Flipper/Rehabber · Spring Hill, FL · Member since 2014 · 234 posts · 132 votes
Bought my first deal and now its rented! I have a full time JOB, I'm a very busy single mom and now I'm a full time LandLady :) Here are the #'s:
Purchase Price: $78,900
Down Payment: $7890
Repair Costs: $1200
PITI: $585
Rented: $975
I'm happy with these #'s, it is my first deal and I've learned a lot already. I'm excited to take what I've learned and start looking for my next buy and hold deal.
Now I know what's coming next....all the 2%er's can have at it! (hard to get a 2% deal in my area)
Real Estate Investor · Sebastian, FL · Member since 2014 · 812 posts · 432 votes
12y
@Leigh C@Amanda Sutherlin Paying asking price is not, by nature, a bad thing. Paying an amount that does not cash flow is an issue. Sometimes, in some markets, paying asking price makes sense. I did it on one of my properties that is in a B- neighborhood and was a steal. I was not going to risk the chance that the seller would delay to negotiate and get a better offer from someone else. Could I have gotten it for less? Maybe. Could I have lost it by trying? Probably. I have also bid over asking price. And yes, there are properties that I would not buy at 25% of asking. The deal speaks for itself, not just one part of the deal.
Quote of the day: A good deal is a good deal, regardless of percentage of asking price that you pay.
I'm not familiar with that area but I'd check it out. The ones in the bad areas sometimes rent for just as much as the ones in the good areas. Many times the repair costs are overstated. Especially on foreclosures or banked own properties.
I'm not familiar with sink hole homes but many times there's an easy way out on even some of the worst foundation issues.
Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
12y
Congrats @Amanda Sutherlin ! This is very exciting! Thanks for sharing your story. If you run into tenant trouble, be sure to let us know and we'll be sure to help you out! Was this property in Florida?
Ignore the suggestion from @Jassem A. to look at properties in bad areas. The last thing a busy single mom needs is to deal with property/tenant issues in undesirable neighborhoods.
Flipper/Rehabber · Spring Hill, FL · Member since 2014 · 234 posts · 132 votes
12y
Thank you @Jon Klaus ! I used good ol fashioned Craigslist :) I qualified by running background checks, income verification and my 'inner' voice :) The 'inner voice' is mostly used for those you DO NOT want to rent to!
@Account Closed I totaly agree, I also have to take my son with when looking at houses, talking to people and I take him to the REIA meetings, no way in hell am I hauling him into a bad area.
Real Estate Investor · Sacramento, CA · Member since 2014 · 78 posts · 41 votes
12y
@Amanda Young -
YAY! Congratulations. Reminds me of the time when my wife and I did our first few deals. I carried my daughter on my shoulder and took pics and such. It seemed like a lot in those days but we grew stronger and we are out of the rat race now. Never let the goal out of sight and keep some money aside for reserves as things DO break . Also now would be a great time to get a Home Depot Pro Desk . Can get you up to 3% discount and every little bit helps.
Congratulations once again . Your kids will thank you for the wealth you create.
I'm not familiar with that area but I'd check it out. The ones in the bad areas sometimes rent for just as much as the ones in the good areas. Many times the repair costs are overstated. Especially on foreclosures or banked own properties.
I'm not familiar with sink hole homes but many times there's an easy way out on even some of the worst foundation issues.
Jassem:
Though its a sad portrait to paint of society, bad areas are many times even less safe for a woman, especially if she is the landlady.
Flipper/Rehabber · Spring Hill, FL · Member since 2014 · 234 posts · 132 votes
12y
@Tapan Trivedi thank you for the Home Depot Pro Desk tip! I try to involve my son as much as possible and let him do things like take the pictures :) If I can teach him how to start and run a business I'll feel accomplished. You know they don't teach you these things in school!
Thank you @Roy N. :) It is true, I'm a busy person. I'm giving up my today's for my tomorrows :)
Investor · Stamford, CT · Member since 2012 · 247 posts · 63 votes
12y
Congrats, @Amanda Sutherlin! As a fellow single mom, you're an inspiration. I'm still on the hunt for the right first buy & hold, so I'm trying to be like you when I grow up! ;-)
Flipper/Rehabber · Spring Hill, FL · Member since 2014 · 234 posts · 132 votes
12y
Why thank you @Vonetta Booker :) The finding and buying what the easy part...its the saving and saving....and oh saving thats the hard part LOL! Something always comes up and we have no back up income AKA the husbands/partner's paycheck to fall back on ;) Its hard, but you can do it!!
Investor · Louisville, KY · Member since 2014 · 202 posts · 111 votes
12y
Congrats! I can relate... Many years ago I was a single father, working full time and looking for real estate deals. It was tough but in the end WELL WORTH IT!
Investor · Asheville, NC · Member since 2011 · 833 posts · 499 votes
12y
@Amanda Sutherlin congratulations! I think those are great numbers for a first property, and you feeling safe and comfortable with both the location and quality of tenant is far more important than absolute adherence to the 2% rule. I would much rather have a slightly smaller but consistent return than a fluctuating 2%.
You are establishing a fantastic foundation, keep up the great work fellow Floridian!
Investor · PA · Member since 2013 · 1k+ posts · 602 votes
12y
I regularly have my fiance collect rent for me in what is considered the bad part of town. I think it all depends on the personality of the woman and the proximity of a property to a busy corner store. I would say it's statistically less safe to drive a car than to visit so-called "bad" areas. Most people stay away from any bad part of town without a second thought even if the crime rate tells a different story.
Of course the downside is that the property may not appreciate much if at all in these areas unless there is gentrification.
How chivalrous of you to send your fiance to a bad neighborhood to collect rent for you.
We have some corner stores in bad Pittsburgh neighborhoods, and I have yet to see one that has bullet proof glass or some magical power to transport a potential victim inside to avoid getting mugged, raped or killed.