My First Rental Property Purchase

[Michael Bennett]

My First Purchase

As of 12-21-2018 I have completed my first rental property purchase. The previous deal was going to be multiple SFH but I decided to go with just one home to begin my landlord career and not overwhelm myself. The house is located in Tulsa, Oklahoma in a class D+ neighborhood. It's 1128 SF on a 7200 SF lot size. The property is 4br and 1ba.

Purchase price was 58k with a 20% deposit. The deposit plus closing cost was a total $13,456.03. I have a 15year conventional loan with an interest rate of prime plus 1% (my current rate is 6.5%). My monthly expenses are $410 for mortgage, $82 for insurance, and $38 for taxes for a total of $530. Not including the repair rate and vacancy rate. The good thing is that the property already has a tenant paying $820 a month that is being paid in full by Section 8.

I decided to start my investing in a class D neighborhood because I have always wanted to give back to the community I was raised and this is one way by providing affordable and safe housing!

I am looking forward to what 2019 has in store for me!

[Corby Goade]

Awesome, @Michael Bennett! Sounds like a good, cash flowing deal and I LOVE that you are trying to give back to your community. 

Do you have a long term vision for what that looks like? It would be cool if you could "own" a block or two in that area and update/bring a pocket back to life, improving the area and quality of life for your tenants. Sounds like you are well on your way.