I spent months, more like years, researching and investigating. Getting my finances in order. Or more like credit. Then the world shuts down and real estate loses its mind. So I waited a little longer and here we are. I did my best to not focus on what numbers and deals looked like before now. And didnt stress over what they could or might look like in the future. I focused on what I could make happen in the market we are in right now.

To start off I am a vet so I had the VA loan in my favor. When I started out and got pre approved the rate I was given was 7.5%. So I started at least looking at houses. By the time I found something I was willing to put an offer on I had a 2nd pre approval and I let the bank know. I let the fight it out like hunger games for about 2 weeks while putting the house under contract. This was about the 2nd week of December. By the time the 2 banks were done fighting the rate had come down to 6.1%. So with 1% earnest money, which the bank will give me back at closing this is the deal I am walking away with.

6 bed 6 full bath duplex for 2900sft brand new construction at 479k. It has 3 and 3 up and down with 2 bedrooms having an on suite bathroom with a 3rd full size common space bathroom. I tried to come in at I believe 465k with closing from the seller. They countered at 479k with closing credit. I dropped another $750 for the appraisal which came back at 500k. Inspection period begins tomorrow so minus anything major being found wrong we will be able to close shortly after inspection. PITI will be $3738, or drop to $3420 if I decide to pay the home owners insurance up front.

LTR comps put renting 1 unit at between $2200-2500mo. Which essentially leaves me with little more or less than 1/3rd of the PITI to cover out of pocket. I have already ran the math against my budget and even if I never rented it at all I am still good. I am actually in tech so my income is already pretty high and secure. And AirDnA comps has my numbers at $325 a night with a 52% occupancy rate. So that puts me at just under 5 days a month to completely break even and own the home for nothing. And since I have not technically had to come out of pocket for any purchase or closing costs that leaves me with about 15k to furnish the day I get the keys. Or just hold it and start looking for the next property.

This is the first property and I am already calculating how fast I can secure the next.

New Orleans, Louisiana

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