Been waiting to make the post for a long time..

To preface: I found BP two years ago (when I was 19). However, only recently have I felt qualified to make an account and offer my opinions to the other members on the site. During these two years, I listened to all of the podcasts, read the guides, bought RE books, and immersed myself in education. I saved money, searched for literally anyone that would finance me, and scoured the internet for deals. I also took a real estate pre-licensing course to help with my education and to give me the option to become an agent if I wanted to (which I have).

On March 4th, I closed on and became the owner of a triplex located in Chester, NH. I found the deal on craigslist (which was a FSBO) and put it under contract literally the day after the seller posted it. For those who are not familiar, Chester NH is a very small town, so small that this is one of three multi family properties in the entire town. It is currently filled with qualified tenants who intend to stay for a long time. Essentially, it is a dream property for someone with minimal landlord experience such as myself.

Closing price was $194,900 and I used a combination of conventional financing and private money to finance the deal. After talking to literally over twenty banks and credit unions, I found a small, local credit union willing to lend to me after I convinced them of the investment potential and the equity that I would have from buying it under market value. I received a 20% down/30 year/4% Fixed Rate loan, and I financed 15% of the DP through multiple family and friends who I am paying 6% to over a 30 year amortized period with a 5 year balloon. This will give me more than enough time to refi out of their notes and into a single mortgage at market value down the line, which I believe is around ~$235k. This all means I brought 5% of the PP to closing ($9,745). My projected monthly cash flows:

Gross Rents: $2,940 a month

• This is broken down into $1,050 from one 2BR unit, $995 from the other 2 BR unit, and $895 from the 1BR unit.

Expenses:

PI: $919

Taxes: $291

Insurance: $183 

Maintenance/CapEx Expense: $441 (I used 15% on monthly rents to be safe. There is some maintenance I expect to encounter in around 3-5 years as well).

Vacancy: $294 (Used 10% of Monthly Rents. I expect this number to be much lower given the desirability and competitive rental market the property is in.. Don't expect more than a few weeks of vacancy each year.)

PM: $294 (I will manage, just entered this expense as a safety net).

Heat: $210

Electric/Water/Trash: $0 (Tenants pay electric, property utilizes a private well, and the town dump is literally located across the street).

Net Monthly Cash Flow: $307

Net Monthly Cash Flow if I Don't Include PM Expense: $601

While this number may seem low to some of the members on BP, it is important to note that cash flow is harder to come by in New England than in many of the southern/midwestern states. All in all, I couldn't be happier that I finally own investment real estate! Have to give a huge shoutout to everyone on BP as well as Joshua Dorkin and Brandon Turner for producing an incredibly helpful podcast!