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 almost 4 years ago
My first is in Fort Union, I moved out and turned my personal residence into a rental. So Purchase of $218,000.
Location is going to make it different for everyone- however my first purchase was for 120k.
Location and situation are everything, but my first was a small condo in Phoenix area for 35k. Fixed, rented for a while and the flipped 3 yrs later for a nice little gain.
It will vary a lot. My first was a duplex in South Salt Lake for $168k.
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.
Mine was a duplex for 168K in Virginia Beach, 3b/2b each side. Needed roof, windows, HVAC after that along with cosmetics.
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.
My first was a Triplex in Chicago for $300k
First property a duplex listed for $65k, bought for about $22k. Put $10k into it and rents for $1,200/month.
4 plex in Phoenix for $179,000. By the way, it was in April of this year.
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.
I bought a duplex in central PA for 25K, but put another 25K into it before renting it out.
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 :)
My first pure rental (not a personal property ) was 90k and rents for 1150 in Charleston, SC. It was bought august 2011.
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.
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.
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