VICTORY! I finally did it

VICTORY! I finally did it

Investor · Denver, CO · Member since 2016 · 181 posts · 242 votes

Just closed on my first SFH 2 weeks ago and I am AMPED to have finally defeated paralysis analysis and joined the club. Quitclaim deed has been initiated and the property is officially in the LLC's name. Let the fun begin! Here are the dirty details:

  • Purchase price: $112,502
  • 25% down
  • 3.375% int rate (paid ~ $1,500 in points)
  • 3 bed 2 full bath with 4th non-conforming bed in the basement
  • Detached garage and carport
  • Property taxes $1,127
  • Insurance $1,050
  • Property management 5%
  • Rent $1,250
  • Vacancy rate 5%
  • Maintenance and repairs 6%
  • Oh **** fund 5%
  • Cash flow $421/month

My main issue going forward (like many fellow investors) is having enough capital to purchase more properties. I am able to find great (> 1% on the 1% rule) properties but I don't want to wait 6 months to save up enough cash. Time to get the BP book on no and low money down and also find some partners!

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Most Popular Reply

Scott TrenchPro Member
Rental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes
6y

@Nicholas Sheridan, Jr. in light of your post, we are going to officially relabel the “capex reserve” in our calculators the “oh sh** fund”. This is far more intuitive.

Congratulations on what seems like a great first step!

See this reply in the discussion

185 Replies

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  • Rental Property Investor · Los Angeles, CA · Member since 2019 · 160 posts · 58 votes
    6y

    @Nicholas Sheridan, Jr. congratulations

  • Rental Property Investor · bloomfield, NJ · Member since 2019 · 13 posts · 4 votes
    6y

    @Nicholas Sheridan, Jr.

    I just listened to the audiobook on low or no money down for free on YouTube it’s great!

  • Investor · Denver, CO · Member since 2016 · 181 posts · 242 votes
    6y

    @Lucia Rushton Thank you !

  • Flipper/Rehabber · Bakersfield, CA · Member since 2018 · 17 posts · 2 votes
    6y

     @Nicholas Sheridan, Jr. 

    RIGHT ON THERE MY MAN WELCOME TO THE GAME , HIT IT OUT OF THE PARK FOR A HOME RUN EVERY TIME BROTHER CONGRATULATIONS !

  • Investor · Denver, CO · Member since 2016 · 181 posts · 242 votes
    6y

    @Adam Owczarzak You are going to make mistakes on your first deal, a lot of mistakes. Like a real lot of mistakes. There are a bunch of hot markets and I have seen bigger pockets forum posts on lists of these markets. Pick the one that is closest to you and learn a bunch about it, find a real estate agent from there through connections and start receiving auto mls updates. Save your money, make sure you account for at least 3% of closing costs in addition to your downpayment

  • Investor · Denver, CO · Member since 2016 · 181 posts · 242 votes
    6y

    @Christian Rojmar I'll PM you

  • Investor · Denver, CO · Member since 2016 · 181 posts · 242 votes
    6y

    @Larry Zucker Thanks Larry, just another stepping stone to getting to my goal. Also, Go Wolfpack!

  • Investor · Denver, CO · Member since 2016 · 181 posts · 242 votes
    6y
  • Investor · Denver, CO · Member since 2016 · 181 posts · 242 votes
    6y

    @Luis Rivera Thanks man!

  • Investor · Denver, CO · Member since 2016 · 181 posts · 242 votes
    6y

    @Javier Rosales thank you!

  • Investor · Denver, CO · Member since 2016 · 181 posts · 242 votes
    6y

    @Roger Casanas Thanks man! I caught the bug and am ready to make my goal happen

  • Investor · Denver, CO · Member since 2016 · 181 posts · 242 votes
    6y

    @Laith Faouri oh awesome I am going to check that out! I was going to order the book but heard mixed reviews, plus I think there is a new edition coming out this month.

  • Rental Property Investor · Phoenix, AZ · Member since 2008 · 72 posts · 39 votes
    6y

    Way to go Nicholas, congrats. Numbers look great for a first deal.

  • Flipper/Rehabber · Bakersfield, CA · Member since 2018 · 17 posts · 2 votes
    6y

    @Nicholas Sheridan, Jr.

    right on my brotha , thats how it begins your legendary journey starts now 

  • Rental Property Investor · Denham Springs, LA · Member since 2018 · 95 posts · 44 votes
    6y
    @Nicholas Sheridan, Jr. Really impressive for a first deal. These numbers are great! Almost makes me want to invest in your backyard. Congrats! Keep the ball rolling.
    Was it a move in ready property or did you have to do some repairs at that price point?
  • Rental Property Investor · Saint Paul, MN · Member since 2020 · 6 posts · 1 vote
    6y

    @Nicholas Sheridan, Jr.

    Way to go!! I can’t to join the club as well!

  • Rental Property Investor · Chicago, IL · Member since 2019 · 17 posts · 2 votes
    6y

    @Nicholas Sheridan, Jr.

    Congratulations!!! Can't wait to join the club myself.

  • Investor · Denver, CO · Member since 2016 · 181 posts · 242 votes
    6y

    @Jonathan Hardy Thank you! Keep working hard, PM me if you have any questions on this deal

  • Investor · Denver, CO · Member since 2016 · 181 posts · 242 votes
    6y

    @Jayce Wagner Thanks Jayce ! Keep on working hard and make it happen. @Anthony H. I am actually from Denver so this was out of state. Thanks! Repairs were: new water heater, garage door, and then smaller rent ready stuff. I took care of most of the small stuff by myself.

  • Attorney · Washington, DC · Member since 2020 · 24 posts · 10 votes
    6y

    Excellent, @Nicholas Sheridan, Jr.! For the LLC transfer, did you have to pay any transfer/recordation fees? Did you transfer the title policy and insurance policy to the LLC? Lender okay'd the LLC transfer?

  • Investor · Denver, CO · Member since 2016 · 181 posts · 242 votes
    6y

    @James Billings-Kang $29 quit claim deed fee. Will be doing that later this week once I receive the paperwork. It is apparently a very common thing to do and lenders don't seem to have an issue unless the note doesn't get paid on time

  • New to Real Estate · Detroit, MI · Member since 2019 · 41 posts · 21 votes
    6y

    @Nicholas Sheridan, Jr. Awesome! Hope to join you very soon!

  • Real Estate Agent · Chisago City, MN · Member since 2019 · 11 posts · 8 votes
    6y

    @Nicholas Sheridan, Jr. what a great deal for your first investment!! Thank you for sharing your story and breaking down the details. It's very helpful to see that information as a newbie investor myself. Best of luck in your future investments!

  • Rental Property Investor · Burleson, TX · Member since 2018 · 20 posts · 5 votes
    6y

    @Nicholas Sheridan, Jr. Congrats!! The first deal is the hardest one

  • Brookfield, WI · Member since 2016 · 191 posts · 108 votes
    6y
    Originally posted by @Patrick Pierre:

    Huge congrats! How are you able to make $421 cashflow if the rent is $1200 with all the monthly expenses you listed?

     Based on those numbers, it comes to $435 a month cashflow actually, so clearly he's got a monthly $14 expense he's not disclosing, I'm betting on eithre water/trash, or he's splurging on coffee once a week while he looks for the next deal :D  rent is $1250  very nice deal.  Hopefully you can add enough equity to get most of your $30k back out and repeat!

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