Purchased My First True Investment Property (Multifamily)

[Frankie Woods]

I just closed on my first true investment property here in St Louis, MO. This will be my 4th property, but the first that I will not actually occupy for the first couple of years (active military). I hope to acquire at least one MFR/Year going forward. Here are the particulars:

Purchase Price: $62,000

Gross Monthly Rent: $1640

Monthly PITI (25% down at 4.89% on a 30 yr fixed): $480

Monthly Expenses: $853

Estimated COC: 16%

Estimated Cash Flow Per Door: $135

This is a C property in a C neighborhood.  Hence, the returns might not actually be worth the future headache (vacancies, maintenance, etc.).  Although, I have an amazing, albeit expensive, property management team and a have accounted for the higher expenses in my due diligence so hopefully that will reduce some of the strain.  I'm still excited about the deal, but I'm realizing that I have to do better!  The weekly podcasts are amazing, but every single time I listen to one, I learn about another mistake that I've made... 

[Max Householder]

Hi Frankie, I also live in St. Louis. Where is your property located? How did you find the deal? Who's your property manager and how did you find them? I will be looking at a first investment next year so just curious what other investors are up to in my area. You can send me a Message if you'd rather not post all the details on the forum. Thanks!