I did it! I finally made my first purchase and I did good.
Earlier this month I closed on my first property
3bdrm 1bath with a full unfinished basement in a desirable sub-division.
$72,000 Purchase Price
$5,500 Rehab costs
$77,500 All-In Cost
$32,500 Profit (If I Sell)
Right now the contractor is finishing up, work should be done this weekend.
The house is my profile photo if anyone wants to see it.
Now that I've finally got past fear, being stuck in the "learning phase" and analysis paralysis and all that other stuff that holds us back when we are just getting started, I feel like a lot of doors are going to open up for me now that I have finally made a Purchase and gained some kind of experience. Im very excited to see what happens in the future!
Congrats on your first purchase Troy
Congrats Troy, I need to get past the fear, I feel like I'm in the learning process I know there's a lot to learn, but I don't think I've learnt enough to even start. I have no idea where to start. Post like these does give me some motivation.
Congrats! Great Deal!
@Troy Cole. Congrats on the deal so far. I would say if you feel strongly about the housing market in the area and want to build a portfolio of these loans you should try and get a rental loan. There are lenders out there that will give you ~60-70% LTV on the value of the property as long as your rental income is able to servicer the monthly payment on the loan. In your case, you can get a loan on your current property and get some cash so you can continue buying other properties.
Congratulations! I echo your sentiment about analysis paralysis and am definitely inspired by your leap into doing your first deal :)
Way to go Troy! You've got plenty of exit options too. This is a great candidate for the BRRR method that George mentioned. Which is great for returns and continual wealth building as you keep the asset. Then if you ever decide to "realize" that profit someday through a sale, reach out to a good CPA and consider a 1031 exchange. Best of luck to you!
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