My First Success Post
Not my first deal, but the first success I'm posting on here. I would love to say I've got all home runs, but you can win a game with singles and doubles.
The quick stats.
Purchased via auction.com for 86,000 with a partner.
Renovated, all cosmetic, paint, carpet, tile, some appliances, etc, etc. Spent $16k total and was on the market in 6 weeks.
Rented for $1250
Expenses are, $100 management, $85 insurance, $110 taxes. The rest is going into a savings account to for future repairs and vacancies and we take a disbursement as wanted.
We did a cash out refi a few months ago. Was appraised at 140k so we took $105k out and repaid ourselves. So all in all, we're whole, putting away a few hundred a month positive cash flow with none of our own money invested.
This approach isn't making me rich each month, but in 20 years, if I decide to keep, it'll be paid off and throwing off whatever the rents may be at that time.
Sure, making 100k in a flip is great (and looking forward to that deal) but a few more like these and life becomes easy.
I saw the benefit of having 50% ownership with finding the deal and dealing with the rehab and the partner made their 50% by letting me use their money for a year. They made about a 60% return on their money instead of the .02% they were getting in their savings account. Win/win all around.
Good luck everyone, real estate is a great vehicle to set yourself up for a great life. Take advantage of that!
