Our first buy and hold offer accepted
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!