Just closed my first deal!

[Thomas Shaw]

Hey guys,

Just wanted to thank everyone that spent time answering all of my questions(some pretty bad ones too) to this point. I just closed on my first deal yesterday. 

I know this means that I'm still just starting on this journey, but I feel like it's a pretty big milestone and just wanted to share it with y'all.

[Thomas Shaw]

Thanks for the kind words.

As for the deal itself, here are the details.

It's a normal, single family home, a 2/1(~1100 sqft), but it has a detatched garage with a add on 1/1(~450 sqft) above it.

I paid 97150 with 20% down. The closing costs were about 1500. My interest rate is 4.625 and I was charged .04 points. 30 year.

For taxes I estimated about 2700, but I expect them to actually be a couple hundred lower. I just like to be a bit on the conservative side.

For repairs, they are very very minimal. The main 2/1 needs next to nothing. It's in fantastic shape. They even threw in all appliances(which are in great shape) and a TV. It even has a small waterfall in the back yard that the previous owner installed. Also has covered parking for two cars, and the garage that the apartment sits on is a 2.5 car garage, off street)

For the garage apartment, it really only needs carpet, paint, and a new AC(window unit.) So I estimated around 3k for everything.

For expenses I just estimated 8% for vacancies, 8% for repairs, 5% for capex, and 8% for management fees(even though I plan on self managing for the foreseeable future.) For insurance I estimated 200/mo, and it came in a little lower at 180 a month.

As far as rent goes, I should, at the absolute worst case, be able to get 1400 between the two. I'm pretty confident that I can get 1600-1700 though.

That puts my ROI @ 1400/mo right at 8%, which I know is a little low, but I also felt even at this ROI that I'd be happy enough to just finally pull the trigger and learn some stuff.

At 1600/mo my ROI is just a little under 15% which I would be extremely happy with.

I'm positive I've made some mistakes along the way, but I think I'm just really happy to finally stop reading and thinking and just do it.

If anyone has any other questions, please don't hesitate to ask.