Finally took the plunge

[Cory Deeter]

After talking about it for years, my wife and I finally took the plunge and got our first rental (3/1 SFR). We bought the place off market from the property manager who is our neighbor. The place had tenants in it when we purchased it and they recently renewed their lease so I've got them for at least the next 9 months. Since we're new to this and we both have full time jobs, I didn't want to manage it myself so we negotiated with the seller who is the property manager to manage the property for the next 12 months at 5% versus his standard of 10%. The inspection came back with one electrical item that the seller fixed.

List price $50,000

Selling price $48,000 (unsecured LOC @ 4.5%)

Seller paid closing costs and electrical item noted on inspection

Lease and security deposit transferred to us

Property management fee discounted to 5% of rent for 12 months

Ten day close

Rents for $750 / month

Next up is to do a delayed financing transaction to replenish my LOC and move to my next deal hopefully within the next few months. It feels good to finally have get my first deal done.

[Cory Deeter]

@Ray Dipasupil the house was built in 1947 and is a little over 2,100 SF (they converted the attic to a bedroom).  

@Nadia Bombino the manager had bought a much larger and more expensive rental unit and needed the cash.  He and his wife bought the place when it was foreclosed and did the renovations.  It was their first rental so my wife and I thought it would be a good starter for us.