Just curious what your first deal/property was. How difficult was it? How inexperienced were you? What was learned?
My first deal was many years ago, when I was 20 years old. I bought a 3 bedroom 1 bath house on an acre to live in. I paid $14,000 for it. While in it, I painted the entire house, and remodeled the kitchen, etc. About a year later I sold it for $36,000. I then bought another house, etc.
My first deal was a 3 bed / 2 bath foreclosure that I bought for 53k in 2012. It required around 8k of work.
It's been rented to the same tenant for the last 2 1/2 years. Rent was initially $850, currently $875.
The main challenge was having the guts to pull the trigger and trusting my realtor and contractor. On paper, everything looked great, but I was skeptical. Everything went smoothly, though, and that gave me confidence to keep going. I now have 14 properties and have a package of 4 more under contract that I'm doing due diligence on.
My first deal was a 3bed / 1 ba house that I bought for $40K and required about $30K in rehab. It's rented to students for $1,200/mo.
I learned to always get the plumbing inspected and know about local building codes! Unforeseen plumbing issues added $10K to my cost :(
Owner occupied duplex! It's still, IMO, one of the best ways to get into RE when you're young. I learned that the time to buy in to a neighborhood is just before any of your friends would live there.
Jean Bolger, 33 Zen Lane | http://www.solidrealestateadvice.com
Mine was a short sale, it took a few trips to the courthouse to stop the sale and about 6 months to negotiate. We manage to get the price down to half of market value. The property only needed cleaning up and fresh paint. Sold it shortly after. Although short sales take time and patience it helps the homeowner and my average ROI is about 400%
Oct 2011 a foreclosure at 239k (including funding fee). It was bought as a personal property and we put 12k into it fixing it up. We rent it for 1775 a month. Since than we have bought 4 more rentals. I also manage families rentals and have another 2 houses in the process with a goal of 10 total in 18 months. Than I will max our conventional loans and will have to look at another avenue ;)
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