First deal!!! So STOKED!!!!

[Glen Fitzmaurice]

I've wanted to get into real estate investing for 30 years.....but had more excuses not to than I had reasons to.  So for the last 27 years I've been running my karate schools and about a year ago I decided that I had had enough of this business and I needed to work on an exit strategy.  

So my wife and I have been looking for our first property for about 6-8 months.   We've looked at quite a few properties and most of them (in my price range) needed MASSIVE renovations (and I'm not much of a carpenter....yet).

Well, we found these properties listed together for $275K last spring.   It dropped to $249K a few months ago.   Then it dropped to $175K.

We looked at it, loved it, and put in a bid for $168K.....but there were several people looking at it after we did.

Twenty four hours later the sellers had accepted our offer!!!   W00T!

Can't wait to get started on this project!!!!

I have a pile of pics I'd love to share but it seems like I'm only able to upload one. 

[Dan H.]

Quote from @Glen Fitzmaurice:

Quote from @Brendan Mullenholz:

Congrats Glen on your first property!  Whats the plan for it?  It's kind of hard to tell from the picture but it seems like you could do a separate unit with that blue building and have a double income situation.  

 Gonna fix them up and rent them til I croak.  :D

There are two houses on that lot.   Outdated interiors, exterior needs paint.  One of them needs shingles.   I had a trusted contractor look at it and it's looking like we're gonna spend a low end of $25K and it may possibly go as high as $50K.

Even at $50K and $168K for the purchase I feel like we're in a really good place with these.

Congrats on taking action.   I have some concern based on “I feel like we're in a really good place with these.”   You should have a projection of your cash flow and return.

 Have you done any underwriting?   Do you know what market rent is for each unit?   Do you know your financing?   Do you know what the projected cash flow is using the 50% rule?   I believe the 50% rule likely is aggressive at that price point.

BP has a rental property calculator.   I still use it.

Do not rely on feelings; rely on the data.  

The price reflects a property that is unlikely to appreciate significantly more than inflation.   The bulk of the return is likely to be achieved via the cash flow.

good luck