Closing on First SFR in a Week
Hello BP,
I am very excited to share that my wife and I are closing on our first rental property. We are in our late 20's and have been wanting to do this for years; I have been studying investing, off and on, since 2013 when I found Bigger Pockets and we decided that now is the time to take the next step. I will give a few details below and look forward to hearing back.
3/2 SFR
Purchase Price: 115k
LTV: 85%
Rehab costs: <$5k
Expected Rent: $1250
Mortgage (+insurance/taxes) $840
Remainder of cash flow will be set aside for expenses and reinvestment. I am not yet a Pro member but ran the numbers on the calculator, which is an awesome resource! Accounting for expenses, I expect monthly cash flow to be at least $200. After we secure a tenant, I will ensure to provide an update with the actual cash flow. An additional bonus is the property appraised at $124, a nearly 8% increase over my purchase price.
This property is in average condition that needs attention mainly cosmetically. We are going to spend the first month of ownership cleaning the property up and addressing any key areas to minimize operating expenses throughout the lease term.
The goal is to obtain a qualified and decent renter within a month and a half of closing. After securing the tenant, we will celebrate completion of our first positively cash-flowing property. We will assess our learning, any areas of improvements as well as celebrate the things that we did well in order to be prepared for the next purchase.
This first deal will not make us wealthy, but it was very important to us to take the first step. I am very excited to get started and grow as a real estate investor. I can share any more details if interested, but will leave it to this summary.
Thanks BP for being such a great resource.
Rodney