Closed on Our First Deal!!

My wife and I just closed on our first RE deal!!! It wasn't perfect by any stretch but we are finally in the game! 

The home price was $105,000 for a 1952 3 BR 2 BA home that already has established tenants. There previously a few renovations completed by the homeowners over the years including a new roof, bathroom updates, kitchen updates, & appliances. 

We used owner financing and didn't have to bring any money to the closing table other than the attorney's fee, excise tax, county recording fee, and prorated property tax.

We increased the rent from $1,023 to $1,050/month which isn't a huge increase but it $27 more a month in my pocket!!! I'll take it.. There are 3 tenants paying $350/month which is a great deal for the tenants. We are using a rental income platform called COZY to collect rent and our first payment along with security deposit is due October 1st. 

The owner of the property was a friend of a friend which is how we got such a banger deal. It was their first home purchase in 2012 but they had recently moved into a new home. It took a simple phone call and the owner told me that he had just paid off the mortgage and was willing to sell. The property definitely needs some work but will cash flow about $150/month on a 15-year mortgage. 

I rented a mini excavator and supplies to dig a french drain around the whole back and side of the home.. I plan to start renovations on the weekend of October 28th. There are some moisture issues in the crawl space and this is our main concern up front. I will try to update with pictures in my next post. 

I will also be posting some general pictures of the home so you can see what we are looking at. 

God bless,