Starting Out
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Closed on my 1st Investment!
Investment Info
PP- 53k
Closing – 3k
Repairs/Rent-Ready updates: 5k
Additional Holding Cost (Rental and lead inspection, home inspection, etc.) – 1k
All in Costs – 62k Cash
What made you interested in investing in this type of deal?
My goal was to purchase a buy and hold for passive income. After running the numbers and approving of the block, the deal made sense.
How did you find the deal and negotiate?
This was an off-market deal that was sent out via a mass email blast. I opened the email at 2am, scheduled to see it at 4pm and made the offer at 4:15pm.
How did you add value?
The property was nearly turnkey. I made minor repairs based on feedback received from the home inspection and cosmetics updates (repair roof over porch, replace carpet, new paint, new blinds, and update appliances)
What was the outcome?
I have hired a management company to handle placing a tenant and the day-to-day operations. Rental comps in the area will garner $1300 – $1500. I will be putting a HELOC on the property and pulling out 75% of my funds to use as another cash buy for my second property in March.
@Dominique B. Good for you! Nice move starting the new year (insert clap emoji here)
@Bhavesh Joshi so your breakdown is close but my plan is a little different. All in 62k cash, pulling out 50k, cash flow on $1500 rent is $980 ($780 is with 1300 rent), cash flow from 2nd+cash flow from 1st+surplus income pays off HELOC in 6 months. I prefer to use my funds to avoid being too leveraged (which is why only one property with be leveraged at any given time).
@Dominique B. Congrats on the first purchase!
Congrats! Seems like a great investment and a great price in the Baltimore area. How many units is the property?
@Chinyere Orie thank you. It was a duplex converted to a SF. I thought about converting it back to a duplex but I was happy with the returns as a SF. I still may convert it back to a duplex in the future though.
Originally posted by @Dominique B.:@Chinyere Orie thank you. It was a duplex converted to a SF. I thought about converting it back to a duplex but I was happy with the returns as a SF. I still may convert it back to a duplex in the future though.
I love the flexibility! I'm currently looking for MF in Baltimore city so your story gives me hope lol Good luck!
Wow This is an amazing deal! Keep it up!
Congrats, we need to find $62k deals in New England!!
@Dominique B. Inspirational !! Congrats !
@Dominique B. Congrats and thanks for sharing this great summary on your first deal! Look forward to hearing about deal #2!
@Ola Dantis
I was thinking the same. In my local market you would be lucky to find a property with gross rents > 10% PP, 25% is insane! Nice find OP!
When I hear of these I wonder why anyone in their right mind would rent when they could own it in 4-5 years.
@Dominique B.
Congratulations;)
@Dominique B. Very nice. Congrats and looking forward to more posts from you 👍. Glad to see more from folks in the DMV 👌
@Dominique B. Congrats? Are you able to pull a HELOC in that short amount of time? Is there much equity to pull from? (Sorry if these are dumb questions, still learning!)
@Chris Ramos with the bank I'm going with there is no seasoning period required. The HELOC will be based on the appraisal (taking place next week). I've had my realtor resource run comps and it should fall into the 65-73 range.
You go @Dominique B, hitting the 2% rule in a crazy hot market like DC is phenomenal.
Congratulations!
@Dominique B. Congratulations to a great start!
@Dominique B. Gotcha! Thank you. And that was supposed to say “Congrats!!”
@Dominique B. Thanks awesome!!! Helpful info. Thanks.
@Dominique B. That’s a great way to start out the New Year! Congratulations!
Congratulations!
@Dominique B. That’s great. I love the strategy. I am also looking to invest in that area. Let’s talk
@Dominique B. Congratulations!