1st Investment: Any advice ?

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1st Investment: Any advice ? I am having an home inspection done tomorrow and would appreciate any feedback that BP members could give me. I am buying the house at 135k but my banker is going to loan me 145k. I am planning on taking the 10k for any unforeseen surprises. I am also going to rehab two apartments as soon as the tenants move out. Landlord pays utilities. Any thoughts ? Plan is to increase the rent 50 per door as new tenants come in.( with improvements of course )

Michael Pearse · Answer

@Daniel Fane Here are some things to keep in mind for this investment project

Since you are rehabbing:

1. Set a budget

2. Understand the competitive market target RENT in your area.

3. Create a SOW (Scope of Work) and use this as a checklist for items that need rehab.

4. Verify that the rehab list meets your target budget.

5. Set a timeline. The longer the property is under rehab, money is lost in what could have been collected with renters in place.

6. Reflect on the outcome, document what you learned from the results. Use this information to guide your decision when making an offer on the next deal.

Cheers!

Daniel Fane · Answer

@Michael Pearse Thank you for the advice !

@Ricardo Diaz Thank you as well. I am not going to use a home inspector again. I felt that for what I paid I didn't get much value. I have a local contractor that I will be using for now on.