First rental caught fire!

[Jason S.]

I wanted to share my first "investor oriented" property experience.  This was a cash purchase from a wholesaler that I know.  The day after we bought it, there was a large storm that came through and the power lines caught on fire.  Fire department broke down the door and tore the ceiling open.  What was supposed to be "paint and rent" turned into a few sheets of drywall, new electrical panel, new front door, paint and rent.  Overall the costs of the fire repair were less than my deductible, but it caused delays getting the city to allow us to rent it again.  I put the details below.

4 Bed/ 2 Bath

1344 sqft

Purchase price:  57k

Estimated Repairs:  3.5k

Final Costs After Fire:  7k

Total Amount In:  64k

Rent:  $1150

Cash Flow:  $4820/year after refi

Purchase to rented:  2.5 months

Refinanced the property in December 2016, and closed on the next property 2/10/17.

[Jonna Weber]

@Jason S. -  Nice job. Now you've been through one of those "what if" scenarios and proven you could persevere!