Things to take care of before closing on the first deal

10 Replies

Hey BP community! I am currently 2 weeks away from closing on my first sfh in Joliet,IL. Any recommendations on things that I could be taking care of in the mean time? I'm super excited to get started but I have some lag time that I would like to make the most of. Thanks for any suggestions!!

Originally posted by @Jamie Kammers :

Hey BP community! I am currently 2 weeks away from closing on my first sfh in Joliet,IL. Any recommendations on things that I could be taking care of in the mean time? I'm super excited to get started but I have some lag time that I would like to make the most of. Thanks for any suggestions!!

Hi, is this a BRRRR property? Or will you be doing any work to it? I would definitely recommend getting contractors and material ordering in place so you can hit the ground running once it closes!

Forrest Faulconer

 

@Jamie Kammers Congratulations on your first deal closing! This is very exciting. 

Things to consider

1. Property manager: who will manage your property? interview many people

2. Handy man: who will you call? also interview ALOT of people

3. Finances: make sure you have a system for saving for capex and such

@Forrest Faulconer it's not a BRRR but I do plan on doing some updates as far as painting the cabinets and flooring in the bathrooms. So you're saying get all of the materials purchased? Probably a good idea! Thanks for your reply!

Originally posted by @Jamie Kammers :

@Forrest Faulconer it's not a BRRR but I do plan on doing some updates as far as painting the cabinets and flooring in the bathrooms. So you're saying get all of the materials purchased? Probably a good idea! Thanks for your reply!

I recently did a tile job, changed the scope of work and needed more tile for the backsplash, went to the store and they were sold out, I lost a few days just like that.

Forrest Faulconer

@Steven Wilson thank you! I plan on managing it myself and using cozy for the screening/application/rent collection process. I have a trusted handyman ready to go because I'll need a new water heater before moving tennants in and a few other small repairs. I haven't determined how I will keep Capex separate. I do however plan on putting the rent and security deposit in a separate bank account that's ready to go. Do you go a step further and put Capex aside? Thanks for the reply!!

@Jamie Kammers in addition to having the materials ready, make sure you have extra flooring/tile saved should you need to replace some in the future. I had two tiles crack two years later and luckily I had 4 extra tiles leftover

@Jamie Kammers

Just like above always save extras. I always leave behind extra material for a buyer. I save pieces of flooring, shower and backsplash tile, mosaic accent tiles and what’s left in paint gallons. I even leave paint swatches with where they are in the house written on them.

Even trying to get more tile or flooring a few weeks later would be a different lot and color could not match right.