First time RE investor, long time BP follower.
I made the jump since I have a network (agent, gardener, electrician, etc.) in the neighborhood, the cash for the down payment, closing costs, and emergency savings for the house if needed.
House is section 8 and has a long time tenant in the property for years (~10yrs).
Type - 1980s Single Family, 4 Beds, 3 Bath, 2000k sq ft
Location - Lancaster, California
Purchase Price - $270k, paid w/20% down
Appraised - 288k
Rent - Section 8, $1850/month. Working on raising this with the housing authority to over $2.1k.
What do you think of my deal?
Some other questions:
• Does anyone have experience working with the housing authority and ways to increase rent with them? Ant best practices to consider?
• When is the best time for me to refinance on this property? I'm looking to purchase another one in a few years.
It really depends on your goals and plans for the property. If you feel this property is in the path of growth and will appreciate much faster in that area, it could be a great deal. If you live out of town, this could be a great deal. Maybe you have stellar seller financing terms. Unfortunately, from what I read I don't think it is....atleast not for me. If you bought it to live in you can get away with putting only 3.5% down and move when you need something bigger. Also, the numbers seem kinda low. Section 8 pays above market rents to where it's kinda common to find houses on redfin that cash flow $500+ with a small down payment. It's great you started and should make some money, but if you're looking for cash flow I think the cheapest house with the most bedrooms is the best way to go. Even the nicer areas can cash flow well out here too. Good luck on your journey! The first step is always the hardest.