First buy/hold closed, cleaned and rented!

[Chris Stromdahl]

Nearly one year after we started pursuing real estate investment, my wife and I have purchased, rehabbed and successfully rented our first buy and hold property.

Purchase price: 105K

Down payment: 15,750

Closing costs: 1,200

Repair, rehab and upgrade costs: 1,300

Total capital investment: 18250

PITI: 700

Rent: 1,150

Monthly cash flow: $450

Cash over cash: 30%

Annual NOI: 10%

These numbers don’t take into account vacancy rates, but it is still solid up to 10% vacancy. It only took us a week to rent, so in the current market I am confident we will stay well below that.

Overall, I am very happy with the results. It is a very attractive house in a good neighborhood. Though I am not banking on appreciation, I do see the long term potential of appreciation being in our favor.

Thank you to the BP community. I could not have done this without all of the help and support you have given me over that last year.

Specifically, I would like to thank Marcia Maynard and Curt Bidwell.

@Marcia Maynard Marcia, your tenant screening questions were key in filtering out applicants from the beginning and making sure that we were a fit for them as much as they were a fit for us.

@Curtis Bidwell Curt, your guidance post purchase saved me time and energy. I look forward to our next coffee.

It was interesting because at one point in my research I was considering out of state purchases. The Puget Sound region is expensive and I did not think I could buy here and realize the returns that I wanted. I spent a considerable amount of time looking at properties in areas such as Columbus, Baltimore and Nashville. This was valuable because it gave me an opportunity to talk with a lot of different real estate professionals. I learned something from each of their perspectives.

I am glad that we came full circle back to the Puget Sound and can now see that buying successfully here is possible.

We are on to our next property, going to see ten different houses tomorrow. Keep you posted.

Thanks, Chris