Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
General Real Estate Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 10 years ago on . Most recent reply

User Stats

18
Posts
7
Votes
Richard Rockwood
  • Rental Property Investor
  • Springfield, IL
7
Votes |
18
Posts

Flip # 1

Richard Rockwood
  • Rental Property Investor
  • Springfield, IL
Posted

After months of creeping on Biggerpockets.com and listening to countless podcasts during my morning runs (Great idea for those that run), I've negotiated a deal and now have my first property under contract. 3 Bedroom 2 bath house. Home is a REO and will be purchased with cash for $27K. Estimated rehab budget of $12K, holding costs of $250/month. Fannie Mae has a clause that prohibits me from selling for greater than 120% of the purchase price for 90 days after the deed issued. This shouldn't be a problem however, I'm doing most of the work myself until I build a little more capital and it will likely take me 3 months. My plan is to replace a couple windows upstairs, fix a few minor drywall issues, and paint, as well as refinish the cabinets and change hardware, and landscape. According to our Realtor the ARV is roughly $68K, but I tend to be a little more conservative and think that it will sell for $60K. Also, at the end of the day, I could rent it out for $800 if I absolutely had to. This would insure that the rent is 2% of the amount I have in the house. Cash-on-cash wouldn't be great though because I paid all cash... What do you guys think?

Most Popular Reply

User Stats

129
Posts
78
Votes
Paul Wurster
  • Investor
  • San Antonio, TX
78
Votes |
129
Posts
Paul Wurster
  • Investor
  • San Antonio, TX
Replied

I'd keep it as a rental. You can always refinance it after you are done and you have a renter in it. This will make your cash on cash look better. It will also start your long and successful track record.

Loading replies...