Bought 1st Property, working 3 jobs, with 5 kids under 5 yrs old
Good evening BP,
I work full time as a teacher, part time as a behavioral therapist and I am a church musician. I'm trying to 10X my income to buy more properties. Furthermore, I'm married with 5 children under 5 years old, in which includes two sets of twins, that's right, TWO SETS of TWINS. I got Brandon Turner and Josh Dorkin beat. All that being said, I still make time to analyze, view and make offers on properties. I've purchased my first rental property back in March of 2015 for $60,000, in Pleasantville NJ, a suburb of Atlantic City.It was a foreclosure listed on HomePath.com. It's a SFR 3 bed 2 bath Rancher. We put 25% as down payment. With rehab, holding cost and down payment, the total all in cost was $31,201.19. We were able to rehab the property and get it rented in 1 month. My wife and I currently manage the property. We are still on Bigger Pockets learning, reading, listening to all the podcast, webinars and TAKING ACTIONS DAILY.
I will write another post about offers being rejected, losing funding and losing money, agents, building my credit and raising capital. Failure is a part of growth and I intend on expand my business for my BIG family and to live life on my terms. Thanks BP!
Here are the numbers: * if I missed something feel free to communicate
Monthly Rent: $1,395
PITI: $594.85
Property Management: $139.50 (10%)
Vacancy Rate: $97.65 (7%)
Cap Ex: 69.45 (5%)
Utility/Misc. (5%)
Cash Flow: $382.43 *CF is used to build a 6 month emergency fund of PITI. The rest is for reinvesting.
Total Deal/Return on investment Appreciation: $15k (48.11%) equity position
Depreciation: $3,400 (3.85%)
Amortization: $473.51 (1.52%)
Yearly Cash Flow: $4,589 (14.71%)
*Prop. Management: $1,674 (5.37%) *I don’t really count this in the deal