Any advice appreciated ! 1st time home buyer ever !

New Member Introductions
5yFollow

Any advice appreciated ! 1st time home buyer ever !

Nico Navas
Investor · FL · Member since 2020 · 14 posts · 8 votes

Just took my entire life savings & purchased an investment property all cash & I purchased under 50% market value . I need to put work into it as it is not renovated . However I immediately had an opportunity to house a tenant as is on a month to month lease. Any recommendations on what I should do next ? I am trying to buy & hold property . I also contracted w / a property management company since I do not live in Florida. Was this a good idea for my first property ? 

1Reply
11 views

5 Replies

Jump to latestLatest
  • Cherie Gatling
    Investor · Los Angeles, CA · Member since 2020 · 116 posts · 38 votes
    5y

    @Nico Navas Hi Nico! In all fairness, I am by far no expert. No matter what words of wisdom is offered here in regards to this post, I truly do believe you as an investor looking to make sounds decisions, your best friend is going to be disciplining yourself to understand deal analysis. Although now I’m sure you feel as though you’re pressed for time having jumped in, but DA may be a way to discover your best approach and options in terms of the next best thing to do now, as well as during market changes. Analyze for different exit strategies. As you are the only one who knows your personal goals, situation, financial strengths and weaknesses etc… and I’d like to add desired outcomes. I am a new investor. I think the greatest thing a new investor can do is niche down in deal analysis! Or at minimum, become reliant on such as fundamentals to success primarily to be the greatest asset to self, and to source good deals to other rental property investors if need be. I wish you the very best!! 

    0Reply
  • Steve SchulmanBusiness Member
    Real Estate Agent · Jersey City, NJ · Member since 2019 · 72 posts · 49 votes
    5y
    Originally posted by @Nico Navas:

    Just took my entire life savings & purchased an investment property all cash & I purchased under 50% market value . I need to put work into it as it is not renovated . However I immediately had an opportunity to house a tenant as is on a month to month lease. Any recommendations on what I should do next ? I am trying to buy & hold property . I also contracted w / a property management company since I do not live in Florida. Was this a good idea for my first property ? 

    What's the scope of work/rehab going to entail? Larger or smaller? Rehab or smaller cosmetic reno/upgrade? Do you have contractors lined up? How long will it take them? What's their schedule like? What are the tenants plans-- do you have a ballpark time frame for the MTM lease? Actually month to month or will they be there longer? These are all questions to ask yourself and variables to weight.

    Last thing you want is to not renovate/rehab or do what is necessary on the place now if it needs for example new boiler/water heater updated HVAC or electrical and then have to deal with it while a tenant is inside. I like to do all that is needed rehabbing mechanicals then touch up on the renovations (since I am already paying for labor), on the front end. Lower CAPEX, lower maintenance upfront, less headaches down the road.

    Vacancy now vs Vacancy later: What if the tenant only needs 2-3 months? Is it worth it? If it's a light renovation that will take 1-2 months probably not -- you don't want to have to worry about finding a tenant in the down/winter season. However, if it's going to take a few months to get the place right, I'd recommend signing a 6 mo. lease or at the very least have an idea of the tenants intentions/time-frame, so you can spend the winter days renovating then have a newly renovated unit for spring. I think you get the idea. Kudos to jumping right in! No better way to learn and I respect that.

    [email protected]732-439-4364
    The Schulman Group | Compass · VIP Team568 Reviews
    WebsiteView Page
    0Reply
  • Eric James
    Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes
    5y

    You don't want a tenant in there yet. You want to do a rehab, then refinance and pull equity out of it.

    0Reply
  • Zee Abbas
    Contractor · Brooklyn, NY · Member since 2021 · 64 posts · 57 votes
    5y

    @Nico Navas Without looking at concrete #s and the condition of the property, it’s hard to judge this deal. Generally I follow the “don’t put all my eggs in one basket” rule of investing. Nonetheless, since it sounds like you are a remote landlord, I think it will be in your best interest to spend time at the property, get prices from contractors and get work started in your presence. I would forgo the current MTM tenant, rehab and place a long term tenant for stable cash flow. Then you can borrow against extra equity if you wish to do so.

    0Reply
  • Nico Navas
    OP
    Investor · FL · Member since 2020 · 14 posts · 8 votes
    5y

    Thank you for all the responses i put all of your perspectives into thought and i will be offering my MTM tenant a longer lease or the option to move out so i can get this snowball rolling and BRRRR>>>>onward

    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free