First Deal Done

[Jenny Duclair]

I joined BP a while ago, maybe a year ago.  At the time I knew (like I had known the last 15 years) that I wanted to get into real estate investing and grow it to the point of living off the rental income.   I closed my first deal on June 6th and got it fully rented out earlier this month.  After the mortgage, insurance and taxes I've got $1k to cover repairs and maintenance and lawn care.  I got the seller to take care of a lot of the deferred maintenance before closing by offering a generous (but not crazy) purchase price. 

I got $5,500 seller credits at closing.  

I spent $3k on the Unit I turned over.  The other unit I took with the tenant in place.  Tenants pay all utilities.

With basically $800-$1k net profit per month I'm okay with the upfront expense. 

My tenants deposit rent to my bank account.  I have a handyman with broad range of skills and who is very happy to work at reasonable prices (with an assistant) and will travel practically anywhere in the region for me.  

After the month I spent turning the apartment over I am hands off.  I am now looking for my next property.  Since this first one was done with conventional financing, I'm looking for a seller financed multifamily deal.  Of course I'm open to other options.  Mainly looking in Palm Beach County Florida.  I'm a buy and hold person.  Let me know if you hear anything.  

Wishing Success to Everyone!

[Jenny Duclair]

Originally posted by @Albert D.:

Jenny Duclair

Congratulations! I'll close my first deal this month. Quick questions if you don't mind: do you have your inherited tenants sign a new lease with you at close or the estoppel is enough? If don't sign new lease, how the next renewal works as it'll still be in previous owner's name? Do you put property under LLC? If so local or out of state LLC and why? Many thanks.

 I had my inherited tenant fill out an information sheet much like an application I would give to a prospective tenant (since that information wasn't passed down from the prior landlord, need an SSN to evict). 

Since all the rights and obligations of the lease are transferred to the new owner, your name is basically substituted wherever the prior landlord's name is on the original lease. So renewal isn't a problem in that regard. 

Tenant was on a month to month which most landlords will do when they know they are about to sell, they won't renew leases in case buyer wants those tenants out. 

One tenant definitely had ro go before I would even consider closing on the property. The other tenant I gave a two month window to see how things go. They've adjusted and responded well to the changes I implemented so I am sending them a new lease to sign this month (I'm not even calling it a renewal, it's a very different lease from what they had before). 

Hope this helps.