You always remember your first

[Eric Costa]

Hey all,

I wanted to share my first investment with you all.  I've been a BP member since July '18.  That was when I was truly introduced to RE investing.  After taking in all of the podcasts and buying/reading the books i finally knew how to get started as an investor.  Prior to finding BP I was a typical spender; buying whatever, whenever.  Thanks to BP I had finally realized a goal that I wanted to achieve and how to do so.  If I have any advice to anyone looking to get into RE investing - GET YOUR FINANCES IN ORDER.  Budgeting and putting my money away with a goal in mind made my job have a purpose.  

For 2 years I focused on getting my debt under control.  Saving money and paying off students loans until they were manageable. I thought the outlandish $1,200 a month payment was going to stay with me forever.  Now those loans are scheduled to be fully paid off in just under 5 years.  

Over that time frame,  I would analyse properties of all different types, in a myriad of locations.  Slowly learning the ideas behind what makes a good investment.  I was completely overwhelmed though.  I didn't know where to buy, or how much money I needed.  AND then it happened...

I was looking through Trulia and found a condo in a complex that I recognized.  It was in the town i grew up, I also knew a real estate agent that works in that exact area.  After confirming with my agent, the numbers worked.  Listed at $115,000 the same exact unit just sold two weeks prior for $165,000.  It needed some work including new floors, kitchen cabinets, and a new bathroom.  I decided to put an offer in at $100,000 which got accepted!  

The property is about an hour outside of NYC. It is a 3 bedroom, 2 bath condo. HOA fees are 285$ and the association is in good financial standing. The same unit fixed up is averaging $1550/month in rent. Using a conventional 30 year mortgage and putting 20% down I'm looking at roughly $1050 in operating costs per month.

I built my team, without even knowing it.  My agent was able to reaffirm the costs, and negotiate the buyers down $15,000 (a little less then my reno budget).  My mortgage broker helped negotiate seller concessions to pay for closing costs so I'd have less out of pocket expenses.  My Attorney was a recommendation from my agent, they have been budget friendly and extremely helpful.  The Inspectors and appraisers have also been great people.  I've learned that just having 1 or 2 great people on your side will help bring in other great people as well.  They wouldn't want to work with bad inspectors, or attorneys.  

Closing is scheduled for February 11th, 2019.  I'm going to be doing some renovations and I will post some more information with actual finished numbers in the future.   

Thank again BP. Here's to helping me make it finally happen.