I closed on my first deal!

[Walmsley Gedeon]

Hi Guys, Just wanted to thank the BP fam for all the info they provided to help me make this happen. I closed on a 4 family in NJ. I paid $175k for it. . Potential rent roll is about $5k gross before expenses and after renovation. Mortgage is about half that and I would say another $1k towards expenses. But it needs about $75 in renovations. That is set to begin in two weeks. I must say I'm nervous because I used practically all my savings to get this going. Won't have to much left after the renovation. I won't be broke but it was definitely a strain. I do have a good paying job in finance and I prepare taxes to supplement my income of which I haven't cashed out on this season yet. So I'm not struggling but my thing now is getting this moving and getting to the next property or deal. How long do you suspect that could take? I think after renovations the house should be worth in the $300s. I want to capitalize and get to the next property. What's a realistic approach to making this happen? I just wanted a bit of strategy advice here. How fast can I leverage my new found situation? Thanks BP!

[Christopher Giannino]

@Walmsley Gedeon I think it all depends on your lender but typically you can refinance after about 6 months.  I would make all the renovations and get all the units rented before refinancing out of your original mortgage though.  If you haven't done so, make sure you read this article written by Scott Trench.  After reading it, you'll fully understand why I say wait on refinancing until all the renovations are made and all the units are rented.

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