Closed on my first house of 2015

21 Replies

We finally closed today on our first SFH of 2015 (contract signed on 12/24/2014). 1100 sq ft ranch, 3br 1ba for 42500 that needs interior paint, new kitchen and bathroom floors and a kitchen countertop. We are also replacing the stove and fridge and it is ready to go. House has newer roof, brand new furnace (replaced on 12/31/14), and a new hot water heater (8/14/14). The house is in great condition and we are excited to get this one creating income.

Working through the lease with the first tenants for $750/month.

Thanks to all from BP that helped me with issues along the way.  You know who you are.

Now to start looking for the next one...

Congratulations!

Congrats @Dan Perrott  

May I ask how did you get the lead on the house (MLS, Agent, networking) and how long form initial offer to close?

ken

congrats Dan. Must feel good to get the first one done!! Great overcoming those hurdles along the way! keep it up also, what type of deal structuring or financing did you use to get the deal done? so is this going to be a flip or buy and hold for you all?

with the improvements can you push the rent to 800?

congrats on doing it

@Dan Perrott  

Great job. 

Do you need to do all of the repairs to move in this tenant at $750?

Great start to the new year.  

Thanks everyone.

@Kenneth Hynes - picked up the lead on the MLS. Put it under contract 3 days after it was listed. We put it under contract on 12/24/14. We closed this last Monday, 1/26/15. There was a lien on the title from the original owner (home equity with 0 balance) from a bank that was bought out by another bank. They could not find any records of the loan. Took the lawyers a couple of weeks to clear the issue.

@Account Closed  - Did a all cash deal.  It was an inherited property from an out of town owner.  Very motivated to get the cash...

I have started the rehab and are amazed at what great shape the home is in.  Loving it...

Final update. 

Rehab is finished and the tenants have moved in.  We installed new Allure flooring and counter top in the kitchen, purchased all new appliances (stove, vent and fridge), installed new toilet, vanity, and Allure flooring in bath, installed ceiling light circuits in bedrooms, installed new ceiling fixtures throughout, replaced all outlets, rewired the garage (what a mess!) and painted the entire interior.  We completed all of the work ourselves in 26 days!  

Rehab cost was $3,900

Total investment is $46,400.

Tenants moved in on 2/21 at $775/month.

Need to do some minor exterior repairs and work in the spring (i.e. refinish the deck, paint the trim, clean up the landscaping, etc).

We are now looking for the next property!

I know I am not breaking any news here, but it is incredible how much money you save doing all the work by yourself on a rehab.

Just curious because I do not know the Indianapolis market.  At a price point of 42k with minimal rehab (in terms of cost not effort), what kind of neighborhood is this property in?

Congratz

The cash flow must be awesome

Awesome! Congrats

@Michael Noto   I would call it a C+ neighborhood.  Solid working class neighborhood.  I don't expect a great amount of appreciation but I bought the property well under market. 

@Kathia L.  Cash flow is good with about a 5-6 year timeframe until the property pays for itself.  Current tenants said they expect to be there for at least 5 years. 

Great story.Thanks for sharing and congratulations!

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