I am way overdue on posting about my first real estate success in Greenfield Indiana.
I bought my first house, my primary residence, in 2014. I found a great deal on a small house in the country and could not resist. If I hadn't found this, I would have likely bought a duplex and lived in one side for a few years. I've always wanted rental properties. When I was younger, I'd spend a few weeks in the summer with my grandparents in Kentucky. Some of my best memories are of visiting tenants to collect checks and socialize. We even shucked sweet corn for one elderly tenant.
Fast forward to 2015 and I was ready. I found 2 properties in town and went to go look at them one evening. The first property was OK, but the second property was the perfect opportunity to me. It was a foreclosure and had cosmetic damage as a result (bleach on the carpet, holes in the drywall, etc) but was in overall great shape with a huge detached garage. I made a full price offer and was told that offers would not be reviewed for another week (it was the first day on the market and priced well below market value). I got a call from my agent the next day saying they accept another offer. I'm guessing it was a cash offer, and this was my first piece of evidence that not everybody in real estate is honest. I still had my $35k funding letter from the bank so my agent said "Why not make an offer on the other property?" I thought the other property had potential as well, so we offered $35k for the HUD home listed for $42k. They accepted almost immediately.
I planned for a 3 month, $5000 renovation after placing $7000 down (20%). It ended up being 6 months and $6000 but I finally got it done. My wife and I did nearly everything ourselves. The first potential tenant I had said he worked for a renovation company and needed a place for him and his daughter. Said he was a newly single dad. I really liked the guy and went home to do more research. I soon realized that he was being evicted from his current residence and didn't even have custody of his daughter. Other than that his record was spotless. I felt pretty bad because it seemed like he was just going through a rough spot and I really wanted to help him out, but I knew as a first time landlord it just didn't make sense for me to take that risk. I sent him an email and asked him if what I found was true and I never heard back. The second tenant was very interested but I had some technical issues with My Smart Move and by the time I got them resolved she was gone. After a string of bad applicants, I finally found my tenant. She was a single mom with a few kids and I knew she would work out. She was early to the showing, her kids seemed disciplined, and she left small clues that she would take care of the place well. My Smart Move recommended declining her but I accepted anyways.
The day after she moved in, she had a plumbing issue. I had to call a plumber unfortunately, and they ripped me off big time. Live and learn. Later that week she brought up another potential plumbing issue but I was able to go and see for myself. It ended up being a problem with her washing machine, but I was happy to go see the place. It was very short notice, but the carpets looked cleaner than when I put them in. I was very impressed with how she was taking care of the place. Rent is paid on time automatically through Rentalutions and I am actively searching for my next house!
