How much did you purchase your first REI for?

16 Replies

So I'm looking at several smaller properties in Salt Lake City area for my first investment. I'm really curious what is kind of the "norm" to spend on your first one? I'm sure it varies a lot! But I'd love to hear about your experience!

Teighlor, congratulations on being in a position to make your first investment. There are may different ways to put it together, and by being cautious and smart you will make great decisions.

I have a couple of past blog posts that deal with finding properties, wholesaling, and management in general. If you have interest I would be happy to share about my experiences in the Salt Lake Market.

How can I be useful as you move forward? -Trevor

Updated over 7 years ago

My first is in Fort Union, I moved out and turned my personal residence into a rental. So Purchase of $218,000.

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@Andrew Edwards

I've seen a few duplexes for around that price but the numbers never seem to work for good cashflow. Does yours cashflow at that price?

My problem is I see the prices people are paying for duplexes in the midwest and it makes our market look too overpriced to be worth it.

That duplex was purchased with a 9% interest loan about 15 years ago and even had positive cash flow then - with no money down using a VA loan. Ooh we have it so so good these days.

3B/2.5BA in Indianapolis. Purchase for 77,000, repairs 1300.

Rent is 1000/month. I used a conventional loan and have a descent ROI.

Do you research on rents in your area. BP has tons of tools to help. The rental analysis tool really help me.

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Hey @Teighlor Melton

Mine was $57,000 for an REO in a suburb of Chicago. But it's VERY market and sub-market specific. Lots of places much lower... and much higher :)

I bought my first rental for $9,300. It was located in Indianapolis & I still lived in Calgary, AB Canada at the time. It needed about $2k in rehab and rented for $550.

@Teighlor Melton

It depends on your market and what type of property. You can pay $10,000 for a dump that needs a lot of work in one market or $120,000 turn key in another market. I don't think there is a "norm". The only thing that matters is are you making money at whatever price you buy it at.