First investment property with Rent to Retirement
Hi BP community,
I just wanted to share that I recently closed on my first turnkey deal with Rent to Retirement in Illinois. I am busy in a full-time job in Boston and wanted to work with someone trustworthy to get started quickly rather than get stuck in analysis paralysis or be discouraged by Boston prices. I came across Rent to Retirement through the BiggerPockets forum and podcasts and was encouraged by numerous positive reviews.
I bought a single-family home with a tenant in place, generating cash flow. The whole process was pretty straightforward and smooth. We worked with @Eric Winkler at R2R. He is very knowledgeable, provides excellent service, and was always a quick call or email away. We received recommendations for the lender, insurance, and property management, and the team worked efficiently to close the deal on time. I found independent inspectors. While they were a few minor incidents, like the tenant refusing entry to the appraiser due to COVID concerns or issues with fixing things that showed up in the inspection, Eric helped sort it all out in the end, and we got them resolved.
We look forward to working more with their team in the future. We are also in the process of going through a new construction property in Cape Coral with them.
If you are on the fence and thinking about getting started, I'd recommend a quick discussion with them.
Thanks to @Eric Winkler and @Zach Lemaster!
Rough Numbers
- Purchase price: $200,000
- Cash invested: $52,0000 (25% down conventional financing)
- Rent: $1,750
- Property Mgmt.: $125 per month, but I assumed 10%
- Capex+Maintenance: 5% (Assumed this since the home was recently rehabbed and all major items have 7+ years)
- Property tax: ~$5,000 (Could increase in the future; not sure)
- Insurance: ~$600
- Cash flow: ~$250 per month (while not huge, I expect some appreciation)