Under contract! Took a ton of property analysis...but paralysis is no more!
Fairly new around here, started educating myself on real estate back in October 2022 and found Bigger Pockets in November...what a blessing! Read a lot of the Bigger Pockets books, including the ones by Brandon Turner and David Greene. I feel that between the books, listening to the Real Estate Rookie and the OG podcasts, and analyzing several properties each week...i narrowed down my search criteria to fit my goals...and BAM! It happened. This was after several offers that either were not selected or I got in too late to the game. Patience and perserverance paid off.
So here's what I've got...
Location: Belleville, IL
Property: 3/2 SFR ranch, built in 1956. In an excellent school district, probably a B or B- neighborhood, 20 minutes from Scott Air Force Base
Asking: $115K
Purchase: $97,500
Terms: 30-year fixed, 6.625%, 25% down
Will require a fresh coat of paint and some minor cosmetic updates, but nothing too serious. Hoping to rent out for $1200 and cash flow $350-$400.
Now the real anxiety is starting to kick in! Like...what now? Have to order inspections and get this property ready! The hard work starts now.
Anyway, just wanted to share my excitement and anxiety. Hoping this first property will be the springboard I need to reach financial freedom in 5 years! Lots of work ahead for sure.
Thanks for reading. :)
James - Congratulations! You've made a HUGE step in your real estate investing career! I wish the best of luck to you... The next deals you do will be even better than this one. Just to stretch you're thinking, do you have a plan for capital for the second, third, forth, and fifth purchase? Hopefully you do! If you want to talk, please let me know!
Congratulations James!
This is a huge win. The hard part is yet to come, but so is the glory and freedom!
Would love to keep updated on how this one pans out. Excited for what the future holds in your real estate investing journey!
Congrats!! Keep us updated with how this goes and how the reno turns out!
Hello James! I am located near Scott AFB and I believe I had seen this listing online also! Congratulations! Reach out if you need help with the renovations or possible advertising to get some military renters ! Congratulations again !
Quote from @Greg Kasmer:
James - Congratulations! You've made a HUGE step in your real estate investing career! I wish the best of luck to you... The next deals you do will be even better than this one. Just to stretch you're thinking, do you have a plan for capital for the second, third, forth, and fifth purchase? Hopefully you do! If you want to talk, please let me know!
Thanks Greg! I'm glad you asked the question about capital too, it's something ive been thinking about. I will need to save some $$$ over the next few months for another down payment, but I want to learn more about creative financing. I may be able to pull out a HELOC from my primary residence to cover a down payment...or may look at some seller financing deals.
So I guess my answer to your question is...no. I don't have a specific plan for my next few purchases. Anything you recommend or suggest?
Quote from @John Clevenger:Will do! Thanks John! How's the market in Indy right now?
Congratulations James!
This is a huge win. The hard part is yet to come, but so is the glory and freedom!
Would love to keep updated on how this one pans out. Excited for what the future holds in your real estate investing journey!
Quote from @Elijah Maestas:Thanks Elijah! Good to someone local on here! I will be needing some reno and advertising assistance in a few weeks - let's connect!
Hello James! I am located near Scott AFB and I believe I had seen this listing online also! Congratulations! Reach out if you need help with the renovations or possible advertising to get some military renters ! Congratulations again !
Nice work, man! The first one is the hardest, but you will learn more on doing this one than by listening to 100 podcasts. Congratulations!
-
Lender
- Liquid Lending Solutions
Congrats on taking the hardest step (IMO)! That's awesome!
Definitely get your inspections ordered and completed. Make sure you understand the full picture of the property before you go to the closing table. I also strongly recommend a land survey as well.
You'll also want to start shopping property managers so you can turn the property over to them as soon as your repairs are completed. This can take some time as PMs can be difficult to reach, so don't delay.
Ask your local contact for references for tradespeople. Unless you plan to travel and do the work yourself, you'll want your contractors ready to go as soon as you close. Remember that after closing, every day of vacancy is money out of your pocket!
Don't forget about utilities. So many people let them slip their minds, then they try to go to work only to find the electricity has been shut off.
Good luck and I look forward to seeing updates!
Quote from @James Hamilton:
You've caught a fish, which can be exciting! But if you don't know how to prepare and cook the fish, you may discover it was a waste of time and you'll still be hungry.
Start educating yourself on how to manage what you've purchased. Marketing, screening applications, collecting rent, what numbers should you be tracking, inspections, lease renewals, tenants breaking the lease, unpaid rent, and so much more.
Do yourself a favor: buy "Every Landlord's Legal Guide" by NOLO. Written by attorney investors, it's full of practical advice pertaining to management of investment property, has sample forms that can be edited, and - most importantly - they tell you what your primary state laws are and where you can read them. It's updated every year and is the best $40 you'll spend as a Landlord. There is one book for 49 states and a separate book for California.
Great news. Good luck!
Congrats!! @James Hamilton
@James Hamilton Congrats! The first one is definitely the hardest. I know so many people who took years to get the first, and then bought multiple within 12 months. Killing it!
- Conner Olsen with The Moorhead Team
- 702-521-0034
- [email protected]
@James Hamilton I'm soooo happy for you, congratulations!!! I'm new to this and am learning how to analyze deals and will follow your lead with my first purchase one day in the near future.
Quote from @Laurie Hartz:
@James Hamilton I'm soooo happy for you, congratulations!!! I'm new to this and am learning how to analyze deals and will follow your lead with my first purchase one day in the near future.
Thank you Laurie Hartz! It has been a long process and we're almost ready to put a tenant in place - have interest already without even listing the property, so I am excited! Good luck finding your first property - soak in as much education (books, podcasts, videos...) as possible and make some offers when you're ready! Just getting the wheels in motion is the hardest part, but everyone goes through it. You'll do great!
Question for all - there is a little passthrough in the wall between the kitchen and living room, which is a bit ominous to me (see pics)
I just don't know what to do with it. We've drywalled the other side to the kitchen, so now's it's an eyesore from the living room. Any suggestions, I would be appreciative!
Congratulations! Thanks for describing the steps you've taken to get to your first one. I'm in the early learning phase. My idea is to plaster the inside to make a decorative "nook." If it looks like an architectural detail that would add value.
Well everyone, after 3 months of rehab...I have leased my first rental property!
Actually leasing it for $1300/month after originally hoping for a $1200 rent, so the hard work has paid off so far. Below is a before/after of the kitchen, which is where we spent the biggest chunk of time/money on during the rehab.
We used Zillow to advertise the rental and it worked like a charm! Dozens of inquiries and applications within the first few days, so I would highly recommend them to list your property. I read through Brandon Turner's "Managing Rental Properties" pretty much every step of the way, so I couldn't be more thankful for finding this community and all the resources on this site. What a blessing! And the podcasts!
Anyway, now it's time to focus on property #2! Looking to do something similar...and it's time I start working with a CPA too! Thanks for reading all.
James