All Forum Posts by: Justin Johnson

@Joe P. thank you!  I was just feeling overwhelmed with all of the goings on.  I had to move from my old place, clean it up, clean the new place, move in, organize it, clean the new place, get everything in place...I was just feeling like it was too much to do and take in.  Here is my final analysis done on the property. 

I plan to hold onto this property for at least 1-2, unless I can find a way to get the total monthly cash flow bumped up considerably.  It is not under management and the lawn care is based on the lawn care company visiting twice a month and that will only be for about 2 more months until the grass has slowed way down as fall and winter approach.

Is it normal to start freaking out after you purchase your first rental property?  I know I am seriously freaking out.  I hope that it's just the jitters from all of the new things going on.  This is the first property I've ever bought, let alone a rental property.  My first experience was...interesting to say the least.  The seller seemed a little shady and didn't bother to tell either agent that the tenant was moving out...the same day that we were closing.  I am house hacking this one, living in the one side that I thought was going to be vacant.  The other side was cleaned decently and is in pretty decent shape, but the SMELL is so bad in there.  Everything has been chaotic and I'm really trying to calm myself, but I just have this huge anxiety.  I worked and saved and cut my finances to the bone saving off 40% of my income each paycheck, then poof, it was gone into the down payment.  Has anyone else felt this way when they started or is it just me?

Any stories, advice, or words of encouragement would be greatly appreciated right now while I'm trying to hold it together.

Thanks!

First offer was countered, they were happy with the purchase price but lowered the amount they were willing to pay on the closing costs.  That will leave me paying about $1,300 closing costs, not bad!  Paper work, more papers, more esigning, inspections, so much going on and it's all a blur lol

Thank you, @Will Fraser, I have not heard of Dave Adams, but I might reach out.  I have been working with a buddy of mine who is a real estate agent who also owns rental properties.

@Sara C. I have been trying to remain calm.  Little excited, little freaked out, and lots overwhelmed lol!

Definitely will be posting more as the journey unfolds

Almost 18 months of saving myself poor and I'm about to pull the trigger on my first offer on a duplex/house hack. Freaking out a little bit here. Before COVID-19, I qualified for FHA loans, but not now. So, I'm looking at 15% down on a conventional mortgage and after re-analyzing the property with the new numbers, they aren't as wonderful as they were before. However, with one side rented, it is still cheaper, by about $450, than the rent I am currently paying for my house right now. It would allow me and my wife to save more money, or have a little more of a life then we have for the last 18 months. After all is said and done with the closing, I'll have about $6,500 left and will still be saving my $1,200 / month from my full time job, plus the possibility of saving a little more each month from the rent I am not saving. I am needing some encouragement and words of wisdom at the moment, cause I'm scared as hell about jumping in and going for my first deal!

Welcome to BP @Phil Lee!  I feel your excitement as I am about to make an offer on my first property.  Saving back 60%-70% is amazing!! Congrats on that

If you haven't already, check out the free guides here:https://www.biggerpockets.com/guides

Best to you
JJ

@Elijah Brown, I took last year's total taxes and added 5% (they were the same amount for the last 3 years on the assessors website).  I will be going to talk to the county assessor tomorrow to find out what the taxes are to get good solid numbers.

@Devon Keaveny, the screenshots are from BP, it's one of the calculators they offer on here.  You an use it a limited number of times for free (5 times I think?) and unlimited if you "go pro".  They are insanely helpful in calculating and playing around with numbers.

@Mark Cios I have looked for quads but the ones on the market right now are either a) they are meth/crack houses or b) a little out of my price range just starting out.

@Keleisha Carter the property has recently been re-floored and renovated.  There are a few things I'd touch out (bathroom/kitchen) but they are minor things (again, this is something I will double, triple, and check again during due diligence).  There is a rather large garage in the back that I am thinking about converting into a garage apartment if zoning will allow it.  I will re-run the numbers with the PM values in place to make sure, thank you!

@Dylan H., yes, I plan to keep this as a rental after I move out.

@Elijah Brown, I grabbed the tax information off of the assessors office website and added a 5% increase to be a little more conservative on my calculations, but will definitely double check. 

Thank you all for your comments and helpful suggestions.

JJ

The images do not include me living in it.  The monthly income would be $650 instead of $1,300 / Month while I was living in it.  The rents are the current rent amounts (and I would triple check that in due diligence).  The way I was looking at this is it could be costing me $4,447.20 less each year to house hack this and that money could be going into my next deal.  

Would this duplex be a good house hack deal?  The first image is with the purchase price that I am wanting.  The second is using numbers from the county data with the last appraised price.  My monthly payment (if house hacking) would be about $309.40 which is less then half of what I am currently paying in RENT right now.  I have the capital saved up, but I am wanting a second (or third) opinion on if this deal makes sense.  This would be my first deal.  I am *so* ready to jump in, but I want to make sure that I do it intelligently and not just rush in and buy the first thing (I know I'll make mistakes but that's part of it).

With county data being used for the purchase price:

What the seller is asking:

Thanks!
JJ