First Property on Contract!

[David Hagen]

Good morning, BP!

After a couple months of lurking and posts here and there, along with listening to many podcasts and REI books, I've finally gotten my first property on contract with a closing date of 1/10/19!

First, thanks so much to those that have addressed any questions I've had here on the BP forums.  The willingness of members of this site to advise and educate is fantastic!

Okay, so on to the details:

The house is being purchased for $55,000 and is valued at $63,000. It's largely move-in ready, a 3/1 750sq ft. SFR in Illinois. I plan on renovating to the extent of swapping carpets out with hardwood vinyl tile throughout, painting the cabinetry and installing hardware, installing a new solid countertop, and repainting the house's trim and walls. The bathroom will receive a new sink and mirror, and the exterior will be repainted in the spring with new landscaping for curb appeal. I plan on doing the majority of the work with my brother-in-law, who does rehab work for a living, so I can become educated on the cost and process of the project. Pending inspection, I may replace the furnace and water heater to save on any potential repairs in the coming years.

I was able to get the house for 20% down in a conventional 30 yr mortgage with a lender that will allow me to transfer the title into my LLC while keeping the mortgage in my name. I'll be self-managing, so after taking into account mortgage and taxes, along with 5% for CapEx, repairs, and vacancy, I'll be grossing $1,000/month and netting ~$350/month. I won't be able to increase the house's value to the point that I can BRRRR it, but getting the first property under my belt is awesomely gratifying. I definitely understand the addicting nature of the business!

Thank you again for the support -- I'll be sure to recap once renovations are complete for a before and after look!  Many more properties to come.