First Buy and Hold Rental - El Paso, TX
Bought a REO foreclosure that was a little rough around the edges but only required moderate rehab to get it looking nice and rented out. The whole process took about 3 months from closing to rehab to renting out. Something that I know I need to improve on with the next one.
So here are the numbers:
Purchase price - $76,000
20% down - $15,200
Rehab costs - $8,000
ARV - $105,000
Now there are lessons learned and will be looking for a "better" deal on the next rental, but accounting for all expenses (P&I, insurance, maintenance, CapEx, property mgmt) and even with our high property taxes here in TX, it's still cash flowing approximately $150. Not meeting the 2% rule but makes the 1% and cash flowing. Definitely glad I got my feet wet with this first deal and headed in the right direction. Now with this experience, being more aware of key metrics to focus on, and constantly running numbers I hope to have a better deal to show for rental #2.
Currently looking for the next one. I would love to connect with any El Paso investors (or Las Cruces) that are active or wholesalers in the area. Comments, questions, requests are welcome. Thanks