First deal accomplished!

First deal accomplished!

Member since 2018 · 29 posts · 27 votes

I would like to take a moment to share my story. I was interested in real estate investing several years ago but always felt it was not attainable. A few months ago I reached a point in my life where I have no debt (besides my primary residence) and able to save a decent amount to money each month. One day while performing investment research, I stumbled across Bigger Pockets and instantly became hooked. I began watching/listening to nearly every podcast and visited this forum nearly everyday. Heavily reliant on information from Bigger Pockets and other additional sources, I found my knowledge and confidence levels begin to rise to the point I felt this could be something I could actually do. I often heard the phrase "take action" and every time I did it felt somewhat personal. After exploring several different markets and evaluating what felt like hundreds of deals, I made offers on two different multi-family units. The first was denied but the second was accepted and am now under contract. I want to thank the Bigger Pockets community as I know without it, I likely would have never taken action. I am excited to continue learning and expanding my portfolio.

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Sandy, UT · Member since 2011 · 64 posts · 10 votes
7y
@Andre Sanchez did you use the BP calculator to analyze deals?
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  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    8y

    Congratulations @Andre Sanchez Keep us up to date with how it works out.

  • Rental Property Investor · Oklahoma City, OK · Member since 2016 · 10 posts · 1 vote
    8y
    @Andre Sanchez Felicidades! What market are you currently in? What are your real estate goals?
  • Member since 2018 · 29 posts · 27 votes
    8y

    @Ned Carey Thank you will do.

    @Dominic D. Thank you. I explored several markets and decided to focus on Cincinnati. My goals are to buy and hold.

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    8y

    Congratulations! You've taken the hardest step but you still have a lot of hard work ahead of you. Keep plugging away and be sure to update us on the progress.

    The DIY Landlord Book4.7248 Reviews
  • Member since 2018 · 29 posts · 27 votes
    8y

    @Nathan Gesner Thank you. I agree the initial step is the hardest and a lot of work still remains. I will keep you updated.

  • Realtor · Miami, FL · Member since 2018 · 53 posts · 23 votes
    8y
    @Andre Sanchez Congradulations
  • Blue Springs, MO · Member since 2014 · 353 posts · 52 votes
    8y
    @Andre Sanchez So what’s the numbers?
  • San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
    8y

    @Andre Sanchez Congrats! Thanks for sharing. 

  • Member since 2018 · 29 posts · 27 votes
    8y

    @Reggie Maggard Here is my breakdown:

    4-plex each unit 1 bedroom 1 bath, total sq ft 3,260

    Purchase price: $204,000

    Total cash investment: $55,170

    Expected annual rental income: $27,063 - two units currently renting under market value (long term tenants)

    Total annual expenses: $10,400

    Annual cash flow before taxes: $6,317

    Cash on cash: 11%

    CAP rate: 8.1%

    The unit has recently had a new roof installed along with new windows. Overall it is a bit dated so there is room to add value and increase rents.

  • Member since 2018 · 29 posts · 27 votes
    8y
  • Specialist · Little Rock, AR · Member since 2018 · 148 posts · 71 votes
    7y

    @Andre Sanchez Congrats!! 

  • Olathe, KS · Member since 2018 · 2 posts · 3 votes
    7y
    @Andre Sanchez congratulations brother
  • Member since 2018 · 29 posts · 27 votes
    7y

    @Adam Mittermeier @Mario Lopez thanks I appreciate it!

  • Sarasota, FL · Member since 2018 · 15 posts · 2 votes
    7y
    @Andre Sanchez thanks for sharing your story! I am just in the infancy of learning different strategies for real estate investing, pursuing the idea of House hacking. Looking at loan options and having a difficult time deciding what route to go. Any advice?
  • Member since 2018 · 29 posts · 27 votes
    7y

    @Nicole Walley thanks and sure thing, PM me if you would like to chat.

  • El Campo, TX · Member since 2018 · 15 posts · 0 votes
    7y

    Motivational, thank you for sharing your experience Andre Sanchez. 

  • Matt CrawfordPro Member
    Rental Property Investor · Maryville, MO · Member since 2017 · 77 posts · 38 votes
    7y

    Nice work @Andre Sanchez. Will you manage this yourself or is management figured into your expenses?

  • Member since 2018 · 29 posts · 27 votes
    7y

    @Matt Crawford thanks. This is an OOS property so I will be using a property manager, I factored in this expense at 10% of total rent collected. 

  • Matt CrawfordPro Member
    Rental Property Investor · Maryville, MO · Member since 2017 · 77 posts · 38 votes
    7y

    Great to hear @Andre Sanchez - If management at 10% is already factored into your numbers, it looks like you will be doing well with cash flow even after that!

  • Sandy, UT · Member since 2011 · 64 posts · 10 votes
    7y
    @Andre Sanchez did you use the BP calculator to analyze deals?
  • Rental Property Investor · Maryville, TN · Member since 2018 · 80 posts · 53 votes
    7y

    Excellent, @Andre Sanchez!

  • Perkasie, PA · Member since 2018 · 11 posts · 7 votes
    7y
    @Andre Sanchez. Awesome! It takes courage to take that first step. Keep that courage as you go through all of the next ones to stabilize the property! And let us know how it goes.
  • Rental Property Investor · Orlando, FL · Member since 2018 · 301 posts · 354 votes
    7y
    @Andre Sanchez awesome Andre! Looks like a good cash flowing deal!
  • Boston, MA · Member since 2017 · 15 posts · 4 votes
    7y

    @Andre Sanchez Congratulations on actually taking action! Closing on the first deal is the hardest. 

  • Rental Property Investor · Annapolis, MD · Member since 2011 · 232 posts · 170 votes
    7y

    @Andre Sanchez Congrats! Looks like a good first deal!

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