $72 every other month
Gardening: $100/mo
I have not allocated maintenance and vacancy costs yet as I am brand new to this...
WHY DID I BUY THIS:
1. The builder and previous owner was a personal friend. I know the property and area fairly well.
2. The tenant in Unit-B is also the maintenance man so he lives onsite and since he's the original lessee that strategy appears to be working.
3. In that area, most properties are 1950-60's and are bringing similar rents. Market value on these units are $2,500/mo fairly easy IMO.
4. Being a newer property, long term expensive maintenance hopefully wont be an issue.
5. I feel these units are desirable due to lot size and being side by side. When you drive by you cannot discern that it is one parcel. Each homes is nicely positioned on its half of the 10,000 sq ft lot.
6. Lastly the property is worth about $725,000 and we did a deal with real estate fees.
And after all of that, based on what I have been reading, my numbers (in my opinion) won't hold up to what I am reading that professional investors are achieving on this forum...