First Deal as a Newbie

[Andrew P.]

I am the typical bigger pockets newbie story. Been listening to the podcast 4 years frustrated and spinning my wheels. Been under contract on a few but they fell apart on inspection. I have a 2/2 932 Sq ft under contract 15 minutes from my house for $145k. Plan to put 20% down and finance the rest at 3.5%. It should rent (per BP, rentometer, zillow) for $1200 a month. It is in great shape and move in ready, however because of that it is only worth around $145k. I'm paying market price. With 7% Repairs, 5% vacancy, and 7% Capex I stand to cash flow $289 per month with 10% coc. The plan would be to self manage so I can learn the ins and outs of PM and to hold for 10+ years. It is certainly not a deal that will make anyones radar but for me I think it would be a great base hit to use the baseball analogy. I understand many are saying wait in this market but I've been waiting for a long time. Any advice would be appreciated. Thanks

[Joe Villeneuve]

Never accept a property that isn't a deal. Not saying this one isn't a deal, just saying that you are not a property collector...you are a REI.

I've paid over market price and made more money (immediately) than another buyer would have made if they got it for 10% less than market price...and it wasn't because it had a big equity base or appreciation in the future (they did, but that had nothing to do with the reason I made a killing on it...immediately).

When buying for profit and/or cash flow (there are no other reasons to buy), the TOTAL cost is NOT important.  What IS important, is much YOU pay for it...and how.

When selling or cash flowing, the total profit and/or cash flow isn't as important as how your receive it.