Whats the story of your first deal?

Question

What's the story of your first deal?

I need motivation and inspiration. I've dug myself out of credit card debt and fixed my credit score. Plus I've been saving money.

Scott E. · Answer

My first 'deal' was a house hack in South Scottsdale about 11 years ago. I bought it for $179k with an FHA loan. It was around $9k out of pocket to buy the house which is about everything I had to my name at the time. Lived in it almost mortgage free for 5 years, and then sold it for a $130k tax free profit!

Jaron Walling · Answer

@Juan David Maldonado About 4 years ago I said enough was enough. I cut consumer spending, sold my favorite motorcycle, and paid off my car. Less than a year later I bought a live-in-flip and lived in a construction site for 5 months. Used a conventional loan, 3% down, and paid cash for the rehab. It was transitioning from C class to B/-A properties. After 2 years I did a cash-out refinance (pulled most of my money), moved out, and rented the property.

Sounds like you're making the right moves. Take your time, do the market research, talk to people smart investors, and it will pay off.

Conner Olsen · Answer

I bought a duplex house hack in Austin, TX in November 2020. The mortgage is $2,250 and the gross rent was $2,400 fully occupied on LTR. I found out about medium-term rentals and decided to go that route. I was living in one side and renting out the other for $2,700/month. Just moved out and getting my side rented out and should gross $3,000/month and make a net cash flow of $1,500-$2,000/month.

Kerry Noble Jr · Answer

I didnt have much credit card debt but I worked on student loan debt and fixed my credit as well.......

my first deal was a wholesale deal....it took me 14 months to get my first deal......i only made 500 but thats all that i had in my whole operations....

Aaron Gordy · Answer

I bought a duplex zero down while attending grad school at UT. The rent from the other unit offset my living expenses. Bought it for $80k and sold for around $440k. First deal

Mike Dymski · Answer

I bought a live in flip for $130k in a transitioning neighborhood, fixed it up some myself, and sold it years later, tax free, for double that amount.

Derek Wheeler · Answer

Juan congratulations on digging yourself out of the bad debt and fixing your credit score! Thats going to be really helpful getting approved for a loan if you decide to go that route for your first rental.

I spent about 2 years reading/listening to podcasts before I got my first deal. I eventually found a great deal on the MLS and asked a family member if they wanted to partner up on it. Since I found the deal and negotiated the price, they helped with the capital for the purchase price and rehab. I ended up making about 35k on it and used that to buy 2 rentals! I believe its all about momentum, it will always be scary getting your first deal but once you get the first one out of the way, you learn so much from the process and become even more motivated to keep moving.

Alecia Loveless · Answer

@Juan David Maldonado I bought a 3/1 for $99,500 in 2020 that needed “cosmetic repairs”. As we got into it we discovered the inspector missed wiring issues and it needed insulation throughout besides it’s cosmetic upgrades.

Fortunately all in I put $34,000 and now have it rented for $1600 a month. Two years later it’s worth at least $249,000 according to my Realtor but similar homes on the MLS are listed at $349,000.  I’m about to refinance it to use some of the equity on another project.

Alecia Loveless · Answer

I originally got financing through a loan from a family member who was interested in earning more interest in some money they had sitting in a bank. Then when I sold my business I paid off that loan and the home has been mortgage free for a while. Due to an unforeseen expense coming up on another property I am in the process of now refinancing it and will still be cash flowing about $500 a month once the new loan is in place.

Conner Olsen · Answer

@Juan David Maldonado I'm in North Austin near the Domain.

Whats the story of your first deal?

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