Well, I actually closed on it on Friday. But I've been moving stuff all weekend.
New House Info:
Durham, NC 27703 in a large community with pool, tennis, etc.
3/2, 1400 square feet, 2 car garage
Purchase Price: 155K (2K in seller credits)
Total Cash to Close $10,200
Initial Repair Costs: $3000
Total Monthly Payment: $993
Projected Rent: $1400/month
Cash Flow per Month (After Maint. + Vac.): $200?
I will be living in this new house for a year, and then I plan on buying another one again. The house is turnkey but I plan on putting about $3,000 into it to put it in pristine condition and attempt to get rents up as high as possible.
My first property I purchased was a Duplex that I purchased in North Raleigh a year ago. I house-hacked for a year, and now moved out and have both sides fully rented out.
Raleigh, NC 27615
Purchase Price 180K
Total Cash to Close: $6000
Initial Repair Costs: $6000
Total Rent: $1870
Total Monthly Payment: $1143
Cash Flow per Month (After Maint + Vac): $487?
I plan on exploring more avenues as to how I can acquire properties FASTER! It seems like picking up 1 a year and using a low down payment is pretty simple, however moving every single year can become a pain. Hopefully I will have enough cash in the near future to start putting 20% down on places. If it weren't for having an extremely boring job once upon a time, and listening to podcasts all day at work, I would certainly not own two properties right now! Pretty much every real estate deal/decision I've made has been based on things I've learned on BP, or people that I've met... On BP! Shout out to @Michael Jobe for being for being my real estate broker.
Great work man! I got excited for you just reading this. I am still a newbie absorbing as much info as possible but this post was very encouraging!!!
Hey @Keith Nelson congrats! Must feel pretty good to get another one under your belt. Keep up the good work and don't stop buying just because you hate moving. Work on that day job salary and start rolling that rent money into the next 20% down.
Congrats! Tough to find good deals in NC these days, but they're out there!
Great work. Just curious were these deals purchased with seller financing or subject to?
@Mike Foley the duplex was purchased with FHA, and the single-family with conventional financing
I have a question- When you're calculating 2% or 1% for rentals....do you just use purchase price or total cost to close?
This hits about 1% with just purchase price (155k)
But if you include total cost to make it livable and purchase its closer to .08 (168k)
Nice work, Keith! Did you find your properties on the MLS or wholesaling?
Hey @Keith Nelson - what neighborhood is you Durham property in? I live in 27703 as well, so I'm just curious.
Congrats !!!! Did you buy through a realtor or direct from seller.........I want rehab flip properties in the Bull city just need a heads up on good locations @Keith Nelson
I used a realtor
@Natalie Kolodij In my opinion, you should calculate the total net cost of the purchase ($155,000 - $2000 in Seller Credits = $153,000) + Total costs to get in move in ready ($3,000). Also, the majority of those closing costs are the 5% I put down and I now "own" 5% of the property.
Finding 1% deals in the Triangle area is hard enough as is. Finding 1% deals which I personally wouldn't be embarrassed to live in for a year is even harder. The deal isn't quite at 1% based on my calculations, you're right. Property taxes here are also like 1.3%, so lower than a lot of other areas of the U.S I'd imagine... But the Raleigh (and even Durham market) can be tough to hit those 1% and 2% rules.
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