Purchased My First True Investment Property (Multifamily)
I just closed on my first true investment property here in St Louis, MO. This will be my 4th property, but the first that I will not actually occupy for the first couple of years (active military). I hope to acquire at least one MFR/Year going forward. Here are the particulars:
Purchase Price: $62,000
Gross Monthly Rent: $1640
Monthly PITI (25% down at 4.89% on a 30 yr fixed): $480
Monthly Expenses: $853
Estimated COC: 16%
Estimated Cash Flow Per Door: $135
This is a C property in a C neighborhood. Hence, the returns might not actually be worth the future headache (vacancies, maintenance, etc.). Although, I have an amazing, albeit expensive, property management team and a have accounted for the higher expenses in my due diligence so hopefully that will reduce some of the strain. I'm still excited about the deal, but I'm realizing that I have to do better! The weekly podcasts are amazing, but every single time I listen to one, I learn about another mistake that I've made...
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Hi Frankie, I also live in St. Louis. Where is your property located? How did you find the deal? Who's your property manager and how did you find them? I will be looking at a first investment next year so just curious what other investors are up to in my area. You can send me a Message if you'd rather not post all the details on the forum. Thanks!