Buyer's Remorse

[Dwayne George]

AHHH!!! I just bought my first rental property, and am freaking out a little bit! We bought the property (in great condition!) for $47,999.  It's an awesome property 3 bed 2 bath, 1,300 sqft, tax value is $110,000, the house next door is for sale for $135,000, and it has long term tenants who have perfect rental history. That being said...the seller was a little misleading about the rental income. He had originally told me it was bringing in $950/mo.  Through talking with the tenants I found out they were paying $795/mo.  The seller then told me that they had agreed to pay UP TO $950.  So I go back to the tenants and they said "NO WAY! We could never pay that much!" I was so excited to buy my first deal that I went ahead and purchased the house anyways. The renters and I agreed on $825/mo. Did I make a mistake? Am I shorting myself? I'm so scared, and excited at the same time!

The numbers up there are all spread out... this is what they look like put together.

Purchase price- $47,999

Tax value- $110,000

Monthly Rental Income- $825

Taxes- $1,312

Vacancy- 8%

Management- 10% (self managing)

Repairs/Maintenance- 10%

Misc.- 10%

[Jordan Williamson]

Do the Tenants have a lease? The lease should dictate the price they pay, NOT what they say they pay. It sounds like you got a great deal if your numbers are correct. Take a step back for a second and do some research into being a landlord. You need to get a good umbrella insurance policy, a strong lease, defined rental criteria for potential tenants, and partners in place such as handymen, and an attorney to handle possible evictions etc. All the information you could ever need is here on BP. You did a great job of jumping in and landing a great deal. Now jump into educating yourself on being a good landlord. Your going to do great!