Almost got my First Rental property Closed....Thoughts??

Question

Hey Guys, I'm about to close on a Duplex which, will be the first Property I ever own.

Just wanted to share it with the community & get your thoughts on the deal

Purchase Price: 118,000

interest rate: 4.125

Estimated Mortgage Payment: $1,131

Smaller 2bed & 1bath= with a tenant $750/mo, currently a month to month lease but tenant wants to stay so I will have them sign a 1year lease.

Bigger 2bed & 2 full bath......currently empty (I did not want the previous tenant so they moved out before closing), was renting for $850 but I will likely increase it to $900-$950 which is on par for the area.

So I'm looking to have bring in 1600-1700/mo in rent.

New Roof & home is in good condition but who knows what the future holds

Property is in a Suburb that rents pretty easily due to proximity to lake, amusement park, and quality school district.

I feel good about the deal but I'm curious to get feedback & some advice, with the winter here & in full affect my 1st cost is going to be someone to plow but I'm excited about it overall.

Jason V. · Answer

Canandaigua area?  (Edit: Oops, my three-one-fiver is showing: he said water park and lake and I thought of Canandaigua and the spray park before Ontario and SeaBreeze.)

Yea, if your rent numbers are good (and I think they are) it doesn't need any work immediately, and you're not on the hook for any utilities, you've got a solid base hit with this one. Maybe better, considering the markets.

I wouldn't worry too much about the guesstimated appreciation rates anywhere in Western NY. Don't plan on getting any, and be prepared for it not to keep pace with inflation long term. That's not really the type of investing we do here, in my opinion as a Wayne County investor anyway.

Good luck! It's all scary on the first one, but it gets easier every time.

Matt Harris · Answer

Doesnt sound too bad sounds like you bought in irondequoit. Best of luck

Jacob Rivera · Answer

@Matt Harris....Can't get much past you buddy lol...Thanks

@Sam Shueh.......I'm already looking for a plow guy & salt. That's the last thing I need

@Jason V. ..........Thanks

@Joel O'Leary......Thanks, looking forward to this being the 1st of many successful investments

@Mike Cumbie......Thanks Mike, I'll give the month to month some serious thought, just don't want a sudden vacancy. I guess I'm nervous about it just because I already have a vacancy to fill.

Sam Shueh · Answer

Know a little about Rochester, NY the unemployment rate there is a bit higher.  But I think homes will appreciate. I suggest you claim your property on Zillow they will send you Guessestimates and projected value.

Watch the icing and slippery side walk. If getting sued for not clearing you are in for a surprise.

Paul Bowers · Answer

If you are worried about them moving suddenly a year lease isn't going to stop that.  If they decide to leave, they're leaving.  Keeping them on the month to month gives you much better control over removing them if and when you decide to.

Mike Cumbie · Answer

Oh I forgot to add.

Why move the current tenant to a year lease? Keeping month to month especially for an inherited tenant keeps you in the drivers seat. If things get rough you just non renew vs trying to break a lease as well. Just something to think about, leases help the tenant more than the landlord.

Mike Cumbie · Answer

Congratulations @Jacob Rivera,

Couple points:

1) Unless the "Amusement park" is the Chucky Cheese in Greece I am going with @Matt Harris on location. :)

2) Overall birds eye view, sounds like a solid deal

3) For PITI unless they are from our area of NY and expect to add $600 a month in taxes it sounds high to them (which is why our appreciation is where it is........ flatline.........) so your numbers sound just about right to me (1,131 - 450 = 681 and taxes/PMI will eat that up if you using that)

Overall it looks good, keep condition up to date, fix things as they arise and raise rents as they are able. Hopefully a couple of those industries that discussions are around come to fruition. Like that abandoned mall area freshly rented out by that split off of a fortune 500 company in your backyard.

Good Luck!

Jacob Rivera · Answer

@Sam Shueh @Jason DiClemente

Yes, the Mortgage payment is the total PITI ( Principle, Interest, Taxes, and Insurance)....The Principal & interest alone is $561.....I don't know the anticipated appreciation %......Who would know that info? My realtor, the Loan Officer, or someone else??

Almost got my First Rental property Closed....Thoughts??

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