First Deal Success Story!

First Deal Success Story!

Kuna, ID · Member since 2016 · 40 posts · 29 votes

Hey BP, Im super excited to share with you my first deal! I'll include as may before and after pictures and I can.My brother and I partnered on the deal and got a standard loan with 20% down. This is a long distance rental.

Our first property was a 2 bed 1 bath in southern Oregon. We bought a home "on the other side of the tracks" that most people wont touch, but in talks with the city the area is having a lot of money put into it. Both my brother and I are electricians and have worked in construction a long time so we didn't have any issues with the rehab. When we purchased the property it could haven been rented out "as is", but we are doing the BRRRR strategy and want to refi now that it's complete and buy a few more in the same neighborhood.

I'm a little late on posting this because of the weather, we first were going to paint in July but its was 105F that day. We did all internal rehabs after purchase in July of 2017, but recently finished up paint a few weeks ago.

Numbers:

Cost: 

Asking 115,000 

Purchase Price 110,00

ARV 135,000-145,000

Closing Costs 3,600

Rehab costs > 7,000 ( we did most of the work ourselves)

Mortgage 605

Expenses >400

Rent 1,200

Rehab included:

Painting interior- home interior was originally 7 different colors. Not its only 2.

Bathroom- New toilet and Shower has been painted.

Floors- Hardwood refinished, and kitchen lamnit replaced.

Kitchen/Washroom- All cabinets replaced and handles painted. Wall paper removed, refrigerator installed and washroom sink installed/plumbed.

Front yard- Fence installed, walkway laid out and grass redone.

Backyard- Walkway installed, RV parking now has gravel, sprinkler system installed.

Doors- New doors put on front, rear, and garage entrances. Garage also got a new roll up door.

Exterior- Painted and not UGLY 1950's blue anymore.

The southern Oregon market is wonderful, we had this place rented before we were done rehabbing and the tenants offered to double to deposit if they could move in early. We have been fortunate to have a good property manager as well. We have another 3 properties we are looking at but need to work out the funds. If anyone has questions I'd love to answer. This is my first property so I may have left out some information.

I have a lot more photos of the interior but the keep turning sideways when I post them. If anyone knows how to fix that, ill upload more photos.

-Vince Townsend

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Most Popular Reply

Rental Property Investor · Everywhere, USA · Member since 2012 · 689 posts · 525 votes
8y

@Vincent Townsend congrats on your first deal! 

See this reply in the discussion

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  • Rental Property Investor · Oakland, CA · Member since 2016 · 341 posts · 643 votes
    8y

    Congrats @Vincent Townsend this is Amazing! You are well on your way!

    We should definitely connect as I'm right by you in Oakland and also invest OUT-OF-STATE. My first rental property cash-flowed for 11 months (yay!), but now I'm running into a vacancy issue, there was a squatter in my garage, and it needs repair. If you have time, check out the roller-coaster I've been on the past year on my blog and here: https://www.biggerpockets.com/forums/92/topics/392...

    Biggest lesson I learned: properly vet your property manager and make sure you've got a quality company in place. I know that's cliche, but if you're investing out of state, this is crucial to your future.

    Talk soon Vincent! Best of luck!

    -Tyler

  • Tampa, FL · Member since 2016 · 11 posts · 3 votes
    8y

    Congrats!!!

  • Myles EllisonPro Member
    Real Estate Broker · New York, NY · Member since 2018 · 13 posts · 1 vote
    8y

    Congrats @Vincent Townsend ! My brother and I are partners for a property, too, except it's in Southern Vermont. Great work! #allinthefamily

  • Fairfax, VA · Member since 2018 · 6 posts · 1 vote
    8y

    Congrats 

    @Vincent Townsend. Fantastic rehab! Please share tips/resources you used for vetting your tenant. 

  • Austin, TX · Member since 2016 · 10 posts · 4 votes
    8y

    Congrats!

  • Investor · San Ramon, CA · Member since 2016 · 22 posts · 3 votes
    8y

    Congrats on your first rehab. Property looks great. Good luck.

  • Dublin, CA · Member since 2018 · 2 posts · 2 votes
    8y

    Congrats @Vincent Townsend! Your story is inspiring! My wife and I are searching out of state for a good first deal ourselves. I’m attending Rod Khlief’s Bootcamp next weekend in LA to learn more. Looks like we are neighbors, let’s grab coffee sometime! 

  • Flipper/Rehabber · Allison Park, PA · Member since 2014 · 10 posts · 2 votes
    8y

    Thanks for sharing the success.  Great pictures.

