I purchased my first property in March 2013 right after graduating college with a bachelor’s in finance (Dec ’12) and months after getting my first professional job as a staff accountant (July ’12). Making $35k /yr was a lot more than I had made before but with rent, student loans, and car problems I was barely able to afford to pay my bills. I was able to borrow $3,500 from a family member for a 3.5% down payment on a $100k duplex. With one of the largest military bases nearby (Watertown, NY) rents tended to be higher than similar areas elsewhere.

There was cosmetic work that needed to be done but nothing I couldn’t learn to do. While the 3 bd lower unit rented for $900/mo and upper rented for $800/mo I knew with some work I could get more. I had both tenants out before closing because they were not the type I would rent to (filthy apartments, food left out for days, smoking, etc). I immediately threw down laminate flooring instead of the nasty carpets and repainted the entire house (interior).

While I initially rented the lower unit for $950/mo and lived in the upper, I brought rent down to attract long term tenants(still able to cover mortgage). I ended up re-doing a lot more (refinishing cupboards, installing ceramic tile in the shower and bathroom, new molding/doors, new front porch, garage door, etc).

I went through 1 eviction, a medically retired military family. Neither spouse worked but had substantial income through the military. After countless times catching them smoking inside and nights waking up from them blaring music upon other issues I contacted a lawyer and filed an eviction. I have it in the lease terms that any eviction expenses will be charged to the tenant. After all the new paint, time, and clean up their deposit did not cover much more than the lawyer fees. I was in the hole about $600 with vacancy and supplies after the eviction. I will never settle again to get a unit rented. I will also conduct any other evictions myself if possible. I wanted to make sure it was done 100% correct and no steps were missed.

My job allowed me to transfer to Atlanta closer to my wife's family. I was excited for the real estate opportunities there in the McDonough/Stockbridge area. With not having any reputable property managers in town (except my realtor) I decided to list my house. After a couple months with no real hits listing it FSBO, I listed with a realtor. He made it known that there was around 675 days of inventory on the market for both single and multi-family homes. Within 6 days of listing I had an offer and after negotiations we agreed on a full price offer ($132,000) with $5K back at closing.

I will close 2 weeks from the appraisal. With living for free (minus vacancies and investments) I have increased the value of my property ~33%. This is giving me a good chunk to invest in other properties with. I spent less than $9K in improvements but put a lot of sweat equity in to this house and it paid off. It has been rough at times dealing with tenant and property problems but well worth it.

One thing I have not mentioned yet is I had done substantial research when looking for this house. I watched the market every day at what was sitting, selling and renting for around 6 months or more. This was an essential step to being successful in my first investment.

One task I will add to my next investment will be to talk with the neighbors before buying. I was lucky to have great neighbors, but had looked at a couple houses in good areas with a couple neighbors that did not take care of their property.

I hope that someone will get something out of this. If I can give a few key pointers they would be:

• Do your research, and then research some more before you invest in your first property. Jumping on opportunities quickly is for investors that know their market in and out.
• Never settle on a tenant. If you have a feeling they won’t work out move on. Chances are that they will cost you more than they will save you by renting your unit out quicker. I don’t work with people on money at all (VERY, very rare circumstances may allow).
• Don’t be afraid of sweat equity, especially if you are just starting out. YouTube was one of my best friends. Luckily I had a buddy to help on occasion but did just about everything myself. A lot of things end up being a lot easier than you would ever have thought.