My First Buy and Hold

[Andrew Dean]

Last November I closed on an owner-occupied duplex in Provo, Utah for $280,000.  We put 10% down with a Portfolio Loan from US Bank but since my wife is an agent, we got 3% right back.  Seller paid closing costs which were around $5,000.  So the adjusted down payment is $19,600.  We put $21,000 into fixing it up.

On July 17, 2016 we got our appraisal back for $350,000! We took out a HELOC for up to 90% with a 4.25%, so about $65,000 to spend on more properties. We moved out of renovated side and rented the bedrooms out to singles. Our new rents are now $1200 (renting out to a family on the non-renovated side) and $1800 (rented out to singles on the renovated side).

Purchase Price on November 18, 2015: $280,000

Down Payment: $19,600

Previous Rents: $960 and $1040

Renovation Costs: $21,000

New Appraisal on July 17, 2016: $350,000

HELOC: $65,000 at 4.25%

New Rents: $1200 and $1800.

Cash Flow: $1400/month

My wife and I are pretty pumped now and are closing on a 4plex in Salt Lake City, UT next week!