New member Intro / First Deal

[Eric Holman]

Hello Everyone,

I'm new to REI but I've lurked here and done pro-formas on buildings for fun for a couple years.

I started shopping last winter and right out of the gate found an honest, knowledgeable realtor. Next came my commercial lender Al, who was willing to educate me as we worked. In July we looked at a duplex in the town where I work that had great numbers, was fully tenanted with good people who communicate and in acceptable condition. Closed on that in beginning of Sept.

I paid 7% cap for it, which is... Okay. But I could accept the higher price because the tenants pay their own heat, hot water and electric, so I'm at 36% ROI which seems silly-good. Even if I throw in all the startup expenses and calculate it through the first 3 months of ownership I'm at 31% ROI.

In 2018 we replaced a leaky oil tank and started saving toward some carpentry and electrical upgrades. Got one unit lead inspected and rated Lead-Safe as those tenants are starting a family. 

Plan for now is to sit tight and see if I enjoy this. I'm managing it myself and I want to do a turnover before moving on to another project. So far I'm still having fun. Thanks for reading!