All Forum Posts by: Account Closed

Hi Steve,

I will attend the meeting.

Thanks,

Stephani

@Sonja Hunter @Drew Markert I found it on MLS through an agent. @Jonathan Phillips on the 2rd unit I colloect $1400 not $3,200 (I wish :] )

Hi everyone,

I'm just starting to take real estate investing more serious. I wanted to share about my first rental property that I closed on last September 2015.

I was VERY scared if losing money but I was more scared of not taking action.......

Working with "estimate" numbers for the first time can be so nerve wrecking and can most certainly cause analysis paralysis but here's what I did..

First, I got a qualification for an FHA loan.

Got approved for $220,000 so only then did I start narrowing down which neighborhoods I could get into.

Since the inventory was extremely and IS still low and prices high I had to go to a D neighborhood.

This made me very scared, especially because where I could actually afford and where there were Multi families available were at least an hour away....but again.....more scared of not taking action....

I found a 3 family and waited to hear from loan officer how much my monthly payments would be.

Once I found that out, I went on to rentometer.com to see how much market rents go in that area.

I then tried to come up with all other expenses which were

Water-

Public Utility (Hallway lights)

Future Expenses

I put all those together and seemed like the numbers worked so I went for it and CLOSED. Here's what the actual numbers look like now:

1st Unit 2bd 1 ba: $900

2nd Unit 2bd 1 ba: $900

3rd Unit 2bd 1 bath 1 inlaw: $1400 

$3,200

My mortgage is $1365

Water is $350-$400

Public Utility:$30-$50

Future Expenses: $640

I end up cash flowing around $745 each month and am so happy I took action!

This is a little motivation for anyone who is suffering from what I did in the beginning. If the numbers seem to work, CLOSE!

Any questions feel free to reach out :))

Stephani Dias

Welcome to the site Marko!

I like to be extra safe and put aside 20% of gross rent for vacancies/maintenance/repairs. Congratulations!!

Hi Kyle,

Numbers look good! Speaking from experience for electricity, $300 per year seems a little low. For public meters I'd put aside at least $100 a month just in case you get tenants that don't respect shutting off hall lights like my tenants don't! :)

It's unfortunate that some had to go through this, but great read for newbies! Thanks a lot for sharing.

Thanks for sharing! Always nice to read a success story.

Thanks for the post. Great read!

Thanks for posting! Will keep my gaurd up when it comes to FSBO's.