I closed on my first investment property just last week! I had been searching for a property for close to a year before finally getting this one. It will be a buy and hold property; it is a 3 bedroom ranch that I will be adding a 4th bedroom to in the basement. The work should begin on the house soon and I'm hoping to have it ready for a tenant in 3 months.
My long term plan is to add a single family home every year, of course until I'm able to afford to add more than one a year :). Hopefully I will have a success story to share in a few months. I have previously rented out a condo that we lived in (accidental landlords), but this will be my first purpose bought investment property.
I can share the numbers I have so far. I purchased the property for $51,000. I financed the property for 20 years and put 25% down. I'm anticipating the rehab to cost about $12,000. There are a 3 bedroom properties in the area renting for $$850-$950/month so I'm expecting something in the $950-$1050 range for rent. My PITI (princinple, interest, taxes & insurance) are right about $430 a month so I should hopefully have some good cash flow.
I thought I would give a quick update on the property. I had to fix a couple minor plumbing issues in order to have the house re-inspected for the mortgage. This and waiting for my contractor to finish up another job meant the house sat idle for about 3 weeks.
Last weekend my contractor was able to start on the house with his guys. They demo'd the bath and kitchen, framed in one of the kitchen doorways (that was useless), extended the wall for usable cabinet space and started demo on the basement.
Kitchen before
Current Status: cabinets will now be able to wrap and follow the new wall
Basement Before:
Current Status (Forgot to get the pad lock off the garage door for them to get this stuff to the dumpster, whoops)
We'll see how things go this weekend. I'm trying to stay ahead of the game and make sure I have things ready for the guys to keep working uninterrupted, I've managed some big constructions at work but this is the first time doing something like this for myself. All I know is I'm glad I talked myself out of doing the work all myself :)