My first buy and hold

[Phil Bottfeld]

I purchased my first home when I turned 25, and was able to save enough money to purchase my first investment property at age 28. I purchased the condo for $88,000 and after rehabbing the property, I was able to get it rented out within six weeks at $1,250/month.

Here are my annual numbers

Rent- $15,000

Insurance - $600

HOA - $5200

Taxes - $2,000

Maintenance - $400

Annual NOI - $6,800 resulting in a yield of 6.5%, as I am in the property for $105,000.

While the property did not generate the cashflow I expected, (mostly due to my rental rate being wrong in underwriting, and I spent $5,000 more than I expected in rehab, the property is now worth $130,000. Essentially I can flip the property and make $15,000 after closing costs considered today. Not a homerun for most flippers, but I bought this for the intention of cashflow and this property has done well.

Thanks for reading,

Phil