Age 23, bought my first property with 6% down
Hi all!
Just want first to thank Biggerpockets. These podcasts (which are so down to earth compared to those self-proclaimed guru's **BS** out there) have played a large role in keeping me motivated for the last two years when I really wanted to get into real estate but couldn't due to student life, lack of stable job, minimum wage, etc.
Anyway, fast forward a couple years, a diploma and a good job later, I just closed on my first apartment building. Here are the details :
-7 units, gross rent for 37K year. Net income of around 17K after operating expenses, maintenance, management and vacancy are accounted for.
-Paid 375K, appraised at 400K on day 1.
-Seller financing over 5 years for 70K, 4%. Interest only over the 5 year term.
-Bank mortgage for 282K
-Cash needed out of my pocket : 23K + 3K in acquisition fees. Around 26K total.
Total estimated ROI for year 1 (net income after interest expenses/cashdown) : 60%
I really hope everything goes as planned. I still have a few repairs to do on the building (obviously it's not new), but overall a good building in my opinion (also reassured myself with a good inspection pre-acquisition).
So, that's it. Just wanted to share my first property story. Nothing compared to some of you who have had much more impressive beginnings but maybe if I can motivate a few beginners out there, then I'm happy with it.
My advice :
I've had analysis-paralysis for way too long and it amounted to nothing but stagnation. So, take a deep breath, take calculated risk and go all in. Just don't suck at maths :^) !
Now, on to doubling my asset within the next year!
Cheers!