First rental acquisition since joining BP

[James Masotti]

So historically I've been terrible at keeping these sort of deal diaries, but I'm hoping the BP community will help keep me honest...and updating. 

Back on February 22 I closed on my first rental property since joining BP and deciding I'm going to get more serious about my real estate investing.

This was an off market property...which I found here from another BP Member, in the Marketplace! So those of you who think it's only the people on the Podcasts who have these kind of things happen to them...you're wrong. If you want to get serious about your real estate investing, I'd strongly suggest you go Pro and set alerts for your market so you can also try to take advantage of these types of opportunities. 

I was definitely nervous on the transaction as it was my first time using private money...and the owner needed to sell fast. I did my initial inspection of the property and things looked to be in pretty solid shape requiring only cosmetic work to be done. I crunched the numbers as best as could from research I have been doing on BP and from reading J Scott's books for the properties I've been looking at to do flips. I called my private money lender and we reviewed the deal...both agreed it made sense and we closed about 10 days later. 

I'm now in the process of brining contractors through the property to get bids and hope that I'm at least close to what I planned for the repairs to be...which have already gone up quite a bit more than my original estimates. 

I'll provide more details in a future post, as I have some work to do for my W2 tonight...but wanted to get this started so that BP can keep me honest and keeping this updated throughout the process for others to be able to learn from.

Property is located in Wilmington, Delaware

Purchase price $35,000

Original repair estimate $10,000

Current repair estimate $20,000

ARV $90,000

Expected Rent $1150

[James Masotti]

@Sean Tracey - Yes I will be using a property manager. My intention is keep all my rentals under property management since they're about an hour or so away. 

And as for another update. Work started on the property just this week. There were some changes to scope and it looks like I'm going to end up even more over budget than what I called out in my original post. The little things can add up pretty quickly. Current target completion date for the work is April 15 with the goal being to have it rented May 1. Work will be pretty slow into next week due to the holiday and part of my contractors team being on vacation, but I'll try to provide some photo updates and such next week.