First Rental Property!

[Drew Bonner]

I am very excited to announce that I have bought my first rental property! It is a 4-plex in Lynchburg VA in a great part of the city. Details are listed below:

All units 2 bed, 1 bath 950 sqft

Purchase Price: $198,000

ARV: $215,000

Down payment: $49,500 (25%)

Closing Costs: $6,000 (Sellers paying $3,000)

Equity: $66,500

30-year 4.7%

P & I (Includes Property tax and Insurance): $1,005

Rents: $2,600 ($650 x 4)

Water: Tenant pays

Electricity: Tenant pays

Garbage: $100

Mowing: $60

Vacancy: $100 (4%)

Maintenance: $125 (5%)

Cap Ex: $175 (7%)

Property Management: $250 (10%)

Total Expenses: $1,815

Cash Flow: $785/mo

Cash on Cash ROI: 18%

 Sure, I didn't absolutely crush it here, but the numbers are totally solid and this property appreciates at an average of 4% per year. Plan is to refinance property in 6-12 months and bring out $25,000 of equity to apply towards another property. Sure it will decrease cash flow a little bit by refinancing but we will be able to build a lot faster this way. I am so blessed by the mentors I have and the amount of knowledge and wisdom there is out there for the taking on BiggerPockets.