First sub 30k property

[Avi Garg]

Finally closed on my first sub $30k property. This is my first investment since joining BP and 2nd overall. Some quick numbers:

Purchase price $19k

Monthly rent: $715

Cash flow: $330

@Travis Beehler

I was inspired by @Travis Beehler post on his 7th rental in May 2016 and that motivated me to look into sub 30k property in St Louis, MO.  He helped me a lot getting started on this journey and now with one already closed and 2nd closing in 2 weeks, I have started my journey into passive income and hopefully retire in early. I plan to scale it up to 35 doors (or $10k/month in passive income) by end of 2017. 

Lesson learned: Keep track of the paperwork and make sure everyone in the chain gets the updated paperwork. I renegotiated the purchase price to 18k but the lender did not the updated docs and 1 day before closing, this came up. I ended up paying additional $1k as the closing had already been delayed a month and to fix the paperwork it would have been additional week or 2. Some of you might say that I should have fixed the paperwork but I guess I was impatient at that point. 

[Avi Garg]

@Tiffany Campbell How much do you think the monthly payments are on a 20k mortgage (not my property mentioned here)? A quick google mortgage calculator shows a payment of $120 for a 30 yr note at 6%. 

Now try putting the above in the BP rental calculator for a property purchased at $25k, no rehab, 0 closing costs, renting at $700, taxes of $600/year, insurance of $500, property management at 10% and capex, maintenance and vacancy at 5%. You will get your answer.

As many kind folks at BP have said, use the calculator often so you get the hang of the figures.