Closed on house number seven today

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Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes

We closed on house number seven this morning. It is a nice 3 bedroom, 2 bath, 2 car attached garage home built in the early 80's. I would say it is in a B+ neighborhood. It is 2 blocks from an elementary school. Purchase price was $137K and it will rent between $1100 and $1200. Not a get rich quick deal, but we should be able to place a nice tenant who will stay there for years. Tenant will pay all utilities and handle lawn/snow. It should run on autopilot once we get someone in there. We got a 30 year conventional and expect $300 per month cash flow.

We name all our houses by the street they are on, so welcome Holbrook our buy-and-hold portfolio! Now we need to go crazy getting it rent ready to start showing Monday.

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John Van UytvenPro Member

Property Manager · Oconee, IL · Member since 2014 · 536 posts · 202 votes

10y

@Joe Splitrock

That's awesome.

Congratulations on your new baby.... house is what I ment.

What happens when you buy a new property on the same street? Do you go with Holbrook JR. or Holbrook the Second?

How big of a company are you planning to grow?

Congratulations and keep up the great work.

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John Van UytvenPro Member
Property Manager · Oconee, IL · Member since 2014 · 536 posts · 202 votes
10y
@Joe Splitrock
That's awesome.
Congratulations on your new baby.... house is what I ment.
What happens when you buy a new property on the same street? Do you go with Holbrook JR. or Holbrook the Second?
How big of a company are you planning to grow?
Congratulations and keep up the great work.
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Luc Boiron
Specialist · Toronto, Ontario · Member since 2016 · 564 posts · 425 votes
10y
Congrats @Joe Splitrock!
How much do you need to do to get it rent ready?
Do you have any pictures you can post?
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Account Closed
West Jordan, UT · Member since 2016 · 44 posts · 15 votes
10y
Contratulations on the great purchase @Joe Splitrock! Sounds like a solid investment.
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Account Closed
West Jordan, UT · Member since 2016 · 44 posts · 15 votes
10y
*Congratulations* typo :)
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Joe SplitrockPro Member
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Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
10y
@John Van Uytven we actually did buy a house on the same street and so we called them Cambridge North and Cambridge South. I don't think we can get three on the same street or our naming will get messed up. Our plan was to get to 10 houses and work to pay them all off. That would give us $10,000 in passive income per month and only ten tenants to deal with.
@Luc Boiron we have to do some paint touch up and probably four walls. There is matching paint there and the whole house is the same color accept the red walls in the kitchen that are getting covered up with tan. There are cleaning people there right now. It was really dirty more than anything. The previous owners were living out of state and renting it for $800 probably just to cover their mortgage. Other things needing attention included a leaky faucet, bad garbage disposal and we need to remove a whole house humidifier and water softener. Neither works and they are just maintenance issues to have around anyway. This is the listing picture, all the snow is melted to reveal piles of leaves, but no big deal. I love the shade trees even though falling branches can be a pain. I have a good tree guy :
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Joe SplitrockPro Member
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Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
10y
Originally posted by @Account Closed:

Contratulations on the great purchase @Joe Splitrock! Sounds like a solid investment.
Thanks!
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Courtney Cutrufello
Member since 2020 · 5 posts · 1 vote
5y
I bit late but Congratulations!
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Dmitriy Fomichenko
Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
5y
@Joe Splitrock thanks for sharing, wishing you much success!
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Joe SplitrockPro Member
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Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
5y
@Courtney Cutrufello and @Dmitriy Fomichenko thanks, this post is a blast from the past! A lot has changed over the last five years. We have grown our house portfolio from 7 to 13 houses. Three of those houses are A class houses built after 2000, so we are working to increase our quality.
I thought it may be interesting to provide an update on the house featured in this post (house 7). Five years later and the property is now worth $225,000. If I remember correctly, we paid $1000 over asking price on this house. Many on BP would consider that crazy, but a deal is a deal. I always preach that "asking price" is not value. You can pay over asking price and get a deal. Five years later and this $137K house is worth $225K.
We are on our second tenant in this property and the rent is $1350 per month now. The property has been low maintenance. We had to replace a 40 year old AC unit and a furnace blower motor. When it went vacant last year, we added an egress window to make a 4th bedroom. We also painted the outside and here is what it looks like now:
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