Just signed rental contracts for my first 2 SFRs

[Tim Nicholas]

Hey BP family. I am very excited and loving what I am doing and a big thank you to Josh, Brandon, Mindy and the  rest of the Team at BP for the encouragement and the challenging blog's, forums and podcast, what inspiration. I just signed contracts and received my deposits and first month's rent on my recently required buy and hold rental properties. Thanks to brandon and his year end 60 day challenge! 

I purchased 2 homes using a HELOC against the equity in my home and a rental that I have had for 5 years. Here is how it shakes out.

Propery 1: 

Purchased in October from someone wholesaling the property (he was actually looking to me for private money lol). I had met  this guy through a PM in my area, this PM would help me with rental forecast for properties I was looking into.  Anyway I told the fellow I did do private lending but if he wanted to wholesale I would be intersested in purchasing it. Long story short I purchased from him for 33k, rehab was cost about 42k, my note is 350, insurance is about 70 per month, rent is 1k per month, 25 % for M&R and cap ex. I self manage through my construction business. Postive cash flow of 300 per month. 

Before

after:

not the best picture with the winter's dead grass and construction debris. I will update picture soon

Before

after

before

After

Property 2:

Purchased through a realtor. Listed for 50k, offer of 40k accepted. Rehab 4k, rent 800, note 225, insurance 60, M&R and cap ex 200. Cash flow about 300

Thanks again BP for the inspiration!!

[Wenda Kennedy JD]

Great job.  Don't forget to set up a sinking fund for short lived items and an emergency fund for those inevitable bumps in the road and those moments that feel like the end-of-the-world.  Then, set up a plan to get the loan paid off ASAP -- 5 to 7 years comes to mind.  It's a slower route to becoming a real estate guru, but it will ensure your long term success.  The key to this type of investing is a slow, thoughtful, well planned path.