My first rental investment deal

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My first rental investment deal

Brock Best
Rental Property Investor · NE · Member since 2019 · 15 posts · 2 votes

Ok so here’s my very first rental property deal. 

Purchase price $51,000

Single family home

3 bedroom 1 bath 1120 sq ft

$15,000 down payment I used with a Home Equity loan from my primary residence. 

20 year mortgage loan for $36,000 at 5.5%. Payment of $247.64/month.

15 year home equity loan for $20,000 at 4.99%  payment of $158.06.  

Total monthly cost of $405.70

Rent at $900/month

Net profit of $494.30/month

Plan is to use all profit to pay off home equity loan as quick as possible to use for next property. 

I also have a cash reserve account for any and all other expenses.

Also paid property taxes and insurance upfront.

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  • Travis DeForge
    Rental Property Investor · Wiesbaden, Germany · Member since 2019 · 49 posts · 50 votes
    7y
    Wow, what market did you find that in? That's a huge margin, almost 2%. I can't seem to find a neighborhood with numbers that good unless it has a crime rate that makes Aleppo, Syria look like Disney World.
    0Reply
  • Brock Best
    OP
    Rental Property Investor · NE · Member since 2019 · 15 posts · 2 votes
    7y

    I live in western Nebraska, US. Cheap living, very low unemployment rate. small towns with big industries. 

    0Reply
  • Ryan MahoneyPro Member
    Rental Property Investor · Hastings, NE · Member since 2018 · 57 posts · 53 votes
    7y

    @Brock Best

    Great job - looks like a good buy. Do you need to make any updates/repairs to the property? Does the rental demand market look solid for you?

    I’m in Hastings, NE by the way. Mostly rent to students from Hastings College here.

    0Reply
  • Brock Best
    OP
    Rental Property Investor · NE · Member since 2019 · 15 posts · 2 votes
    7y

    Hey not too far away. Railroad is picking up like crazy here so there’s a lot of demand right now. Not many of the new hires stay long, but some do. All I need to do to the house is a fresh coat of paint in the bedrooms and find some decent appliances. 

    1Reply
  • David Frost
    Bennington, NE · Member since 2016 · 15 posts · 6 votes
    7y

    @Brock Best that looks like a good good deal on the surface. Been trying to get a simalor 1st deal in Fremont, NE. But thoose number are all sowing up on properies that need $20K in fixup due to Flood damage. I want to stay away from flood damage and the new flood insurance rates. Im still looking.

    0Reply
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