Closed My First Deal - Duplex
I finally get to post a success story after years of tire-kicking and hemming and hawing.
I closed on a duplex yesterday that will allow me to live for free with a roommate once I do a few cosmetic repairs and get the rents up to market rate.
For anyone who can't seem to get their first deal done here is what I did:
1. Set a due date. Last December I decided I was going to close by May 1st.
2. Decide on criteria. Live for free? $300/door? Buy 20% under market value?
3. Decide on property type. Location, condition, number of units etc.
4. Figure out what is holding me back. The big thing for me was nailing down expense estimates. I couldn't analyze properties because I went back and forth on expense estimates. A home warranty plan really helped me dial that in.
Once I removed these barriers that had me moving in 10 directions at once it was easy to look at properties and give the thumbs up or thumbs down.
I got the best commercially available financing in the world, the American Dream Loan through US Bank. Its 3% down, 30 year fixed rate with no PMI, and its a portfolio loan so its not subject to FHA requirements. It has to be your only property when you buy it, your first property, or you have to sell whatever you currently own so its your only property when you buy it. If you have any questions about this loan contact @Conor Hesch. He is amazing and he will go to bat for you to make sure things get done.
I also had an amazing realtor @Tim Campbell. Both Tim and Conor are investors and they were my dream team. If you don't have a great realtor, get one. Or just call Tim, he is overqualified to help find you a duplex, or flip a house or spec-build, or anything else.
My profile has said Investor for about 2 years now. Ive finally earned it.
Thanks Tim and Conor.
Congratulations, Jake! Great work finding a low-money down loan with NO PMI! That's a huge benefit. Good luck on your next purchase!
Congratulations, @Jake Hartnett! I'm looking to start investing in some SFRs, some of your tips are helpful with regard to deadlines. I currently own a townhome and rent two of the bedrooms to friends, I live in the remaining bedroom. You'll really enjoy it, I'd do it all over again.
-GDB
congratulations i also like the deadline plan. Good luck. Can you buy another house with a different loan now and still keep that house?
@Scott Harper, Yes. You can buy as many properties as you want after you close on the first one.
@Jake Hartnett is overqualified to say the least!!!
Great tips! Congrats on that first purchase. I hope it is only the first of many!
Jake, Congrats - You have proved having a plan and strategy can result in a great outcome!
@Jake Hartnett as well on this deal. Glad I could help you on your 1st one! Many more to come!!
congratulations on your first deal
Way to go Jake. Now that the first one is done the rest should be easier.