Closed on my first deal!!!!!
I could not be happier sitting down to write this post!
It has been about 9 months since I started listening to bigger pockets and finally on August 6th I closed my first long distance deal!
A little bit about myself. I’m 24 years old and referee hockey. Every season from September-May I live in a league supplied house somewhere in the Midwest (from Jersey) and referee hockey. Well it was last year I got the idea of buying a house and having the league rent from me.
I hit a ton of snags a long the way and the worst being financing. I got turned down 3 times from financing and I was really discouraged. I had 75k in cash but since my job paid me in 1099's no bank wanted to lend to me. So I finally brought in a partner and with both of our assets we got approved!! We put about 9 offers in until we finally got one accepted for a 4/2 1500 sqft in MN for $220,000. We went back and forth in inspection because there were some things we mentioned we wanted addressed. We finally got the house for $217,500 and $4,000 towards closing. It was suppose to be $6,500 in closing costs but the bank would only allow $4,000 since it was an LLC loan. So we just came down on price.
The best part of this deal is that the hockey league has been committed to living in my house since day one! They move in September 1st and I don’t pay my first mortgage until October 1st... I love that part.
This is already a cash flowing machine :)
I couldn’t be more thankful for everyone at bigger pockets. I couldn’t have done it without this place. I’m so excited to start looking for my next deal!
Here’s where I have a question. I had to put 25% down to acquire this house, tying up a lot of capital. The league mentioned they want another place for next year but I was thinking of pulling some cash out? It appraised for $228,000 and this week we are also closing off a wall and making it a legal 5th bedroom. Any thoughts on how I could finance my next deal? Ideally my goal is to get two more places by the end of 2020.