New Here. Stilll learning. Got our first two properties ths year.

[Hung N.]

Hello, I am new to BP

My wife and I got into real estate investing this February.

We bought a SFH as our first purchase (we told ourselves for practice) and we are currently renting it out through a property manager we trust. Our projected cash-on-cash return is 9.5% and our monthly cash flow is about $275.

I think we made a mistake on this one since we wanted at least 13% cash-on-cash return and to cash flow around $400 after all expenses are paid.  The mistakes were underestimating the initial cost to make the home move in ready and forgetting to add in the cost of getting the loan itself to the base cost of the property.  But we are happy that we are getting positive cash flow so long term wise we should turn a profit.

A month later with one house under our belt as experience, we paid all cash for a 4 unit multi-unit.  We decided to go all cash for $225k since we thought it was a good deal (owner was retiring and wanted to liquidate all his properties) and wanted to outbid anyone else.  Since it was all cash, cash flowing positively is almost guaranteed.  We plan to do a cash out finance on this multi-unit property once we figure out what the actual monthly income will be after taxes and other expenses.  This property had some upfront work to do for the one vacant unit (paint, new floors, and windows) so we will have to put in a bit more money into it.  If anything, I will always expect to put in extra money in after we get a new home.

Overall, we are excited but a bit nervous at the same time on our investments. But the numbers look right on paper. If everything works out we will probably buy another multi-unit or 2-3 SFH this year or next.