Closed on my 1st Investment!

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Closed on my 1st Investment!

Dominique B.
Rental Property Investor · Washington, DC (Metro) · Member since 2020 · 39 posts · 136 votes

Investment Info

PP- 53k

Closing – 3k

Repairs/Rent-Ready updates: 5k

Additional Holding Cost (Rental and lead inspection, home inspection, etc.) – 1k

All in Costs – 62k Cash

What made you interested in investing in this type of deal?

My goal was to purchase a buy and hold for passive income. After running the numbers and approving of the block, the deal made sense.

How did you find the deal and negotiate?

This was an off-market deal that was sent out via a mass email blast. I opened the email at 2am, scheduled to see it at 4pm and made the offer at 4:15pm.

How did you add value?

The property was nearly turnkey. I made minor repairs based on feedback received from the home inspection and cosmetics updates (repair roof over porch, replace carpet, new paint, new blinds, and update appliances)

What was the outcome?

I have hired a management company to handle placing a tenant and the day-to-day operations. Rental comps in the area will garner $1300 – $1500. I will be putting a HELOC on the property and pulling out 75% of my funds to use as another cash buy for my second property in March.

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Most Popular Reply

Leo Watts
Real Estate Agent · Washington, DC · Member since 2017 · 109 posts · 93 votes
5y

@Dominique B.

Looks great! What zip code? Any HOA?

4Reply
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  • William Johnson
    Member since 2020 · 2 posts · 0 votes
    5y

    @Dominique B. Congrats on your purchase!! Have you had the appraisal completed? How much do you anticipate being able pull out? What will be the anticipated mortgage payment? What is your anticipated cash flow?

    0Reply
  • Howard HerringtonPro Member
    Realtor · Boston, MA · Member since 2014 · 159 posts · 75 votes
    5y

    Congratulations @Dominique B. You are well on your way.  I would love to chat sometime about your experiences as I am looking to jump into the DC/Baltimore market.

    0Reply
  • Stone Saathoff
    Investor · San Antonio, TX · Member since 2019 · 576 posts · 307 votes
    5y

    Wow, those sound like some solid rental numbers!

    Congrats on your first deal.

    0Reply
  • Laura Pattawi
    Investor · Nashville, TN · Member since 2017 · 10 posts · 7 votes
    5y

    Awesome! Great job on your first property!

    0Reply
  • Tonya Kelly
    Bay Area · Member since 2019 · 29 posts · 10 votes
    5y

    @Dominique B.

    Happy New Year and Congratulations!! That’s great for the DC area.

    0Reply
  • Roi Azoulay
    Real Estate Agent · New York, NY · Member since 2019 · 55 posts · 28 votes
    5y

    Congrats!

    0Reply
  • Bud Gaffney
    Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
    5y

    @Dominique B. Congratulations! Cheers to many more :) 

    0Reply
  • Dominique B.
    OP
    Rental Property Investor · Washington, DC (Metro) · Member since 2020 · 39 posts · 136 votes
    5y

    @William Johnson the appraisal will take place next week but regardless of what's extended I will only be pulling out 50k to recycle. I will be firing all cash flow from both properties and surplus income back at the pay down to have it closed out in 6 months. I will then pull out another 50k to repeat and buy again. Cash flow on this deal without the HELOC will be $780 - $990 (taking into account PM fees, capex, taxes and homeowners insurance)

    2Reply
  • Dominique B.
    OP
    Rental Property Investor · Washington, DC (Metro) · Member since 2020 · 39 posts · 136 votes
    5y

    @Howard Herrington sure, no problem! Feel free to ping me I’ll help out where I can.

    0Reply
  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    5y

    That rent is nuts for the price

    0Reply
  • Cory WallacePro Member
    Rental Property Investor · Norfolk, VA · Member since 2020 · 53 posts · 38 votes
    5y

    @Dominique B. Congrats on your first investment!!

    0Reply
  • Bilal Williams
    Member since 2019 · 20 posts · 7 votes
    5y

    Congratulations!! Well done :)

    0Reply
  • Tad Wolfe
    Grand Rapids Michigan · Member since 2020 · 5 posts · 0 votes
    5y

    Congratulations 

    0Reply
  • Jennifer Dawkins
    Member since 2020 · 6 posts · 4 votes
    5y

    @Dominique B. Wow! Congrats!! I've been studying wholesaling but I feel like I want to go more the route you're going. Did you just save all your cash for this first buy? Or did you say you took money from your current home?

    Thank you!!

    0Reply
  • Dominique B.
    OP
    Rental Property Investor · Washington, DC (Metro) · Member since 2020 · 39 posts · 136 votes
    5y

    @Jennifer Dawkins the capital was saved from my W2 over the course of 10 months. I briefly thought about pulling a loan from my primary home but decided against it since I had the capital on hand. Good luck to you on whichever route you take!

    0Reply
  • Latonya Iskan
    Rental Property Investor · Fredericksburg, VA · Member since 2020 · 16 posts · 7 votes
    5y

    @Dominique B.

    Congratulations! I'm setting forth the steps to have my first property soon! Very exciting!! Let us know ow when you get that second one!

    0Reply
  • Jennifer Dawkins
    Member since 2020 · 6 posts · 4 votes
    5y

    Thank you Dominique for the reply! 

    1Reply
  • Orlando Ortiz
    Rental Property Investor · New Jersey & Virginia · Member since 2020 · 29 posts · 11 votes
    5y

    Cheers! 

    First, of many more deals to come.

    Congratulations!

    1Reply
  • Bryant Naylor
    Realtor · Falls Church, VA · Member since 2019 · 23 posts · 16 votes
    5y

    @Dominique B. Congrats and well done! Best of luck to you!

    0Reply
  • Travis Jacobs
    Rental Property Investor · Chattanooga, TN · Member since 2020 · 30 posts · 18 votes
    5y

    Congrats! Looks like a great deal, here I am attempting to get a 1% deal house hack when people are getting 2% deals! 

    0Reply
  • Ola Dantis
    Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
    5y

    @Dominique B.

    Wow. That Rent To Value ratio [$1300/$62,000 (assuming all-in cost = appraised value] is pretty sweet. 

    Congratulations!! 🎉 

    0Reply
  • Dominique B.
    OP
    Rental Property Investor · Washington, DC (Metro) · Member since 2020 · 39 posts · 136 votes
    5y

    @Latonya Iskan thank you! And will do ☺️

    0Reply
  • Bhavesh Joshi
    New to Real Estate · Philadelphia, PA · Member since 2020 · 3 posts · 1 vote
    5y

    Hi @Dominique B., this is really cool and an inventive strategy in getting your first investment property.

    Trying to follow your steps here as I look to secure my first property this year, and am I correct in understanding that you put a total of $62K on the house, took out a HELOC on the property in the value of about $50K and will be paying that HELOC back in a 6 month period? Curious on how you're managing the repayment on the HELOC knowing that the rent is close to $1500/month and your cash flow (profit from rent, correct?) is around $780/month. All in all, this seems like a very smart way to "finance" investment properties as interest rates are so low right now. Thank you for sharing!

    0Reply
  • Dominique B.
    OP
    Rental Property Investor · Washington, DC (Metro) · Member since 2020 · 39 posts · 136 votes
    5y

    @Travis Jacobs house hacking is a great method though lol. Had I studied up on REI before I likely would have gone that way instead of new construction. Best of luck to you!

    2Reply
  • Ashley Van Tassel
    Hawley, PA · Member since 2020 · 4 posts · 7 votes
    5y

    @Dominique B. Looks like a fantastic deal, what a great way to kick off 2021! Awesome job!

    1Reply
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