Under contract
So here I go. I'm under contract with my first rental property. Its a duplex 3 bed 1 bath each side for 215. putting 20% down. to be honest i'm feeling a little nervous and excited. i keep flipping back and forth from scared to jazzed....going to meet the appraiser tomorrow. i keep running the numbers and it looks like if things go well it'll cash flow. not sure about how much to set rents i have an idea and a min. but this is new territory for me. also, i've got to find tenants....thinking about section 8??? can you really make money at this? if i hit my numbers i'll make 8% on my investment not including depreciation and write offs... guess i'm greedy cause i figure i need to own 10 of these with pos flow... oh well here we go!!!
Comments (7)
So, Mike, how has landlording been treating you for the last year and a half?
Greg B., about 15 years ago
Congrats on finding tenants and good luck with the upcoming contract. My advice . . . take it slow. There's no rush, except the one you're experiencing. Good luck to you!
Joshua Dorkin, over 16 years ago
well its been over a month now since this first posted. I closed early in the month but since the sellers were the city they waited just before Thanksgiving to close. So I didnt take possession until the Weds before turkey day and I had plans to go out of town and wouldnt be back until late Saturday. Just before I left town I put out two for rent signs. I figured I would be lucky to get 1 or 2 calls because of the holiday. I was wrong, I got so many calls I turned my phone off and let the answering machine take them. On Sunday I was back in town and went over to rake leaves and meet prospects. Within 2 hours I had a fist full of cash to hold the units and two applications. Everything checked out and I collected the rest of the money on Monday Dec 1 and let my tenants move in. Now I'm under contract for a single family home. Here we go again!!! This time I'm not as nervous but I'm still keeping my fingers crossed.
Mike Margetts, over 16 years ago
I'm new to investing as well, I haven't even done my first deal yet so I'm proud of you for getting out there and doing it. I'm in the process of learning a few things and patiently studying and working with a few people...I'll catch up with you soon. Thanks
Shawn, almost 17 years ago
No problem Mike . . .
Joshua Dorkin, almost 17 years ago
Thanks for the advice. I'll check out DEAL ANALYSIS.
Mike Margetts, almost 17 years ago
Congrats on getting going, Mike, but if you're not sure whether the property will cash-flow, then you're not ready to purchase the property. It sounds like you're not 100% ready to jump in yet. Before buying any rental property, you should fully understand all of the income/expenses you'll be facing. Without knowing market rents, you can't possibly know if the property is going to make you money or suck you dry. Yes, you can definitely make money doing this! You MUST have a plan of action and know all the facts before jumping in, though. Maybe you could share more of the details of the property in the DEAL ANALYSIS forum (http://www.biggerpockets.com/forums/) and the other members could help you determine whether or not this is a good one. NOTE: Take their advice with a grain of salt, but look at the details - the folks on our forums have a LOT of great info that you can learn from. Let us know more when you can..... Best, Josh
Joshua Dorkin, almost 17 years ago