First Real Estate Investment Property

[Paul Farmer]

I’m finally working on my real estate investment journey and I would like to know what you guys think about this situation that I’m in. This is my first property of purchasing. If you were in my current situation what kind of options or strategies or next step would you take...

Duplex property was listed for 170k, but owner is remodeling one side and is putting 20k-30k into the property and is asking 195k after the remodel. Rental income is about 2100 monthly. It's next to a military base so vacancy isn't going to be huge problem. There are some cosmetic issues and little things needing to be fix or replace on the other side but both sides will have brand new appliances in kitchen. Good neighborhood. I will be financing this with the VA Loan with a very low interest rate less the 3%.

[Paul Farmer]

hey @Matt Walker, so when I take full possession of the property there won't be any big fixes to be made to the house, one side of the house is getting fully remodeled and the other side is move in ready. So I would still put about 6% to 8% for Capex.(which I think is a good number-unless I shouldn't?-). The $2100 will be after the remodeling and both sides occupied. I will be house hacking for about 3 months but I'm just thinking about both sides rented out. there are no HOAs. and the tenants will be paying for all utilities.