So after six to seven months of education mainly through Biggerpockets forums and podcast and oh YouTube, am finally having my first closing on an investment property October 10th. I listen to podcast when I am driving looking at properties. My deal is as follows and please because am in very serious about this path I am on now , I want all the advice, criticisms and any comments to help me get there.
And I got deal through Homepath with Homepath financing.
Accepted price 53000 . Property located in a B- but its a new development by Great Southern homes that built ten homes to revitalize the area so many don't even know that neighborhood exists. So it went to auction.com since it didn't sell on homepath website.
Closing cost 6936
PITI with all escrow 624 @6% 30yr fixed
Rent is 1050
Property management 100. But not using it now since I want to learn and know what to expect when I do have them.
Capital expenses: 100 a month, being conservative since building is less than 6 years old.
cash flow 226.
Building is next to downtown and near a major hospital and I have already had three nurses interested in renting it ASAP. Its in a cul de sac and have three families owning there and its a mixed race families. Two military families and two state workers.
The great thing I think is that two properties that just completed building sold last two months for 110000 and they were only 50sq ft bigger than mine. I kinda want to think I am buying this property with great equity. Inspection done shows I may spend less than 1500 to make it a wow rental place. Inspector does appraisal and appraised unofficially for 90000.
Its finally happening guys and I can not thank everyone enough.
Please any comments are gladly welcomed!!!!!
ANOTHER DEAL : Needing private money.
I do have any deal but i don't have enough funds to go in now. Its a property in B- neighborhood, comps for area are all above 80000 but property is being sold by a guy relocating and want to do the 1031 exchange. Last appraisal shown by owner was 75000 done three months ago. Its 40000 cash and has a section 8 renter who have rented for over 12 years, city pays 650 on the first of month directly to owners account.Owner hardly get called about anything. I toured the property at lunch time since it next to my hospital and its not bad at all. Its all brick and in a very quite neighborhood. I just dont have 40 000 cash but will interested if anyone will want to do private lending to help me get this deal. I was thinking 40000 all cash and can do refinance cash out after six months to pay 40000 with 8% interest. Any help will do guys. Thank you.
Using a 50% expense ratio I get a 10.5% cap rate. With a 6% cost of money that gives you 4.5%. I want at least 3% on all properties. Congratulations. You seem to have a winner as a buy and hold as will as a buy and resale. If the timing was right you could resale and buy the next property.
Congrats on the first rental. By the way, did you ask if the owner of the second property would finance your purchase?
thank yo @Bill Jacobsen yeah I think it's a good start with that numbers. I want to hold on it for sometime perhaps a year and then get a heloc which I intend to buy a multi family in a year.
@Leon Yang yeah he actually has two houses which I had my realtor perform comps and they both came out to 75000 each and he the seller is selling them for 39000 each. Am trying to get private money to buy one then do a cash out refinance in a year to pay off Private money. He did say he may consider seller on one property if I buy the first.
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