Just Closed My First Deal!

Just Closed My First Deal!

Rental Property Investor · Mount Vernon, NY · Member since 2016 · 89 posts · 125 votes

BP family! I'm very excited! I just closed my first deal as an investor a week ago. After scouting the MLS for months I finally pulled the trigger on a duplex (1 bedroom over 1 bedroom) in West Philadelphia. It's not the deal of the century, but here are the numbers:

List Price: $69,900

Purchase Price: $60,000 + $500 seller concession (net purchase price: $59,500)

Appraised Value: $67,000

Downpayment: $15,000

Projected Gross Rent: $1,250/mo

As mentioned before I didn't hit a homerun but the numbers work. I managed to have the seller make a good number of repairs and turn over the units (since both were vacant). The property already had a new roof, updated electric and plumbing installed throughout so all that's really needed now are cosmetic updates. Here are some pictures:

I'm in the process of getting the floors in the second unit refinished and heeded the advice extended in many of the posts that predate this one "get multiple contractor bids!" I was surprised at how wide the spread in the bids would be.

What Will I Do Different Next Time:

My goal is to acquire 100 units over the next 10 years. I've come to the conclusion that in order to do so I can't go about purchasing property as a retail buyer, tying up all of this cash. With this property I was just so eager to actually do something, rather than sit on the sidelines and analyzie deals for God knows how long. I've told myself that my next purchase will be a value add project where I can get my capital back after a cash-out refinance and use the money towards the next acquisition (good 'ol BRRR strategy).

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John G.Pro Member
Rental Property Investor · Brainerd, MN · Member since 2015 · 72 posts · 42 votes
9y

congrats!

Be careful it is very addicting.  I started with a duplex flip....changed my mind and rented it.  That was 5 years ago now I'm up to 17 rentals.  I hoping for 5-6 more this years.  I love you have ambitious goals, that's what it takes.  Good luck my friend...you will succeed if you believe!

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  • Roseville, CA · Member since 2016 · 15 posts · 9 votes
    9y

    Great job! Congrats on jumping in the pool! I'm still in my shorts, putting sunscreen on (saving) . lol. I'm so excited to dive in as well!

  • Investor · Chicago, IL · Member since 2014 · 42 posts · 5 votes
    9y

    Congratulations!

  • Investor · San Diego, CA · Member since 2017 · 6 posts · 0 votes
    9y

    @Michael Enriquez Congrats and thank you for the inspiration! Place looks solid.

  • Rental Property Investor · Indianapolis, IN · Member since 2015 · 46 posts · 16 votes
    9y

    Inspiring! Way to get off the sideline!  Best of luck! 

  • Real Estate Agent · Pittsburgh, PA · Member since 2017 · 6 posts · 3 votes
    9y

    Congratulations!  That looks like a great building!!!!   I was much slower than you and I got started late.  I as 46 before I started the investing game.  I got sidetracked along the way, but today 10 years laters, I've rehabbed some homes, got my license and I have 12 units.  4 duplexes and 4 single family all cash flowing between $300-$500 a unit.  It is addicting!!  This site it is great for help along the way.  Stay focused.  Don't get sidetracked like I did.  You will make your goal before you know it.  This late in the game for me, I just want a total of 20 units and then pay them down to get higher cash flow.  WE all have different goals and reasons for doing the business, just stay focused...

  • Long Beach, CA · Member since 2016 · 9 posts · 6 votes
    9y

    Excellent Michael! Congratulations to you from a fellow New Yorker:)

  • Real Estate Investor · Mackenzie, British Columbia · Member since 2017 · 9 posts · 4 votes
    9y

    Give yourself a pat on the back for getting one under your belt! You are an action taker and will reap the rewards over many who wait for the perfect deal before pulling the trigger. Well done Michael.

  • Professional · Philadelphia, PA · Member since 2015 · 17 posts · 12 votes
    9y

    What are your plans for property management? 

  • Kirkland, WA · Member since 2016 · 1 post · 0 votes
    9y

    Congrats!

  • Investor · Jackson, MS · Member since 2014 · 1k+ posts · 769 votes
    9y

    Congrats! This looks like one of those row houses I used to live in when I taught at Franklin and Marshall in Lancaster. For the East Coast it seems like an excellent investment. As John says, this is addicting. I never imagined owning the nine properties I have now. That took me six years. My question is this: since you are in New York how are you managing this property? 

