Newbie in Phoenix... first deal done. Now what?

[Lee Hines]

After listening to Bigger Pockets shows for weeks, I decided to NOT watch Dancing With The Stars! My first move was to rent out my son's old bedroom to a friend. That wasn't too tough as I mostly spend time at my girlfriend's house anyway. Getting rent for a couple of months really got me thinking it was time to find a property.

When a "What do you want to buy" thread popped up on my local Facebook community page, I answered, "Investment real estate," just to see what happened. No surprise that a few agents responded that they would love to help. One said she had worked with a lot on investors, so we began a dialogue about what I was looking for. After a couple of offers got turned down, she called one day very excited about a potential property. It was well below market, but hadn't been lived in for years. It was Thursday and the property would hit the MLS on Friday. We made a quick run through and submitted the offer that evening. ARV was just under $200K, and I paid $130K cash. A few months and $20K in rehab costs and it was not only rented, but the tenant really wanted to buy, so he paid for a 2 year option to purchase at $210K. Selling wasn't the plan, but I've found being flexible in business has always worked out for me. Whether or not he'll actually buy is yet to be determined, but either way, I'm really happy with the outcome of my first deal.

Now I'm trying to figure out what to do next. I added a second tenant to my personal house and am trying to decide my best course of action. I haven't had W2 income in years so traditional financing for another property isn't likely. Both of my houses are free and clear, but it's frustrating that even with other assets, banks won't lend to me. I may sell the first house and buy two less expensive properties, may put down a sizable down payment and partner with a friend... still working it out, but am excited about the possibilities!