My First Out of State Investment Purchase

[Juvawn Parker]

I recently closed on my first deal this past weekend. It is a property

that is located out of state, about 2-3 hours from where I live.
The numbers are the following:

Purchase Price: 70k
Downpayment: 14k (20%)
Closing Costs: 5k
Interest Rates: 3.625

The property already had a tenant in place and they pay $750.00 monthly. My expenses after PITI, vacancy, maintenan/repairs, etc comes out at $633.00 leaving me with a net cash flow of $116.32. Thats a little over a 7% cash on cash return. The best part though is that the property was managed by an older property manager/landlord so even though the rents are $750.00 currently, the market rents for similar units are $895 and upwards. That leaves plenty of room for the property to grow. After doing the math, if I could increase rents to $850.00 a month, my cash on cash would sky rocket closer to 12%. All in all I am pretty happy with this deal and I wanted to share it on the platform that made it possible for me to attain so much knowledge. So thanks to every investor that took the time to answer questions that I had, it truly does go a long way.

There are still some things I have to do for the property management side, but as of now, I am happy. After reading that, is there anything I should be on the lookout for? I have cash reserves in place for emergencies, and the mortgag is so low that I can afford to flip it for awhile until i can get a new tenant in there if that does happen (which I doubt it will since they have been on time so far). If you think of something I should consider definitely let me know.
I also recorded my whole experience on youtube from start to finish. If you want to know what I did as a beginner, feel free to check it out. I have 2 more videos left in the playlist and truly break down all line item numbers. All critiques on my methodology is welcome so I can better improve my strategies going forward. Thanks again to all members on this platform for the wealth of knowledge being shared, to make things like this possible for a young guy like me.

Out of State Investing - YouTube