I am finally a RE Investor!! I broke out of Analysis Paralysis need some advice

[Kristin Riker]

Hello RE investors!

I am pretty excited to announce that after close to a year of being in Analysis Paralysis, I have had my offer accepted and am currently in the process of possibly closing by the end of the month (CUE THE PANAIC ALARM). 

I feel extremely comfortable in the property I have located, the town it is in, and the property itself. It's a SFR (2023 build 3/3) and my goal is a LTH (long term hold) to concentrate on appreciation and gradual rent increases. I've done my research on the property and area which included medium household income, population growth, economic growth and movement, county taxes and business developments (permits for new houses and businesses applications), unemployment, crime, and YoY house values.

I feel great to get this 1st investment with some sweet benefits in just the closing. I closed on the deal at 370K, asking was 400K and comps provided support an appraisal of 425-450K, which generates an instant equity of up to 50k (obv with the appraisal).  I also was able to negotiate a 2% seller credit and 1% agent credit that I will use towards closing cost.  

In terms of rents/cash flow, I will be about $50 - $100 in the red the first year or so but I have accounted for that in my savings as well as for all other expenses (Capex, Vacancy, Insurance, etc.). I am willing to take that loss in exchange for the instant equity and potential appreciation and slow rent increases that will have me cash flow positive in 2 years max. It was difficult to find a cash flowing property in the Class B area that I was looking at for a property that is only 3 years old.

I'm excited and extremely nervous all at the same time, but I feel that is to be expected being that I am finally off the sidelines and in the game.  

I am going to be a O/O/S investor, I live in NYC and being that the property is in Texas I gave serious consideration to hiring a PM.  When it came down to it and after to talking to my agent, who is truly amazing and someone I've learned to trust, we went over the pros and cons of self-managing a 3-year-old property and if I really needed to pay additional funds that would cut into more profits to hire a PM.  

I've decided to hire a leasing agent to do the tough part and find and vet a tenant and decided to self-manage the property. This is where I would love the help and advice of the BP community.  I've started to read article after article and post after post about Real Estate Accounting software and PM software.  I would really love some advice, suggestions, and recommendations for both. I know it's just one property, I've heard all types of advice from just using Google sheets, to Buildium and other companies like Doorloop. 

In terms of accounting software, I want something to help me keep track of everything and provide P/L's, track of receipts, etc. 

I appreciate any feedback, advice, suggestions, or just comments as I've started my RE adventure, the 1st of many to come. 

"One day, or day one"