All Forum Posts by: Eric Terwilliger

@Eric Terwilliger congrats on taking the steps. Hopefully the paydown of principle each month is at least 300, or you really are negative. Either way you have learned more than any reading could do. Work hard on keeping up with rents and making sure the PM is doing what they need to be doing. Hopefully with a rent bump or two you will be in the black!

Thanks, I plan to reevaluate in 10-12 months when the tenant's lease is up to see what the market rent can handle or what I can do to the house to make it rent higher. There are comps in the area that are getting $1600 in rent, but again professional work does pay off in the end.

Either the comps are off, the PM didn't do their job, or your property needs a lot of work. They have it rented nearly 20% below "comps in the area"

Fixing this all the sudden turns your deal around quite a bit as rent is $350 less than comps...

I would be working on figuring this one out if I was you.

That’s fair, I appreciate the feedback. being my first deal I underestimated what it would take to get the property to match the comps. rookie mistakes were made.

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Quote from @Bob Stevens:

Quote from @Eric Terwilliger:

It wasn't an earth shattering success, but I'm learning along the way.

PP: $210,000

Down Payment: 20%

Closing Cost: $9,500

Rehab: $5,000

PITI: $1425

Rented: $1250 per month

Property Management: $83 per month

I did all the rehab myself to keep costs down, but ended up taking longer on the updates and probably not the best quality work. I'm paying $300 a month to cover, but I was investing $300 a month in stocks anyway.

Took 5 months to find a tenant so holding costs were rough.

With appreciation and rent increases, in 10 years i'd see a 7% return if I sold.

Other than finding a better deal initially, I feel like I've learned what it actually takes to try real estate investment.

Thoughts?

Well you pulled the trigger, but next time get a better deal, this is not good sorry, you are losing money each month, why would you do this ? All in 240k with 1200 in rent, sorry but this is really not good .

All the best,

Sorry to be so direct. If you read my post I always am. I will tell you what you NEED to hear vs want,

I'm paying $300 a month which is equity in the home. Total cash in the deal is closer to $55K.

I agree, finding better deals is the first step. However, I saw this as a first step into real estate investing and the numbers will get better with time and improvements to the home. I didn't upgrade the kitchen at all so there is room for improvement and equity to be gained.

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Quote from @Chris Davidson:

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Quote from @Mohammed Rahman:

Hey @Eric Terwilliger - firstly, congratulations man! You've done what most people only tell themselves they *will* do. You've actually put your money where your mouth is and took the risk to put yourself out there.

In my personal opinion, and you'd probably agree with this, you could have done a better job on your first deal. But that's with anything, the first few times are going to be bad - that's how you get better :)

I was curious, why did it take so long to find a tenant? Is the property in a rural area? Asking because that seems like a bit of a question mark if you let the PM company handle the rental and they took almost 6 months to fill it.

It was a combination of things... 1) I did the rehab my self so it took about two months to complete where it probably would have took a professional two weeks. 2) I priced high at the beginning and didn't use a property manger to discuss what I should price at. 3) By the time I completed rehab it was November in the Midwest so it was getting cold and people weren't as active in looking for a place.

Knowing what I know now, finding a deal that is good enough to afford professional work that is done quickly will be factored into my thinking.

1 Vote

It wasn't an earth shattering success, but I'm learning along the way.

PP: $210,000

Down Payment: 20%

Closing Cost: $9,500

Rehab: $5,000

PITI: $1425

Rented: $1250 per month

Property Management: $83 per month

Took 5 months to find a tenant so holding costs were rough.

With appreciation and rent increases, in 10 years i'd see a 7% return if I sold.

Other than finding a better deal initially, I feel like I've learned what it actually takes to try real estate investment.

Thoughts?

0 Votes

All Forum Posts by: Eric Terwilliger

Eric Terwilliger has started 1 posts and replied 5 times.

Post: My first deal

Post: My first deal

Post: My first deal

Post: My first deal

Post: My first deal