Our first buy and hold offer accepted

10 Replies

Good Morning All,

Last night our Realtor called us at 8:30 and told us our offer was accepted by the the seller. This will be our first buy n hold. 

AWESOME!

SIDE NOTE: Not sure if @Joshua Dorkin  and @Brandon Turner have a deal with higher powers, but it just so happens that last Friday after about 2 and a half months of binge listening to the podcasts 5 days a week at work and on my hour long commute to work I finally have listened to all 115 shows. Now we get our first deal under way, kind of fishy. 

The 3/2 bilevel was not even on the market yet. She had a seller about to list and told us about the SFR. The market here in Colorado Springs is super hot right now, so we jumped on it. I don't believe that we got a screaming deal but if I ran my numbers right this will be a great cash flow place. Note: an identical SFR Down the street just went under contract last week for $174,900.

The value add to this place will be when we add a new kitchen,it is a small one so I will do it myself and per my wife/boss on a strict budget. We will update all of the interior doors and paint inside and out. Refinish the oak floors, tenant proof them. Roof is 2.5 years old, thanks Colorado hail. Other than that we should be hitting the prime rental season when we are done.

Now I believe the fun begins.

The numbers are as follows:

Offered price: $155,000

Financing: Conventional with 20%-25% down: $31,000-$38,750 

Loan: $116,250-$124,000

Taxes approx. $850

Ins $80-$90

Vac., Repairs, @ 2%

Cap Ex @ 5%

We will self manage but we figured in 10% for Prop Mngmt.

Rents in the area for 3/2 SFR are ranging $1200-$1400.

I used the Rental Calculator and I am not sure if I  missed anything, if I did please let me know, but we should cash flow $343-$378 per month.

I will update on this thread as the deal progresses. Time now to call my mortgage broker..

Wish us luck!

Congratulations and hope it brings profits down the road!

Congrats!  Warning*!*  Passive income can become addicting. 

Congrats! Warning*!* Passive income doesn't seem very passive when your addressing a flood at 2:00 in the morning!

Congrats @Andrew Emery ! This is super exciting. Feel free to send over your PDF report of the property and I'm happy to share my thoughts!

And yes, Josh and I have been waiting for you to hit that 115 number and then I called up the seller and ... encouraged... them to accept your offer. ;)

Congrats!

@Andrew Emery

Congratulations and wish you much success! Now just rinse and repeat! Good Luck

Awsome!

Thanks everyone for the well wishes. Unfortunately yesterday the inspection didn't turn out so well. It cost us about $500 for the sewer scope and home inspection with radon. Money well spent though, because now I know what to look for even before submitting and offer. Also it kept us from buying a pig that would have required plastic surgery not just lipstick. ????

I'll keep posting as we keep trying. 

Thanks everyone for the well wishes. Unfortunately yesterday the inspection didn't turn out so well. It cost us about $500 for the sewer scope and home inspection with radon. Money well spent though, because now I know what to look for even before submitting and offer. Also it kept us from buying a pig that would have required plastic surgery not just lipstick. ????

I'll keep posting as we keep trying. 

Thanks everyone for the well wishes. Unfortunately yesterday the inspection didn't turn out so well. It cost us about $500 for the sewer scope and home inspection with radon. Money well spent though, because now I know what to look for even before submitting and offer. Also it kept us from buying a pig that would have required plastic surgery not just lipstick. ????

I'll keep posting as we keep trying. 

@Andrew Emery

 Great job listening to all the podcasts. And good job taking some action steps. Sorry you didn't get your first one, but you're learning as you go. Keep going with persistent action and you'll find the first one.

One of the questions I had is why you had vacancy and maintenance in at 2%. I assume that means 2% of gross rents. It seems a bit low to me. Where did you come up with that number?

Mike

Get the Ultimate Beginner's Guide

Sign up today to receive the popular eBook for free!