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Updated over 7 years ago,

User Stats

319
Posts
103
Votes
DJ Cummins
  • Rental Property Investor
  • Bethalto, IL
103
Votes |
319
Posts

Finishing up our 2nd year...just closed on property 3, unit #6!

DJ Cummins
  • Rental Property Investor
  • Bethalto, IL
Posted

Hey everyone!  Last night my wife and I closed on our 6th unit.  We purchased a single family home in Bethalto, Illinois(about 20 minutes from downtown St. Louis, Missouri).  This is a 900 sf, 2 bed/1 bath home, and we are really excited about it.  The house was 3 bedrooms, but one small bedroom was turned into a laundry room.  I feel like we are really getting the hang of this whole real estate gig.  We closed at 4:00 yesterday.  We met both of our contractors at the property at 5:00, already have the bids as of this morning, and contractor 1 is starting on Monday morning!  We should be ready to rent in approximately 3 weeks.

The numbers: 

Purchase price = $55,000.00

Down Payment = $8,260.00(after $3,500 in seller concessions, plus funding the escrow account)

Debt Service: $44,000.00.

Repairs: $9,700.00(Let's be honest, this will probably end up a bit higher by the end of the remodel)

ARV: $75,000-80,000

The repairs being completed: New furnace, new A/C, new electric Water heater, flooring, paint, closing in a doorway that leads to the laundry room, a few GFI outlets, backspalsh, new countertop, and a new sink.  The bathroom was already updated about 3 years ago.

Rent: $875(might try for $900 first, but going a bit more conservative with $875)

PITIA: $466(on a 20 year mortgage)

Cap Ex: $65

Repairs: $65

Vacancy: $65

Cash Flow: $214.00 per month

Equity: Roughly $20,000.00

It feels really good to get three of the biggest cap ex items installed brand new before we ever screen a tenant.  We are excited to get this one rented, save a few bucks over the next few months, and do this again by the end of the summer.  What an addiction! 

As always, thank you to BP and all of the members.  Without your success stories, advice, webinars, podcasts, FB posts, and support, our business(and our motivated drive) would not be where it is today.

Best of luck in making this a happy and profitable year!

DJ (and Erin) Cummins

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