First, thank you to the BiggerPockets community for all the information offered, resulting in enough reassurance to move forward investing. I found BiggerPockets about a year ago, after attending a local guru 2-hour introduction and realizing that wasn't the right path for me.
The Oregon market is pricey, but our ideal goals are buy and hold rentals. I did some leg work driving for dollars, watching the MLS via Zillow, monitoring Auction.com, and getting educated on BiggerPockets. I found a townhouse condo in Keizer, OR that was on the MLS, but a cash-only purchase. It's an hour away, but we jumped in, using our savings and an equity line of credit.
I certainly took on more than intended and more than I realized. I thought I would have to flip the property, but was able to get enough rent to keep it. It was a great education, but hardly a home run. The kitchen, bathrooms, roofs (townhome and garage), windows, flooring, paint, almost everything is new. I had the HVAC serviced (not replaced) and didn't replace the water heater, because both were in good shape.
Here are the numbers: Purchase with closing costs for $98,000. Remodel and holding costs at $50,000, which I anticipated to be $40k at most. Monthly HOA at $250/mo. Final Rent price: $1,600/mo.
I have not completed the cash out refinance, as I'm waiting for the 6-month mark in a few more weeks, but anticipate PITI to be $1,000/mo. $250/hoa. $160/PM. $80Capex/maint. This leaves just around $100/month cash flow. I'm also self-managing for the time being, which sweetens the deal. I believe ARV will be around $198,000.
If I can finance 75%, that leaves very little of my money in the property. At 70%, that would leave about $10,000, which should be 13% Cash on Cash return annually.
I haven't made many posts here, but let me know what you think. Now onto the Refinance and Repeat.
Good luck to all of you in your ventures.
