1st and 2nd rental property within 3 months?!

15 Replies

Hey everyone,

I'm still pretty new to BP, but have some potentially great news ahead, so I thought I'd share.

My fiance and I are just getting our feet wet on our Real Estate Investing, and landed our first 2-family rental on March 31st through an FHA loan. Now, under 3 months after closing on that one, we have a really great opportunity to get a second one through owners financing!

Because we have been saving as much as we can to invest, (as most 23 year olds dont..) we have a great opportunity in front of us that is ours for the taking. We hope to own 3 rental properties before our first year is out. Can't wait to see this property tomorrow! :)

Joe

Hope it works out, Joe!

Great news, congrats. We would love to hear some details on the deal(s) if you can share. 

That's awesome. What's more important is that you have someone to help you build and I don't think it's impossible to have 3 rental properties..

Congratulations, I hope it works out for you.

Originally posted by @Ariam K.:
That's awesome. What's more important is that you have someone to help you build and I don't think it's impossible to have 3 rental properties..

 Thank you everyone! Yes, my fiance and I are very much on the same page here, which is my best asset. And it definitely is not impossible to own 3 rentals by year end.. We save everything we can and are in close with the right people.. We have a family friend realtor who has been in the business for a very long time and has been helping us find deals.. (My first and this one). She has also suggested the possibility of owner financing one of her rentals to us with $0 down :) Very exciting!

And the numbers so far..

list price 99k, rents for 650 and 700, but one unit (rented for 700) is under valued by 100-150 because the owner now is renting to his niece? or something.. not a big deal. 

The owner has offered to do 95k, 7% down, 4.5% int, amortized over 30 years, balloon in 5yrs. I may offer less to make the numbers a little better. Been on the market for a while. 

Joe

Woo-hoo! Congratulations and hope this all runs great for you and good luck with your investing career.

Congrats!!

23 and already a homeowner, way to go!

Originally posted by @Joseph Shevy :
Originally posted by @Ariam K.:
That's awesome. What's more important is that you have someone to help you build and I don't think it's impossible to have 3 rental properties..

 Thank you everyone! Yes, my fiance and I are very much on the same page here, which is my best asset. And it definitely is not impossible to own 3 rentals by year end.. We save everything we can and are in close with the right people.. We have a family friend realtor who has been in the business for a very long time and has been helping us find deals.. (My first and this one). She has also suggested the possibility of owner financing one of her rentals to us with $0 down :) Very exciting!

And the numbers so far..

list price 99k, rents for 650 and 700, but one unit (rented for 700) is under valued by 100-150 because the owner now is renting to his niece? or something.. not a big deal. 

The owner has offered to do 95k, 7% down, 4.5% int, amortized over 30 years, balloon in 5yrs. I may offer less to make the numbers a little better. Been on the market for a while. 

Joe

 Congrats Joseph.  Next big thing is to see how well you can manage your properties (either yourself and get someone to help you).  You will soon learn a lot.  Based on personal experience, please expect to hit bumps from time to time but persevere.  At some point (latest - 1 year before your balloon kicks in), start thinking of how to refinance.  Time flies by quicker than you would think.

Congrats once again!

Thanks Everyone! looking at the property today!

Che Chiu Wong, I already am learning a lot about property managing... as this current one is a little bit of a hassle. But, I love it!

Mohit Tater, Yes! hopefully 2 before I turn 24 in a few months!

Congrats Joe!

We had a similar start- closed on our first two rentals in January and April 2013.  We bought another one last month and are under contract for 2 more, which will get us up to 16 units in 2.5 years.  We expect to add 1-2 more 3-4 unit houses every year for the next few years as long as the market is still good....

Originally posted by @Kelly N. :

Congrats Joe!

We had a similar start- closed on our first two rentals in January and April 2013.  We bought another one last month and are under contract for 2 more, which will get us up to 16 units in 2.5 years.  We expect to add 1-2 more 3-4 unit houses every year for the next few years as long as the market is still good....

Thanks Kelly! It sounds like I am following in your footsteps a little :) 

We put the offer in last night, and my agent just told me they are discussing it now... If we can grab it at this price.. I will be a happy camper :)

Joe

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