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

21Reply
193 views

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

84 Replies

Jump to latestLatest
  • Jarrel, TX · Member since 2017 · 44 posts · 2 votes
    8y

    congrats!!

  • Southbay, CA · Member since 2015 · 38 posts · 18 votes
    8y

    Congrats!

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

    Congratulations!!!! I want to hear more about this kit to paint counter tops!!!

     Hey Christi, We used a white paint kit from home depot that is meant to cover bath tubs and make them look new. As for counter tops take a look at these pictures. We didn't do this on my home, but my landlord recently did this on hers.

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

    Awesome story.  We are looking for our first rental, but we've got analysis paralysis lol!  We are up in central New Jersey.  Anyone know of any good areas for rental properties?

    AMERICA!! lol, But in all reality the numbers just have to work. You can make money in any economy.

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

    Congrats on the deal. I'm wondering....you say this is a long distance rental but you also did all the work, how did you manage that? Did you visit weekends or did you take a few weeks off from work? I'm looking at long distance because it's so expensive here but can't exactly take a month off from work for a rehab.

     Hey Christoper, 

    Luckily being a union electrician I was fortunate to have one project end before we closed on the home. I just took the little time off before going back on the books to the next project. You might just have to time it. Take a week off from work and anything you can't work on get it all subbed out before you arrive. Also this wasn't a huge rehab, it would have been hard/more time if this was a huge job.

  • Hebron, KY · Member since 2018 · 1 post · 0 votes
    8y

    Well done! What was your strategy for finding a solid property manager?

  • Christi HawkinsPro Member
    Columbus, OH · Member since 2017 · 237 posts · 142 votes
    8y

    @Vincent Townsend thank you for these pictures, the difference is amazing

  • Summerville, SC · Member since 2018 · 553 posts · 252 votes
    8y

    Awesome good for you!  Way to go.  (keep going!)

  • Myles EllisonPro Member
    Real Estate Broker · New York, NY · Member since 2018 · 13 posts · 1 vote
    8y
    Originally posted by @Vincent Townsend:
    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?

    Hey Vincent! Sorry for the late reply. I deal with the finances and he deals with the tenant/repairs, but we switch it up sometimes.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.