We finally did it! Oh boy...

[Brad Fithian Jr]

Monday, June 30th me and my closed on the purchase our first buy and hold property! I have been learning and learning and studying and looking and analyzing....probably like a lot of people right now. Well, we finally did it! So if you are out there right now and are thinking to yourself that this will never happen, don't give up. I have been researching and studying and analyzing properties for over a year. Things will come in time, and patience will prove your greatest asset. Just hang it their, it will happen. Our first steps to financial freedom and the life that we desire. So here is the deal:

Purchase Price: $45,000

PITI: $409.62

Loan: 5/1 ARM, 3.5%, 20% down payment

Estimated Rent: $1200/month

15% Maintenance/ month: $180

8% Vacancy/ month: $96

Cash Flow/month: $514.38

So we did need a good chuck out of our pockets, which kind of limits our capital for the immediate future. This leads me to my negative, which I am still not %100 clear on yet. I thought that the house would be appraised at higher than it was. It still could be, but that doesn't see likely. That's okay though because at the end of the day, we are still cash flowing over $500 a month!

So there are the numbers. Wow. Never thought a year ago we would ACTUALLY own our first rental property. About another 1-2K in rehab work before we rent it out and we are in business. This IS possible!

[Brad Fithian Jr]

Thanks @Matt Devincenzo ! and thank you for the info. Let me ask you question. So let's say I wanted to refinance in a month after the property is rehabbed a bit. Would the appraisal stay basically the same because that is what I paid for it, or would I have added value and now be able to cash out with the available forced equity? Just wondering. 

BTW, I love the Acts 2:42 tag at the bottom! Great stuff.