Alright guys, I completed my first deal. The numbers looked a lot better when I started but I ended up with a cash ROI of 8% and a total ROI of 11%. Renter in the home for $1600/month and mortgage payment of $950 (including taxes and insurance). Im saving about $300/month for repairs/vacancy/capex and Im cash flowing about $350. I went the way of conventional financing with 20% down and I sef-funded my repair cost. Im kinda bummed out because I know most investors are looking for over 20% cash ROI and over 30% total ROI. I think the property is solid in a good part of town and a great rental area. Should I view this as a failed first investment?
@Matt M. , you absolutely should not view this as a failed first investment because, well...you did it. You didn't just plan and think about it, you jumped. Plus, you're making (in my view, anyway) a pretty decent return. So good job getting in the game, and congrats on the positive cash flow. Give us a yell if we can help with anything; lots of good folks here. Good luck and happy investing!
This is a smashing success! San Antonio is HOT!
Thanks Guys and Gals. I appreciate your support. Hopefully this is my worst deal and it is only up from here!
@Matt M. , keep up the good work. We've got an informal monthly get together next week if you'd like to drop in, we tend to have some buy and hold folks; check my profile if you're interested. Congrats again!
Good Job!! See nothing as a failure, but experience gained for your next one.
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