New & Just bought 1st property
Hi everyone!
I am new to this site; from the Houston area. I have been poking around the site for a few weeks now. I have no clue what I am doing but from reading all the post I have found my motivation to jump into the deep end regardless of the outcome. I just closed on my first property today and thought I would share a little. I am not too well versed in the number aspect of things but the price and all things considered it seemed like a no-brainer to me.
I closed today; total out of pocket for the property was $23,675.63
ARV: Who knows, I did not really care to find out. I know what I can get for rent and that's what I'm interested in. Yes, yes, yes … It is good to know because I may change my mind and decide to sale, ect.
I do know it is worth way more than I have invested.
Repair Cost: ? $14,000
New roof, tile floor throughout, AC serviced, ect…
Soooo….. I am walking the property out thinking to myself what I should repair and what I should just paint over. I would like to make the house a nice rental and not just be another slumlord. My wife is helping me and she keeps asking me the whole time if I am crazy. She told me if I make the house nicer than ours she’s moving in the rent house (IT’S A RENT HOME, YOUR NOT SELLING IT!!!!! OK, OK, OK, yes dear I got it). Then a couple walks up to the property and ask us if we are the new owners and if we would be interested in renting the house. I show them around the home and they absolutely love it. I called around and my mom knows the couple. They have been renting a home in the area for the last three (3) years and are looking to move because their rent home is in very poor condition and the owner will not make any necessary repairs (exposed wires, bath has rust holes, ext). I call the couple back and we agreed to $700 a month; same price as their current hellhole.
So to recap:
Total cost after repairs: $37,800 (I hope)
Rent: $8,400 YR
Tax: 2,000 YR
THE PROPERTY:
http://www.tdecurealestatelistings.com/property/112-1ST-ST-HOLIDAY-LAKES-Texas
·MLS: 78865264
·BEDROOMS: 2
·BATHS: 2
·PARTIAL BATHS: 0
·SQ FT: 2092
·LOT SIZE: 0.5016
·TAX: ? $2,000 year (I know I got credit for 4 months @ $612.37)
I HOPE IM OFF TO A GOOD START??????