Brandon's 100 day challenge??? I did it in 81........
March of this year I had a conversation with my Uncle that consisted of terms like "1030 exchange" and "gross rent" and other terms I had no clue what they meant. He sent me a few podcasts from this website I had never heard of...Bigger Pockets??? I listened. Then I listened some more. Then the bug bit me and I couldn't itch fast enough. I watched @Brandon Turner's webinar on April 6 and he challenged the viewers to buy their 1st/next property within the next 100 days. I closed on my duplex on day 81.
Here are the numbers......
Purchase price $300 k
Conventional mortgage 10% down with no PMI
vacancy 3% (vacancy is almost non-existent in this BYU town) $69
repairs 5% (I bought it fully remodeled) $115
cap ex 8% $184
other expenses $50 (internet I provide for my tenants)
gross monthly income $2300 ($1400 upstairs for a 3/1 and $900 down for a 2/1)
cash flow $274.39
cash on cash ROI 8.23%
The thing I did not add in is PM, because I will manage it myself. But, from here on out every deal I analyze will have 9% PM included.
"Some people want it to happen. Some wish it would happen. Others make it happen." Michael Jordan
Coco