First Investment Property!

[Ryan Young]

After looking and looking for over 6 months, finally got my first deal done.  Here are a few of the specifics:

List Price - $79,900

Purchase Price - $65,000

Rent - $800/month

A week ago, the owner signed a lease agreement for $800/month for 12 months.  I have seen their application and everything looks great.  I was kind of nervous about there being tenants already in place but I am glad it worked out like this.  Now I dont have to worry about not getting a tenant in there!  

This house does need about 15k in cosmetic updates (paint, trim, door hardware, cabinet paint and hardware, counter tops, appliances). Updated houses in this area usually rent for about $1100/month and sell for around $115-$125k. So my cash flow for the first year is not very great (after PITI, vacancy, repairs, cap ex, and management is $110) but after a renovation after the first year, it will be around $300-$350! Or a potential flip profit of around 25k-30k.

My plan is to save money over the next year while this lease is in place, then get in there and renovate it as quick as possible next summer.  I am super excited about this deal and I am so glad I can finally call myself a "rental property owner".  Any advice as I start this journey will be much appreciated.  Thanks BiggerPockets!!