Closed my first deal last week. Pictures!

12 Replies

So this property was a VA foreclosure listed for $96,900 3/2 1400 sq ft house, dual cooled, 9500 sq ft lot, built in 1980. The carport was enclosed in 2008, but was listed on the MLS as unpermitted. I found the permits for the space, as well as the tax records showing that it was being taxed as a 1760 sq ft home.

Carport enclosure addition

I found the average sqft selling price in the area over the last year was $77. Which would make the house about $109k @ 1400 sqft (good deal to live in, not as a flip), but at 1760 sqft it is $135k. Now it needs some upgrades, bathrooms, and the kitchen especially - but the layout is good. 

Guest Bath

Master

Laundry room, large and lots of storage, floor to ceiling cabinets not pictured.

The backyard is very nice for this area.

I got it for $98k after a multiple offer situation. 20% down 15 yr 3.375% loan (I don't like paying interest very much). Payments are $710 a month (15 yr mortgage mind you, including insurance and taxes) and would rent for $925-1000 a month. I plan on staining the kitchen cabinets, adding draw pulls, and laying down new tile. The bathrooms would get new tile and vanities, with a double in the master and new shower.

There are 3 houses for sale in the neighborhood, with 2 under contract. One is 3/2 1238sqft with 7,800 lot for $129,900. The other is 3/2 1477 sqft with a pool for $155,000. If they close, that would make $105ish a sqft. 

This house I will live in for at least a year, and then rent out if I can find another deal.

That's a good deal, Justin.  Why not consider living in it for 2 years and then selling for a tax free gain under IRC Section 121 provisions?

Awesome deal! Keep us posted on how it all goes.

@Justin E.  

Congrats on getting your first deal.

Have you given yourself a budget for rehab?

What kind of profits are you aiming for when everything is all said and done?

Congrats, @Justin E. - pics look great!

Best,

Ryan

Very nice @Justin E.  

Thanks for sharing and congratulations on your first deal!

@Jon Klaus   I have thought of that, but I do want to get a few properties while taking advantage of the lower owner occupier rates. 

@Chris Vail I estimate $8k for rehab. I will do what work I can myself to keep costs low.

That's a beautiful home. Congratulations on your deal.

Congratulations on your deal and new home.

It looks like a great place to live.

I can't agree with you on the 15 year mortgage though.  With the same terms, you are spending and extra $209 per month.  When it comes to the rental, you are really going to wish you had that money coming in.  I recommend a refi to 30 year when you start renting the place.

Congrats on your first deal!