Closing on First Property!

14 Replies

Finally. We are closing on our first property, a three family in the beautiful Hudson Valley of New York, tomorrow. Wife and I are excited but nervous.

It's been three years and more than a few purchases that didn't happen for one reason or another.

We couldn't have done it without this awesome site and community. Thanks Josh, Brandon, and the rest of the BP team for making tons of valuable content available.

First of many.

Thanks @Ruth Bayang .  It's a buy and hold property for us.  That's our main strategy with a little flip sprinkled in to help with down payment funds.

Great News @Frank Gucciardo !

Send pictures when you're finally done and best of luck to you!

Congrats and if you need anything don't hesitate to ask the community. I've had so much help from this site as I've been learning!

congrats Frank G.   

Congratulations!!!

Great work! Way to stick with it!

Congrats! Remember, don't go nuts with improvements if your plan to rent the property. Most people do not take very good care of rentals. I own nearly a dozen of them now so I'm speaking from experience.  A good place to start is to visit comprable homes for rent in your area first. This will give you a very good idea as to what you will be competing with and what buyer's will be expecting within your rental price range.  

Best of luck to you!

Thanks everyone.. I haven't been able to get back to this thread as we've been busy getting the existing tenants on our m2m lease and creating a punch list of what needs to get done on the property.

I'm going to omit the purchase price and details for now but will circle back later on and add in.  Suffice to say the cash flow numbers are all solid and in line with the area.  Only time will tell if my extensive spreadsheets are right.

It's a brick, three family, from 1903 that was completely rented out.  we have a lot of old stock in the Hudson Valley and My wife and I actually prefer older homes since we live in one and know how to handle repairs/maintenance. Besides, they have more character than newer homes.

Due diligence showed that the tenants all paid on time every month and since we closed on 10/31 I can confirm that all have paid by 11/1 (minor victory and damn it felt good to see that first bit of cash flow).

It's going to need a new front porch (spring) and some repair and painting to the soffits which I'd like to get completed this month.  Thats about it for the exterior.  Both the roof and the heating system were replaced within the last 5 years.  The foyer needs some minor patching, a cleaning, and a new paint job.  We are not going to do anything except some minor repairs in the apartments until a tenant moves out.  All are in live able shape and really could just use an updating.

Rents are somewhat under market and we will be raising them in the spring, once we've had a chance to show the tenants that we are fixing up the place (something the previous owner said they were going to do and never really did).

Thats it for now.. more to come as we progress.  Just happy that the first one is done.  The goal for 2017 is 6 additional units.

Congrats Frank, and that's great that you already have goals for the future!   I am working on my first duplex in Kingston right now and should have a fully executed contract in a few weeks! 

@John Weber , thanks.  Glad to hear you are locking up a deal in Kingston.  The city has some great areas, amazing history, and historical buildings.  It's certainly an area that I'm interested in expanding into eventually.  Best of luck!

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