Just Bought First Property!

[Kyle M.]

Just bought my first property, thanks BP!  Is a 2br/2ba that rents for $1350 and I close on Dec. 1st.

Any tips when finally starting out? How to prepare etc. (may be even some informal ones)

I plan to make a nice long laundry list together of things to do, but that can wait until tomorrow!

[Kyle M.]

Originally posted by @Jon Huber:

@Kyle M.   Congratulations! I remember my feeling when I bought my first property. Firstly, be prepared to get an abundance of mail on who you should refinance your loan with. Throw them all away. Secondly, I'd love to give advice on what to prepare for, but there just aren't enough details. What was the purchase price? Do you have positive cash flow? Do you have tenants in there? Are you keeping them/Are they staying? How much work needs to be done on the property? Is $1,350 market value for a 2/2 in the area? And ultimately... what are your future goals for investing in real estate?

Again... I congratulate you. You've taken a first step that many members of BP have yet to take. You are ahead of the game...

 Thanks! 

It is a condo that I purchased for $114,500 in high-end area.  The same condo sold for $147,000 in 2005.  I know I can get at-least $1300 month in rent (through posting a fake ad on Craigslist).  Top rents in the same area are $1400.

I know some people on here are against condos and rightfully so. Without going into much depth I felt that the negatives were outweighed by the positives such as booming area, A+ schools, attract high end tenants (less maint/hassle), ability to appreciate, know the PM personally, and I actually grew up in the same town so I know the dynamics well. Similar SFR in area go for $200,000+ and feel that it was a cheap buy in a nice area.

Property in great condition and will only need paint, new rugs in bedroom, and there are some grouting issues in the bathroom.  Expect around 3k worth of work

Rent - Mortgage&Ins - Taxes - HOA - Vacancy (5%) - Maintenance (5%)

1350 - 500 - 235 - 205 - 68 - 68 = +280

Goal is to first gain experience and become familiar with all aspects of being a buy and hold investor.  Down the road grow my rental portfolio and keep on utilizing resources to make the correct and informed decisions to grow passive income.

Question:

1. Currently deciding on mortgage rates when comparing them with the closing costs.  For example, 4.25% rate with 5k closing costs or 4.75% rate with 3k closing costs.  What is better?