All Forum Posts by: Dustin Beam

Thanks @Matt Pritchard!

Thanks @cliff Harrison!

@Andrew Syrios thanks I appreciate it !

@Mary lou L.  It is central air and basically at cost, no labor prices. Same with paint. At this point, I'll be doing almost everything myself. I know that can't last forever though.

Thanks @Gordon Cuffe!

@Zach Quick, Yeah I've wondered if some of it is too low, namely HVAC. But, I have priced most of it out where I can. The good news is that even if the CapX doubles, I should still be ok. Not that I want that, but my margins are wide enough to keep me well above water I think.

@Ron Olivera, Thanks!

@Aaron L., I was typing up my long response, so didn't see your post. Please see my pic and feel free to comment or question. Thanks! :)

@Joshua D. , it certainly feels like a big bite! I originally only wanted to buy 1-2, both because I didn't know if I could afford 3, and also because of the additional responsibility considering my inexperience. Ultimately the seller wasn't too keen on splitting them up, so I said "screw it, I want them all!" haha Trial by fire I suppose

@Todd Crippen Thanks, I'll try to update along the way. 

@Zach Quick, Yes it's my first deal, and I'd be a liar if I told you there was no anxiety attached to these properties! :) But I did it anyway. 

I'm attaching a pic of my spreadsheet analysis. The "Cashflow" section is skewed because I have property management factored in there. As is now, I should hopefully average around $2100 month ($175/door) over the long term if my analysis holds true. The average month should be higher without CapEx. *EDIT* I should also get about 20-25% CoC return without a manager, which to me is the best part. I don't know any other way to get those types of returns, and that's neglecting equity and hopefully appreciation!

It was also nice at closing because I didn't have to bring the full 20% down. Of course, the earnest money was taken out (5k), but after the prorated rents, taxes, deposits, and seller provided closing cost amount (4300), I only had to bring eighty something to close. Still a huge chunk of money to someone like me, but an easier pill to swallow.

Not sure I can call it a success until I've had sustained cashflow, but I did close on my first properties yesterday. They are three fourplex buildings, basically identical and side by side. They are located in Kansas City metro (Raytown to be specific).

I lot of excitement and some nervousness (I don't know what I don't know), but I obviously expect it work out or I wouldn't have gone through with it!

There were lots of headaches along the way for several reasons, many because of my inexperience. Commercial or traditional financing, getting it under contract (FSBO), etc, etc. But it worked out and here I am.

Thanks to everyone at BP, and @Joshua Dorkin for starting the site. It has helped me tremendously and I expect it will going forward!