I figured I should post here, since I wouldn't be where I am if it were not for this website and all of the other tools and products that BiggerPockets has to offer. I am currently under contract with a closing date in mid-October on a duplex that I plan to house hack. I am active duty military and had the opportunity to use my VA loan for financing. I chose to put slightly more than 10% down in order to make the numbers work more favorably. I was able to purchase the property for nearly 25% off the asking price.
Based on the numbers I have run and comparable rent in the area I will be essentially living for free (not including luxuries like wifi/cable). I am beyond excited to begin my real estate journey and learning to be a landlord. The day the property went under contract I purchased Brandon Turner's book The Book On Managing Rental Properties and have been reading it as I nervously prepare for this next step. I am very impressed with the tips presented in the book.
I just want to thank everyone on here that provides newbies like me with information and advice in this business. I know for a fact that I would not have purchased this property had it not been for the hours of podcasts I have listened to by Brandon and Josh. Maybe this will motivate some other newbie to complete their first deal too.
Congratulations, James! 25% off asking price? Sounds like you got a great deal. How were you able to negotiate such a great discount? Could it have been the appraisal? Percentage wise, how much are you expecting to cash flow after PITI?
Thanks, yes the owner was a very motivated seller. It sat on the market for two months before we agreed on a price. I knew that the owner and selling agent were asking for way more than it was worth. I was also able to work with an incredibly helpful agent on my end. I explained to her my plan and showed her where I was getting my numbers from. It seemed like she had little to no experience with working with investors. I think she gained a little understanding about working with investors.
The appraisal didn't come in until after we agreed on a price. One offer had been made prior to me (for $40,000 more than my offer) however, the financing fell through for that buyer. After that the seller was even more motivated to sell. Based on my numbers that I have run myself and numbers from the Property Analysis Tool here on BP I should have a monthly cash flow between $200-230 per unit.