I just bought my first rental property and I think I did pretty well, but you tell me...
I bought a HUD owned SFR for $40k. ($30k financed on a 20 year loan with $10k down at 4.24%) I spent another $10k on closing costs and rehab, doing most of the work myself. I have basically put about $21k of my own cash into the house up to this point.
I just got a renter in using a reputable property management company, they take 8% of the rent plus half of the first month's rent for tenant placement. The tenant signed a two year lease at $850 per month, and my mortgage, insurance, and taxes come to $365 per month.
How did I do? Did I put up too much of my own cash? I feel like it was a good deal but it will be about 5 years if things go extremely well before I recoup that cash.
@Doug Omenski I think those numbers look pretty good on the surface. Of course in a property that cheap, Ive got to think your repairs are going to be a higher percentage than in a more normalized priced property. But I think on the surface it looks really nice, especially for your first deal. Congrats!
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