Newbie in Valparaiso, IN Closing on First Deal

[Brandon Mattingly]

Hi BP Community!

I'm so grateful to have stumbled across this fine group of people on the internet. It's truly been a gift to glean so much wisdom from both the site's original content and the forums to help me get started on my REI journey.

I close on my first buy-and-hold rental property in 10 days and MUCH of that is due to the gained knowledge and confidence I gained from this resource.

I've been applied the knowledge gained to analyze my hometown and surrounding area. I live in Valparaiso, Indiana, and have looked at homes in Chesterton, Griffith, and Crown Point as well. This is where I grew up and so I'm pretty familiar with the neighborhoods and school systems.

I initially was looking for small multi in the area, but I quickly saw that they be at the top or outside of my budget of $300,000 for a rent-ready multi. So Single Family became my focus. And with rents rising in this area, I saw that there were some decently cash-flowing properties near the downtowns of the "major" cities in the county.

I am curious to have others weigh in on how I've analyzed my first deal!

Single-Family
Near Downtown Valparaiso, B neighborhood
3bd/1bth
900SF
PP: $150,000
DP: $37,500 (25%)
CC: $5500
Rehab: $7000 for light cosmetic fixes and couple appliances replaced, doing self
Est. Rent: $1350
Vacancy: 5%
Capex/Mtnce: 10%
Tax: $2700
Ins: $450
Finance: 30yr @ 3.625% Fixed
Mgmt: Self
COC: 9%

I know it's not a home run deal, but I'm excited just to take the first step in investing and managing a property. Any thoughts on the deal?

Once I have the property leased up, I'll likely be on the hunt for another. I'm considering using a HELOC on my primary property which would give me about $80k for the next deal.

Anyways! Just dumped all that out in the open to share where I'm at!

My primary job is as a freelance commercial cinematographer, and from that line of work, I always loved turning digital acquaintances into real-life relationships. If any one in The Region ;) – agents, investors, contractors, wholesalers, etc – would like to connect, I'd be happy to buy you lunch!