Purchased my first property!

Investor · Playa Del Rey, CA · Member since 2016 · 51 posts · 46 votes

I just purchased my first property ever thanks to BiggerPockets! It's a B-class duplex in Texas that needed very little work to be ready to rent. Purchased it for $194k and closed my funding on June 1 and put up ads for rent. By June 3rd we have applications for both sides at the rent I was asking with some potentially great tenants. Gross income is $2400, PITI is about $1200. After debt & 8% capex/maintenance & 8% maintenance, the cash flow comes out to a little over $800/mo. All utilities are metered completely separate and tenants are taking care of the small yard. Super excited!!

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Allen Fletcher

Investor · Colorado Springs, CO · Member since 2015 · 252 posts · 131 votes

10y

@Gabriel H. Congrats! I hope it all goes well. How did you finance the deal? What is your next step?

Regards,

Allen Fletcher

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Allen Fletcher
Investor · Colorado Springs, CO · Member since 2015 · 252 posts · 131 votes
10y
@Gabriel H. Congrats! I hope it all goes well. How did you finance the deal? What is your next step?
Regards,
Allen Fletcher
1 Reply
Rodriguez VictorPro Member
Eagle Pass, TX · Member since 2016 · 17 posts · 5 votes
10y
congrats
0 Reply
Rick Dimicco
Mount Pleasant, SC · Member since 2012 · 11 posts · 5 votes
10y
@Gabriel H. You're off to a great start. $800/month in cash flow is awesome, especially for your first property. How long did it take to put the deal together from the time you first learned of the property? Diito Allen's financing question.
Rick
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Tzvi BalsamPro Member
Investor · Brooklyn, NY · Member since 2016 · 226 posts · 45 votes
10y
on the right track!!!!!!!!!
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Gabriel H.
OP
Investor · Playa Del Rey, CA · Member since 2016 · 51 posts · 46 votes
10y
correction on my original post. 8% maint/capex, 8% vacancy.
Thanks all! I financed using a conventional loan. 25% down at 4.35%. From the time i first analyzed the property till close was a little over a month. But i had already made several offers on several other places before i found this one.
My lender tells me he can fund me again immediately, but i'll probably hold off for another 6 months unless another great deal comes up. So my next steps would be to start over and keep looking for more deals!
2 Reply
Adrian Luna
Fort Worth, TX · Member since 2016 · 39 posts · 3 votes
10y
Nice first property and 800 a month cashflow sounds awesome keep it up
0 Reply
Mindy JensenPro Member
BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
10y
@Gabriel H., how did you find this deal?
[email protected]Podcast Guest on Show #261
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THU NGUYEN
Investor · Sugar Land, TX · Member since 2016 · 109 posts · 46 votes
10y
Very nice CF. I am curious, do you fly to Texas looking at property before buying? or you work do everything via local RE agent?
I want to venture out of state but wonder how others are doing it without actually being there.
0 Reply
Nikolas Ferreira
Flipper/Rehabber · Boca Raton · Member since 2015 · 231 posts · 81 votes
10y
@THU NGUYEN living in texas why do you want to venture out of state? texas is a great location for any size($) investment you might be looking to make.
sorry if question is none of my business please tell me that. :-)
0 Reply
THU NGUYEN
Investor · Sugar Land, TX · Member since 2016 · 109 posts · 46 votes
10y
Hi Nikolas Fereira, just wondering if there is better CF outside of TX. You know how our property tax is so high...maybe there is another state that property tax is cheaper?...Lol
0 Reply
Mel K.
Investor · Bradenton, FL · Member since 2012 · 25 posts · 6 votes
10y
@Gabriel H. Congrats on the new purchase! Awesome CF! Might I ask who your lender is? Local Texas lender or a larger national lender?
1 Reply
Login George
Belleville, NJ · Member since 2016 · 46 posts · 19 votes
10y
@Gabriel H. Congrats Gabriel! That's a big step!
If I may point this out. Do you think an estimate of 8% is enough for both maintanence and capex together. I would have estimated 10% for capex and a separate 5 % for monthly maintanence. Also, any sewer, trash, garbage or water expense that needs to be considered?
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Bola A.
Rental Property Investor · Houston, TX · Member since 2014 · 146 posts · 35 votes
10y
Big congratulations! Where in Texas? Who is your lender?
0 Reply
Ian Tudor
Specialist · Charlotte, NC · Member since 2013 · 260 posts · 245 votes
10y
@Gabriel H. congrats on the step to action.
how did you find the deal?
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Gabriel H.
OP
Investor · Playa Del Rey, CA · Member since 2016 · 51 posts · 46 votes
10y
@Mindy Jensen thanks! Found it on the mls
@THU NGUYEN - i flew back to walk it during the option period. Also had an inspector pass it with flying colors. Offer was made site unseen. My local agent, who's also a buy and hold investor, walked it for me prior to the offer and gave me the thumbs up.
@Mel K. - lender is first united. Not a local bank, but definitely not one of the bigger ones either. Worked with a great broker. Pm me and i can send you a referral.
@Login George - thanks! The roof is brand new, and the hvac is midlife and the slab is in good shape. The only appliance i'm providing is a stove, which is normal for the area. I went with 8%/8% because thats what other investors who buy similar properties suggested. All utilities are metered separately and handled by the tenants, as is lawn care.
@Ian Tudor - thanks! Found it on the mls
1 Reply
Account Closed
St Petersburg, FL · Member since 2016 · 4 posts · 1 vote
10y
Congrats! That's incredible you already almost have tenants! sounds like this ones going to be a winner! Keep it up!
0 Reply
Gabriel H.
OP
Investor · Playa Del Rey, CA · Member since 2016 · 51 posts · 46 votes
10y
thanks @Account Closed! Wouldnt have happened if it werent for bigger pockets. This is an incredible resource for those of us whole would otherwise be intimidated by the idea of investing in real estate.
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Jack T.
Investor · Los Angeles, CA · Member since 2016 · 72 posts · 14 votes
10y
That's awesome! So are you based in SoCal and buying in Texas?
0 Reply
Gabriel H.
OP
Investor · Playa Del Rey, CA · Member since 2016 · 51 posts · 46 votes
10y
@Jack T. yes! Live in playa del rey but originally from texas
0 Reply
Jack T.
Investor · Los Angeles, CA · Member since 2016 · 72 posts · 14 votes
10y
Nice!
0 Reply
Justin S.
Investor · Jackson, OH · Member since 2014 · 64 posts · 20 votes
10y
Congratulations @Gabriel H.! Sounds like a fantastic setup for a first property!
0 Reply
Hac T.
San Diego, CA · Member since 2016 · 6 posts · 10 votes
10y
Congrats @Gabriel H..! You are exactly where I hope to be soon! I myself am also from California looking to invest in a Texas property. Can I ask you what brought you to the specific area you eventually purchased from? Is it somewhere you've lived before and you knew it was in a good neighborhood? I ask because, frankly, I dont know where to start looking in Texas. Any suggestions?
1 Reply
Adrienne Greer
Forney, TX · Member since 2016 · 9 posts · 2 votes
10y
@Gabriel H. Congratulations!!!!! How did you get access to the mls?
0 Reply
Mel QuiroaPro Member
Pico Rivera, CA · Member since 2016 · 29 posts · 8 votes
10y
Awesome! Congrats on the first deal.
0 Reply
David Cowan
Investor · Twinsburg, OH · Member since 2014 · 111 posts · 41 votes
10y
That's great, Gabriel H. ! Congratulations!
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