My first buy and hold property

[Mike Rosso]

Hello BP! I just closed on my first buy and hold property and wanted to share my success with everyone! I never would have been able to do it without the help of the BP community!

I actually considered getting into REI over a year ago, however I was quickly talked out of it by friends and family. Then in the spring of 2017 I was referred to BP by a friend and I finally found the courage to jump in! This year I have read alot real estate books, listened to many of the podcasts, and done research in the forums.

I would like to give a special thanks to @Michael Swan for all of your advice and encouragement along the way. I purchased a duplex in Euclid, Ohio on December 12th from Swanny and here are the numbers.

Purchase price =$60,000

Rent =$1350

Mortgage = $233

Taxes=$217

Insurance=$69

Property management =$135

Vacancy=$108

Maintenance =$135

Capex=$108

Tenants are responsible for all utilities.

Total cash invested=$18,302 (25% down)

Monthly cash flow=$345

Annual cash flow =$4,140

COC =22.6%

[Michael Swan]

Hi @Mike Rosso and all that replied,

I'm glad I could help Mike get started!!  I still have 4 single family in that area and a 12 unit there too.  If Mike gets 9 more little deals like that,  (his numbers are a bit conservative) and if he kept plenty in reserves like I suggested to begin, he could get about $40,000-$50,000 cash flow from 9 little rental properties (duplexes).  That's what I did when I purchased 10 little single family here in San Diego in 2011-2012.  To my delight, all 10 nearly doubled in value and I 1031 exchanged them for apartment complexes in NE Ohio in Mike's neck of the woods and went from $50,000 cash flow to the current $160,000 cash flow per year.

Swanny