Nervous about First Deal

[Danni Green]

Hey People, 

I am pretty new to real estate investing. Just a little tiny background on me is that I'm 22 years old, new grad working as a Automation/Robotics Engineer. My family has a real estate business so while I am new to real estate investing myself, I know a lot about the business/ the market/ what needs to be done & what needs to be avoided. 

I'm investing in my first property. It's really cheap (20k paid for in cash) needs an estimated 25k in repairs and estimated home value after repairs is $60k, it can also rent for $750 or more once done. It is in the area I grew up in so my family is going to be a huge help assisting in hiring of the contractors and making sure everything goes smoothly. 

I'm just really nervous though. I keep thinking what if I made a bad deal... My original plan was to buy a multi family unit and house hack in the town I'm working in, but a couple of people advised me not to miss out on this deal. It took a bit to save up for my cash purchase on this house and it was supposed to be used for my original goal. But this is the way things are moving and I'm just overthinking.  *sighs*

Any advice or similar stories? I am new here btw so excuse me if I am posting in the wrong thread.

BTW (might be informational, might not): I just signed the purchase agreement yesterday, but just waiting on seller to sign their portion. 

[Carl Millsap]

@Danni Green congratulations. Things don't always go as planned, when opportunity presents itself take it.

1. The benefit of your deal is you'll be into a property for less than it's worth. Once you complete the renovations refinance it for 80% of the value which is $48k. 

a. You'll get back your initial investment $20K and the money for your renovations $25k. Now you're into the deal for no money.

b. Take the $48K from the refinance, invest in the multi-family you want to house hack.

2. I imagine you'll have a positive cashflow of a couple hundred dollars once the place is renovated and rented. Again, not a bad thing to have. Put it away for maintenance issues. 

3. Thank the people who recommended you jump on this opportunity. You are the average of the 5 people you spend the most time with, sounds like you have a good group.

4. Rinse and repeat this process. 

Good Luck!