Purchased my first rental property!

[Chandler Calvert]

What’s up I’m chandler and new to bigger pockets. I’m 24 and live in Arkansas and just purchased my first rental property. I acquired a 2 bed 1 bath 1,264sq ft home built in 1961. It honestly doesn’t require any work to be tenant ready but may improve a few things. I ended up getting it for $49,900. I worked with a local bank to secure a conventional loan for around $42,500 after the required 15% down and ended up with a 7.25% interest rate. Basically just looking for suggestions on where to go next with the rental property business and looking for pointers to keep me from making large mistakes. This property in our area should go for around $650-$675/m and once I feel it’s ready I’ll be starting to accept tenant applications.

[Brian Adzadi]

@Chandler Calvert

Congrats on attaining your first rental my friend. Your journey to financial freedom begins here. However, I have to say, the interest rate on this house is pretty steep. Is that what interest rates for rentals going for nowadays or is there more to the story?

Anyway, the first half of your obstacle is acquiring the property. The second half is finding a good quality tenant. I used mysmartmove.com by Transunion when it came to obtaining background checks. They do criminal, eviction, and how much they make compared to your rent. Don't let someone give you "3-6 months rent in advance", you are just looking for trouble that way. Walk them to their car and see how the inside of their car looks. How they treat their car will tell you how they will treat your house.

Read up on housing discrimination laws. Make sure when you make your advertisement that you are not violating any of those laws because if someone sues you for discrimination, you will have to pay $10K in fines.