Bit of detail from First Purchase

I will start to post blogs about each transaction that I do and the various problems, issues, obstacles that I face in each one.

The first home I bought was an Estate Sale. It was located in a nice neighborhood two blocks from the hospital and four blocks from the schools. The home was originally listed at $109,000 and was on the market for 166 days prior to me turning in an agreement. The list price at time of purchase was $89,000. My offer was $75,000 cash with a home inspection. I am a lifelong builder but this home was built prior to 1900 so I am sure there were items that I would not be aware of. The offer was accepted without a counter. I performed my inspection and the only issue that was found was that the fireplace chimney was cracked and leaning, plus some shingles needed replacement. I provided an estimate of $3500 to take the chimney down to the roof line and $4500 to take it down all the way. I had no need for the chimney but I had no problem with it being taken down only to the roof line. They took it down to the roofline with a subcontractor they picked.

As far as repairs go, all I did was carpet the home, paint the interior, finish the top floor into a bedroom and added heat/air to finished attic area. By finishing the attic I took a 3 bedroom home and made it a three bedroom. The home was previously remodeled where they deleted the smallest bedroom and made the owners bedroom closet a walk in and enlarged the bathroom. Like I said this was an estate home and they raised their family in this home and now being empty nesters had no need for a third bedroom. The attic bedroom was very large but you had to walk through the second bedroom to get to the stairs to access the third floor.

When I bought the home I knew this would make a great rental. I invested no more than $15,000 into the home for a total investment of $90,000. The home appraised at $110,000 conservatively by my bank. They lent me $80,000. So basically I had $10,000 of my money in the home and I am receiving $1,100 a month rent. My mortgage is $425, taxes $252 a month and insurance $65., for a total of $740. I make $460 a month. In the year that I have own this property I have not spent any money on repairs. I have a great long term tenant who loves the home and will be there forever.

This was the start of my new career that I enjoy being active in every day. Let me know what questions you may have and I will do my best to answer them.