Property #1 Purchased!

For years now I have been wanted to get started in real estate owning rental properties. My whole life I have been involved with rehabs, and rental units for single and multi family homes. My parents used real estate as a side business but never quite committed. Needless to say they had their successes and failures but ultimately got themselves into a position after 20 years that they would have never been in had it not been for the houses they poured their sweat blood and tears into. I was right there in the mix of it my whole life. We used to move nearly every year to a new place where we would tear down walls, rebuild bathrooms, and do all the work ourselves between jobs, school, sports, and family. Needless to say my childhood experience had a big impression on me. 

For the past year as a senior in college I had to figure out what I was doing with my life post graduation. I traveled for interviews with a number of great companies and ultimately decided to partner up with some people in my hometown of Marquette Michigan to start buying up mixed use and multi family rental units. With only days till the closing of our first duplex financed with private money I backed away based on an interview opportunity. Needless to say I pivoted and moved an hour and half from my hometown to start a career in the maritime industry. I thanked the people I was working with in real estate for the opportunity, left them and took the job. 

But this isn't about giving up and giving in. Im on Bigger Pockets and writing this blog so clearly that wasn't the end of the story. After walking away from a closing only days before the property was mine this past April and finding out I was accepted into a new position the day before graduating from college I promptly made an offer on a 4plex. Rather then being partners with people I was able to do this on my own. With a little negotiation back and forth I nocked off $25k from the asking price and had a purchase agreement for $125k. 

Since that time 6 weeks ago I incorporated as an LLC, and locked in a commercial loan at 5.25% fixed with a 20 year amortization and a 3 year ballon. I was able to secure funds for 3 years at 8% from friends and family for the downpayment. Between financing, taxes and insurance I am left with $1440 in monthly expenses($5000 annual insurance right now, I will be fighting to lower this). Utilities cost another $460 a month putting me at $1900 in expenses. Rents should range between $2400 and $2700 for the building. Since I am occupying one of the larger 2 bedroom units I will only bring in $1750 a month. However, accounting for what I should be paying for my unit the building should cash flow between $500 and $800. $150 a month to live in my own building is doing just fine by my standards. 

Now if anyone could help me finance another property I have an 8plex(2 4 plex's) on my radar that is fully occupied with a waiting list and zoning to build 4 more 4plex's on the property.