Newbie First deal 45k in equity and 38% Cash on Cash Return!
Bought my first investment property, closed and had it rented within a month!
I found this deal "Driving for Dollars". I was just driving around trying to learn more about real estate look at homes for sale and get a feel for what things are worth and then I ran up on this house. It was a for sale by owner and extremely underpriced. They're where multiple homes in the same neighborhood selling for a lot more, in similar condition and less sqft. So I did my research, quickly, and jumped on the opportunity and closed on the home in 16 days with conventional financeing. Also no rehab was needed! This is what the numbers look like.
Property Value: $250,000
Asking Price: $210,000
Purchase Price: $205,000
Down Payment and Fees: $16,500 or about 5%
Monthly Payment: $1593/month
Loan type: Conventional
Term: 30 year
Interest: 3.75%
Rent: $2400/month
Cash Flow: $800
Cash on Cash (COC): 38%
The COC Factors in 1 month vacancy and $2400 in yearly expenses. Thanks for reading! Feel free to reach out if you have any questions!