Finally took the plunge
After talking about it for years, my wife and I finally took the plunge and got our first rental (3/1 SFR). We bought the place off market from the property manager who is our neighbor. The place had tenants in it when we purchased it and they recently renewed their lease so I've got them for at least the next 9 months. Since we're new to this and we both have full time jobs, I didn't want to manage it myself so we negotiated with the seller who is the property manager to manage the property for the next 12 months at 5% versus his standard of 10%. The inspection came back with one electrical item that the seller fixed.
List price $50,000
Selling price $48,000 (unsecured LOC @ 4.5%)
Seller paid closing costs and electrical item noted on inspection
Lease and security deposit transferred to us
Property management fee discounted to 5% of rent for 12 months
Ten day close
Rents for $750 / month
Next up is to do a delayed financing transaction to replenish my LOC and move to my next deal hopefully within the next few months. It feels good to finally have get my first deal done.
Most Popular Reply
Wow Congratulations. Keep pressing forward. I'm ready to take the plunge as well but overcoming fear and information paralysis. I've learned that my next step is to locate a hard money lender ...just not sure what questions I should ask or what is considered a good and bad deal from a hard money lender.
Let's Get It!