Got my First Deal Under Contract!
I'm so excited to have my first deal under contract. It's a small 1 bedroom 635 sqft sfh on .25 acre lot and is rent ready but it's a start. I found this deal thru my mentor who found it driving for dollars. The contract price is $47k with the seller putting $2k in closing. I had a realtor pull the comps and they came back $67K. I already have a renter scheduled to look at the property this Tues. and I plan to use Cozy to keep track of everything.
Renting for $750/mo. Total expenses (Cap. Exp. 8%, vacancy 5% , repairs 5%, PITI ($355) are $490. BP calculator puts my ROI around 30%.
So far the hardest part was finding a 30 year mortgage for less than $50k. I was turned down around 20 times. Another lesson learned is landlord insurance is higher than regular home insurance. Fortunately I got a quote for my primary home and was able to save $83.33 per month on my home insurance. So the savings covers the landlord insurance ($68)
I'm trying to think of ways to increase the value of the property and the rent. None of the back yards are fenced on this street. I wonder if adding a fence would increase the value or rent? Any suggestions are greatly appreciated. No HOA.
In the same week I found out my wife is pregnant (after 10 years of trying). So it's been a crazy week and my motivation to make real estate work has exploded. I'm so thankful for the knowledge that BP has to offer and for my mentors help. He really helped me get over the mental hurdle of buying the first one.
