My first deal

[Eric Terwilliger]

It wasn't an earth shattering success, but I'm learning along the way. 

PP: $210,000

Down Payment: 20%

Closing Cost: $9,500

Rehab: $5,000

PITI: $1425

Rented: $1250 per month

Property Management: $83 per month

I did all the rehab myself to keep costs down, but ended up taking longer on the updates and probably not the best quality work. I'm paying $300 a month to cover, but I was investing $300 a month in stocks anyway. 

Took 5 months to find a tenant so holding costs were rough. 

With appreciation and rent increases, in 10 years i'd see a 7% return if I sold. 

Other than finding a better deal initially, I feel like I've learned what it actually takes to try real estate investment. 

Thoughts?

[Eric Terwilliger]

Quote from @Mohammed Rahman:

Hey @Eric Terwilliger - firstly, congratulations man! You've done what most people only tell themselves they *will* do. You've actually put your money where your mouth is and took the risk to put yourself out there. 

In my personal opinion, and you'd probably agree with this, you could have done a better job on your first deal. But that's with anything, the first few times are going to be bad - that's how you get better :) 

I was curious, why did it take so long to find a tenant? Is the property in a rural area? Asking because that seems like a bit of a question mark if you let the PM company handle the rental and they took almost 6 months to fill it.

 It was a combination of things... 1) I did the rehab my self so it took about two months to complete where it probably would have took a professional two weeks. 2) I priced high at the beginning and didn't use a property manger to discuss what I should price at. 3) By the time I completed rehab it was November in the Midwest so it was getting cold and people weren't as active in looking for a place. 

Knowing what I know now, finding a deal that is good enough to afford professional work that is done quickly will be factored into my thinking.