1st deal done

[Karl Maritato]

Completed my first apartment complex deal today. 11 unit building, newly refurbished by seller, fully occupied by tenants with great returns. All thanks to the knowledge and connections I made through BP. Looking forward to doing at least one per year. Thanks BP community!

[Karl Maritato]

Thanks guys! I used a commercial loan with a large bank (PNC), 20% down amortized over 20 years. My "real job" is incredibly intense and long hours so I need to be as hands off as possible and have a property management company dealing with all the day to day details. After mortgage and expenses, including PM group, I'm looking at about 1500/month cash flow. I did pay asking price, however, this property was not on MLS and was one of those "my realtor knew another realtor" type of deals and they knew it would be a great "starter property" for me. What stood out the most is the building itself is 40 years old, but was purchased by the seller 4 years ago for something like 29K and was completely redone...the only remaining original structure is the skeleton itself; so basically the property is 3 years old, including all wiring, plumbing, etc. Therefore I felt very comfortable not having large expenses likely in the very near future and the neighborhood is working class and needs good quality rentals, so I'm pretty happy. My realtors have over 30 years experience in this business and are very confident and comfortable that this was a good, safe bet for a newbie to get the taste.