  • Rental Property Investor · Los Angeles, CA · Member since 2016 · 57 posts · 8 votes
    9y

    @Michael Enriquez wow congrats.  I live in Los angles ca.  I've been wanting to jump in to the game. just been trying to find a duplex that kinda cash flows. But I wouldn't mind learning more about the west Philadelphia market.  Maybe when you get a chance you can send me some links or give me some contacts (agent, contractor, property management, etc.... or tips on getting into the market over there. Thx val

  • Peter MacKercherBusiness Member
    Residential Real Estate Broker · Saint Louis, MO · Member since 2014 · 1k+ posts · 567 votes
    9y

    Congrats!!! and good job. 

  • Investor · San Diego, CA · Member since 2016 · 351 posts · 141 votes
    9y

    Great work ! It's alllll about the hustle, and you showed it through consistency of MLS searching and pouncing on the opportunity once you found a deal that met to the criteria you stuck with. Best of luck in the future !!!

  • Orem, UT · Member since 2017 · 4 posts · 1 vote
    9y

    Congratulations! Can't wait to post like this, myself, soon! First deal YAY!!!!

  • Property Manager · Jackson Springs, NC · Member since 2017 · 5 posts · 2 votes
    9y

    You made an excellent purchase...and the numbers will work for you.

    Must be beginners good luck!!!  Just kidding there.

    You will get to the point where you won't even have to pick up a pen or paper, and will know what a good deal is. That's what all those months of homework were all about. It's just the first one that is tough. You've got it now!

    Beckie Pahner

    Broker in Charge 

    Pinehurst, NC

  • New to Real Estate · Los Angeles, CA · Member since 2016 · 23 posts · 16 votes
    9y

    @Michael Enriquez Congrats! I am in LA and also thinking of investing out of state. Can you share how long you were looking before you found this deal and what your process was for finding a specific city to invest in out of state? Did you narrow it down to just one city and then work with a local realtor? Or were you working with various realtors in a few cities you thought might work?

    Any advice you can provide would be greatly appreciated. Congrats again!

  • Real Estate Investor · Blue Bell, PA · Member since 2014 · 5 posts · 6 votes
    9y

    Congrats man! IT definately gets addicting but it's a great addiction to have.  

  • Investor / Vendor · San Diego, CA · Member since 2016 · 1k+ posts · 949 votes
    9y

    @Michael Enriquez

    Well-done on your first deal!  How did you decide to invest in Philly from NY? Do you have boots on the ground there?

    I like your strategy. You will need software for rehabbing your property. If interested in software to help you with your rehab and to save time with contracts with your contractors, let me know. I can hook you up, just shoot me a message.

    I just bought my first property as well and it needed little rehab like yours, but I see you're doing BRRRR so you'll need to rehab it next time so I think the software will help.

  • Wholesaler · Grand Prairie, TX · Member since 2016 · 48 posts · 16 votes
    9y

    Congrats!

  • Rental Property Investor · Warrenton, VA · Member since 2016 · 126 posts · 58 votes
    9y

    Congrats on #1. Like people have mentioned before, it's very addicting -- but a good one to have. 

    How's the neighborhood there?  I'm somewhat familiar with that area. 

  • Alexandria, VA · Member since 2016 · 111 posts · 164 votes
    9y
    How did you finance it?
  • Nanoose Bay, British Columbia · Member since 2016 · 5 posts · 2 votes
    9y

    Congrats on pulling the trigger! I have yet to do that myself :) 

    I look forward to hearing how investing outside of town went as I have the same challenge as you--A duplex in my local area is about 400k  :P

  • Rental Property Investor · Stewartsville, NJ · Member since 2016 · 419 posts · 280 votes
    9y

    Congratulations Michael!  Thank you for sharing your post it is very inspiring.  I am close to doing my first deal, so it is very helpful to read success stories like yours.

    Your property looks very nice, and I wish you much success with it!

  • Naperville, IL · Member since 2017 · 11 posts · 38 votes
    9y
    Congratulations Michael Enriquez ! I can't wait to make my first! Good luck to you :)
  • Real Estate Investor · Houston, TX · Member since 2015 · 15 posts · 1 vote
    9y

    Congrats my friend. You  took the first step wich is the hardest,what is next will come easy.

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