A Very Merry Christmas Closing!

[Tyler Flagg]

Hello BP world!

I bought my first property (thanks to the help of BP) back in April of 2014 in Oklahoma City.

First Deal in Oklahoma City!

Although I naturally made a number of mistakes throughout the process, I believe that it was ultimately a success. The property has been rented out for a while now and is cash flowing approximately $300/month.

Shortly after purchasing this first property, I made a long-term plan. This plan outlined exactly how many properties I needed to purchase each year in order to meet my final goal. For 2014, that goal was 2 properties…but I only had one…so I started looking around.

In November, I got onto Realtor.com and found two properties in my target market that were being sold as a pair by a fellow real estate investor. The amazing thing I noticed is that they are located literally right next door to the one property that I currently own. What a beautiful coincidence!

To make a long story short, I was able to take a trip to Oklahoma to check out the properties a few weeks later and put in an offer. After a few counters back and forth, we came to an agreement and just had the closing yesterday. It was the best Christmas present I received by far :-)

Here are the highlights...

Property A

• Square Feet: 1,000
• Type: 2 bed / 1 bath
• Market Price: 55k
• Purchase: 47.5k

• Gross Rent: $850
• Operating Expenses: ($256)
• Mortgage Payments: ($187)
• Vacancy: ($68)
• Cash Flow: $339

• Cap Rate (Purchase Price): 13.3%
• Cash on Cash Return (Year 1): 18.4%

Property B

• Square Feet: 1,300
• Type: 3 bed / 2 bath
• Market Price: 72k
• Purchase: 67.5k

• Gross Rent: $950
• Operating Expenses: ($262)
• Mortgage Payments: ($282)
• Vacancy: ($76)
• Cash Flow: $330

• Cap Rate (Purchase Price): 10.9%
• Cash on Cash Return (Year 1): 15.3%

Thanks to everyone for their help over the last year. Can’t wait to see what 2015 has in store.

Have a Happy New Year!

Tyler Flagg