Updated over 9 years ago on . Most recent reply
First investment property purchase!
Perhaps some of you read my thread from several months ago about our "nightmare property" which was actually our primary residence for years. If you are curious, you can search for Nightmare property.
I don't really want to rehash all of that, but to put it in a nutshell, we were in a seemingly hopeless situation in what we thought was an unsellable house, but by working with an agent who knew the market and knew what he was doing, not only did we get out of the property, we actually walked away with a check for over $7,000. Now I would certainly not consider this transaction to be a successful real estate investment, but the experience transformed our thinking in general. It was a wake up call to us to think that what to us was a nightmarish situation could be turned around to our advantage.
It had been our goal to get involved in real estate at some point on the buy and hold side. Lately we have been consuming information here on BP and have connected with a couple of buy and hold investors who have been very helpful.
I am pleased to say that we just closed on our first investment property. It is a deal that will afford multiple exit strategies, but if we proceed according to our initial plan, it should cash flow at about $250 after all expenses, capex and mortgage. The numbers also meet the 70% rule for a flip if we decide to go that way or we should be able to pretty much cash out (if not more) using the BRRRR strategy. The house is in a very desirable, established neighborhood, surrounded by houses that are valued at 2-3 times what we paid for ours.
We are also scheduled to close on our second investment property in about 2 weeks. My wife and I are very excited about our deals and just wanted to share.