So FINALLY after a year of trying to get my first deal, tonight I will be signing off on the paperwork! I am so excited for this as it has been a long time coming! The deal looks like this... Duplex with 1 side rented for $350/mth and the other side I will be renting for $375/mth and attempt to possibly raise the other sides rent to $375 also after I speak with the tenant tonight. The total purchase price is $29,000, I put $5,000 cash down and will be paying $333/mth for the next 6 years. The owner is doing all the financing and charging ZERO interest! The half that is vacant at this time does need some work (windows and paint) which I will be getting right on that as soon as I get home from the beach. Thank you to everyone on this site for the great information, mentor-ship, and feedback along this journey! Let the games begin!!!
Way to go. Sounds like you got yourself a great deal there. Congrats on the first deal. I hope that mine doesn't take me a year to get to.
Congrats on your first deal. If all goes well I should be closing on my first at the end of September.
Wonderful! Quite amazing too. How did you find this property? Owner financing and no interest is almost too good to be true. Be sure to use a good title company and make sure the purchase agreement is examined by a professional that can attest that everything is in order. Keep an eye on the BP landlord forums as you begin to work with tenants. All the best to you! Congrats!
@Marcia Maynard Thank you! The seller is my grandfather's friend that has owned 4 duplex's for a long time and is ready to sell them. I definitely got lucky with this one with the no interest but he is a friend so that definitely helped me. I did have the contract examined by my attorney along with the title search performed and he called yesterday and said everything looked good and to go ahead with the deal.
@Scott Nipp @John Cimino Best of luck to the both of you! My only advice (and I am new to this) is to just be patient! I had another duplex lined up across the street and have been working that deal since September of 2013. It fell through not too long ago due to the seller backing out and not wanting to sell and I was bummed out. That same night I was talking to my grandfather and he said that his friend was thinking of selling his duplex and I walked down to his house and we started negotiating. So it's true that when one door closes another one opens!
Congratulations on the first deal! Make sure you have those rental contracts reviewed by an experienced attorney.
Congratulations!!! I also hope my first deal doesn't take a year to come along but as long as it's as good a deal as yours is I think I can hold off. Best of luck to you!
Congratulations on completing your first deal. Now go get the next one!
Best of Luck to your future deals,
@Micheal Rieves Thank you! I got the keys and am ready to get started! I'll try to keep everyone posted on how the progress goes!
So I told you guys that I would try to keep you updated, so here we go.... I put on here before that the one side was rented, which it still is and the tenant just signed another 12 month lease with me yesterday. I didn't raise his rent though and left it at $350/mth. I have been working my butt off on the other side (put in 8 new windows, new carpet, paint, and general cleaning). The vacant side is about 90% ready to rent. I decided to do a full remodel of the bathroom since they are very small, so that is what the hold up is. I redid all the plumbing in the bathroom and put in a new shower (there was no shower before) and reconfigured the layout to give it more space. I should have it completed within a week or so and I already have a renter lined up for that side. The rent for that side will be $375/mth, so I will be bringing in $725/mth. in rent. Since I got the zero interest loan for 6 years, I think this makes it a great deal. One thing that I underestimated was the cost of rehab which I would presume that alot of newbies do. I put aside 2 grand for the windows/paint/new rear door/general maintenance. I did go over this budget but not by too much. After this bathroom is completed, I am expecting to have spent about $2,500-$2,700. So my total all in cost is around $7,500 with the $5,000 down payment. Sounds pretty good to me. Good luck to everyone!
Congratulations! Sounds like you are well on your way to being a buy and hold investor. First deal was the hardest for me. While every deal has certainly since than has got better, the hardest part was jumping in.
Thanks Elizabeth Colegrove I am hoping that it gets easier. My biggest problem is contractors. My cousin is an amazing carpenter, however my projects get put on the back burner (but I get a nice savings) which slows my projects down. I do alot of the work myself which as I grow this business, I hope to find some reasonable priced contractors to take some of the stress off me. I spent almost every night after work at my rental for the past month which was taking away time from my family. Although, my wife and daughters did come help me paint and clean up so at least we got to spend some time together. I am finishing up the bathroom this week and should have the other side rented by the end of the month. Then on to the next one! It can only get easier from here right? lol I totally agree that the hardest part is jumping into it, took me a year to close my first deal but that's because another one fell through. Thanks for posting!
As a landlord of almost 3 years. I can tell you that contractors are STILL my hardest problem. Finding good work, reasonable is hard. It's honestly why I started doing more shortsales than foreclosures. I found that I could get short-sales in better condition than foreclosures for the same price. The different was "brain equity" versus brawns equity. Since I could sit on top of realtors, dealing with the extra long sale time extra. That made more sense for me.
Good job!! Sounds like the year long wait was definitely worth it. Keep up the hard work, it seems like you're on the right track. It's always exciting to hear about people's first deals =)
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