  • Rental Property Investor · Broken Arrow, OK · Member since 2016 · 1k+ posts · 1k+ votes
    8y
  • Wholesaler · Greenville, SC · Member since 2016 · 15 posts · 1 vote
    8y

    Congratulations on your first deal!! You will always remember that address--here's to many more!

  • Kuna, ID · Member since 2016 · 40 posts · 29 votes
    8y
    Originally posted by @Josh Patel:

    Congrats Vincent, wish you many more future success. Quick ques! how did you buy this property in LLC or own name and how are you planning on refinancinging under your name or llc name?

    Hey Josh,

    We purchased it in our names. Were going to refi it in our names as well. With some of the money we get back from the refi well be getting an LLC established and getting positioned to buy more properties.

  • Kuna, ID · Member since 2016 · 40 posts · 29 votes
    8y
    Originally posted by @John Acheson:

    Congrats! What were the APRs on the mortgage vs. refi? What was the appraised value before and after?

    I believe were at a 5.25 APR. And appraised Before 110k now should be 135k-145k. Were going through the refi now.

  • Kuna, ID · Member since 2016 · 40 posts · 29 votes
    8y
    Originally posted by @Amanda Swetman:

    So when you say long distance, you mean you do not live in the area of the rental? How long did yall stay in Oregon to do some of the rehab yourself? And have you gone through the refinancing process yet

     Hey Amanda, yes currently we live in the California Bay area. Its about a 6 hour drive to the property. It took us about 1.5 weeks average 10-12 hours a day. And I just started the process.

  • Kuna, ID · Member since 2016 · 40 posts · 29 votes
    8y
    Originally posted by @Christian Laines:

    Congrats! Looks like you put in some work & best of all you saved money doing it yourself. Good work! How long did you hold the property before you flipped? Or are your tenants still renting? 

     Hey Christian,

    This is a buy and hold. We have had tenants sense August 2017.

  • Kuna, ID · Member since 2016 · 40 posts · 29 votes
    8y
    Originally posted by @Tyler Jahnke:

    Congrats @Vincent Townsend this is Amazing! You are well on your way!

    We should definitely connect as I'm right by you in Oakland and also invest OUT-OF-STATE. My first rental property cash-flowed for 11 months (yay!), but now I'm running into a vacancy issue, there was a squatter in my garage, and it needs repair. If you have time, check out the roller-coaster I've been on the past year on my blog and here: https://www.biggerpockets.com/forums/92/topics/392...

    Biggest lesson I learned: properly vet your property manager and make sure you've got a quality company in place. I know that's cliche, but if you're investing out of state, this is crucial to your future.

    Talk soon Vincent! Best of luck!

    -Tyler

     Hey Tyler,

    For sure I'll check that out, I'm sorry to hear thats happening to you. And yes property mangers are key. Ive been lucky so far. Ill connect with you soon!

  • Kuna, ID · Member since 2016 · 40 posts · 29 votes
    8y
    Originally posted by @Myles Ellison:

    Congrats @Vincent Townsend ! My brother and I are partners for a property, too, except it's in Southern Vermont. Great work! #allinthefamily

     Hey Miles,

    Thats awesome, how do you and your brother handle the roles in the business?

  • Corpus Christi, TX · Member since 2018 · 62 posts · 24 votes
    8y
    Good Job Man! Appreciate the inspiration.
  • Investor · Taylor Mill, KY · Member since 2016 · 2k+ posts · 964 votes
    8y

    @Vincent Townsend Huge Improvements! Congrats

  • BOISE, ID · Member since 2014 · 77 posts · 45 votes
    8y

    Thats awesome Vincent! 

  • Grove City, OH · Member since 2017 · 27 posts · 8 votes
    8y

    @Vincent Townsend Excited to hear how your refi goes!!! Were looking to find our first deal now too but its very intimidating! 

  • Philadelphia, PA · Member since 2018 · 8 posts · 3 votes
    8y
    That’s awesome , I am new to investing but I am inspired nonetheless!!! Please keep sharing.
  • Orlando, FL · Member since 2018 · 9 posts · 8 votes
    8y

    very nice job....congratulations....

  • Charlotte, NC · Member since 2018 · 2 posts · 1 vote
    8y

    Congratulations and kudos!   and thanks for sharing your story!  I am encouraged!

  • Architect · Seattle, WA · Member since 2015 · 34 posts · 22 votes
    8y
    Congratulations! This looks like it was a good first deal and it sounds like you learned a lot about the process that you can take to your next project. I’m from Oregon originally and it surprised me that your market supports $1,200 rent on a $110,000-$140,000 property. Well done!
  • Investor · Dallas, TX · Member since 2014 · 177 posts · 213 votes
    8y

    Congrats!! Send me your deal vibes.

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