First rental property purchase!!!

25 Replies

So here's the numbers:

appraised value: $40,000

purchase price: $27,000

monthly rent: $550, (could have gotten $600, rookie mistake)

rehab cost: less than $1,000

dimensions: 2BR, 2Ba, Approx. 1,000 sq feet

The unit is already rented to a tenant who passed screening, and seems great thus far. I purchased it through I paid 20% down and used a credit union to finance remainder on a 15 yr note. So whaddaya think?

Congratulations on your first! Nice job taking action.  Keep it up. What kind of interest rate did you get on the mortgage?

Originally posted by @Ted Jackson :

So whaddaya think?

I would be thinking: "Out there is a property I haven't met yet. It'll be my second one."

Good luck. It gets infectious at about 4.

Congratulations!  Sounds like a good get.

@Ted Jackson

Congratulations. Sounds like a good deal. I'm in Rock Hill and the inventory seems to be really tight!

Congratulations. May I ask the location of this property?

Keep the spirit!

sure it is a single family home at 58 victory dr in cheraw, sc. A fitting street name for my first property.

thanks all, already in process of acquiring 2nd. The interest rate is 6.5%. Great deals are hard to find, but patience sure helps. I will post pics once I figure out if and how I can do that. I was inspired by listening to the podcasts. Been a member for a while, was just afraid to get started. 

I know there are many people with opinions about <$30k properties, but it sounds like this one has real potential. Buying equity as you did here is a fun perk of real estate investing. Good luck with this one!

Did you get any Private Money or Any other Funding,like not putting (no money down )?And what,s the step,s or procedures to the title company process ?

No I put 20% down, HUD covered some of the closing cost, I covered remainder. All in all it was like 7k down. I had been looking to buy for some time, I just couldn't find anything decent for a good price. I know that some folks are not a fan of these type houses, but to them I say there is more than 1 path to personal wealth. There is a huge demand for decent, affordable housing in my area. I plan to maximixe my opportunities by providing safe, decent homes at an affordable price, while providing excellent property management. I have been in financing for 5 years, so I have been screening people every day for years.

Congrats on the first rental purchase Ted.Numbers look great.way to go

Ted, that sounds like a win to me!  Everyone is going to have their opinions and those opinions may work for them.  If you are making a profit than what more can you really ask for?

We have 3 - 30k properties. Bought them 3...5. And 7 yrs ago. They are producing 32k a year before expenses in rent. Learning a lot every day. I start looking for new tenants 60 days before lease expires.New tenants can give their  previous tenants 30 day notice and we can keep our vacancy % as close to zero as possible. We do a thorough inspection and know exactly what needs to be done between tenants and have the right people tools and product ready for that day. If we can get in the last few days of the previous tenants lease to start work..we promise to get out the security deposit asap rather then waiting the 29 days legally we are allowed to. Everyone is happy and time is money. I also carefully screen each tenant and may go through 25 application before we approve one. It is a hectic few days but pays off for everyone.

Tthanks all. Pat I went through over a dozen and fielded 38 phone calls before I found a good tenant. That part of it is aggravating, but worth it.

Congratulations on number one and good luck on the second one.  Can't wait to hear about that one as well.

This is one of the best ways to rental.  I think it's cheap tuition from the "The School of Hard Knocks".  Note:  From which I graduated at the top of my class!

good job on the purchase. The numbers look good!

I like it! Good job. 

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