First deal is closing today! Let me know how you think I did!

51 Replies

Kyle- sounds good, that's how I use my HELOC. I started with one property like you now I have 4 rentals paid off and cash flowing $3,000/per month.

Nice deal based on the numbers. However investing is MORE than just the numbers. Listen to my podcast to learn more:

@Mark McKibben   Thats awesome and exactly what I hope to work towards. How long did it take you to pay off those properties?

That sounds good to me! Congrats on your investment. I hope it turns out to be a great one :)

Kyle- about 3 years my average home price is $40,000 to$49,000, that will get you a starter home in a good area that will rent for $725/mo. in my area. I used all rental income to pay down debt it's my retirement account :) I'm a full time real estate appraiser.

Sound like a great deal Congrats!

Congratulations on your first investment property!

@Kyle Kelley  From all the information I have read above it looks like a very good deal. Congratulations on getting your first deal under your belt. 

sounds solid. Although maintenance figures are low. But still a good deal. Remember this, a good PM is worth it. They at least for me have been hard to find

@Micheal Rieves @Christina R.    @Mike Moles @Roderick Walker Thank you!

@Teal Lambert Excellent advice Teal, and definitely noted. I have no problem adding to the maintenance figures (for capex in the future) and reducing the true cash flow as all cash flow for the initial couple of properties will be going directly to creating bigger reserves per property and down payments for future leveraged properties. 

I have researched and will continue to research good PM individuals/companies in the greater Cleveland area to rely on for future deals

Congratulations @Kyle Kelley on your first deal, I hope there are more to come.

Thanks @Vince Beusan !!

By the way, love Laguna - the wife and I visit every year and stay at Casa Laguna Inn , best weekend of the year no doubt!

Congrats @Kyle Kelley   on your first deal.  I am curious how you came accross the property since your info states California as your current location.  What made you decide to purchase in this location?

Dude! I'm inspired, you did it in California!!!  Thanks for sharing.

how did you find this deal?

Originally posted by @Aaron Montague:

@Kyle Kelley  

Congrats on your first purchase!!  Welcome to the investment property owners club.  Your secret handshake is in the mail...

Your numbers look solid.  The one thing I don't like is the amount you've budgeted for maintenance/repairs.  I use $150/month/roof minimum. 

Over 20 years you are going to go through a roof, a furnace and 2 water heaters.  You are also going to see a number of small items bust, break or simply fall apart.  Make sure you have enough in reserve to pay for all of those items when they show up.  If you have a chunk of money left in the pot when you sell the place, all the better.  

TD Bank should be willing to write you a mortgage on the place.

 So Aaron, if I understand you right you use in your numbers for a unit, $150/month for capital type expenses, is that correct?  I've been playing with some numbers on properties and never quite new what to plug in as a realistic number for that category.

Kyle, seems like a good first deal.  Congrats man.  

@Chris Vail   I am originally from Ohio, not too far from Cleveland where I am investing, so I have some familiarity with the area, and the price point is right for me at this time. 

@Elijah Artman   Technically yes I am in California but the property is in Ohio, but sure Ill take credit for doing a deal "from" California! Thank you!

@Kyle Kelley  

Well, Looking at your numbers the COCR is around 8% (NOI 2400/30,000 down-payment). I think that's a great way to start but 8% seems decent and has a low maintenance costs associated with it. As long as you are comfortable it would work for you.

@Kyle Kelley  Thanks for the response, so the gensus for picking the area was the fact that you grew up near by and know the area.  Do you have local connections that stem from your time living there or have you set that up via long distance business over the phone/email.  

@Chris Vail

Correct. I do have some connections in the form of friends and relatives living there but none directly related or tied to RE. All the research and connecting I have done myself via telephone and email as well as relying on reviews and referrals from those people I've created relationships with in the area, again from a far.

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here