All Forum Posts by: John Bell

I have my first rei property under contract and we are scheduled to close this Thursday. The price agreed was $47,000 plus the seller putting $2,000 towards closing. Today the title company sent the seller and me the HUD statement and the seller is claiming she never agreed to $2,000 towards closing. The contract says $2,000 towards closing in section 12 and the sellers signed it. Should I confront the seller? wait? or call a lawyer? I have the text messages where she agreed as well.

@David Mathews Thanks! and thanks for the advice. I never considered furnished or including bills. I checked Facebook market place and found some great deals. I think for now I"m gonna rent it as is and try to gather information about the area and the local rental market. I can always make changes later. Best to get the rent coming in asap first. 

@Sonya Blake Thank you! Good luck! 

@Casey Conner Thank you! I think it's a perfect starter home.

@Sergiu Micula Thank you! Honestly I gave up years ago on ever having kids so it's a huge surprise. 

@Ned Carey Thanks for your advise. I will do just that. rent it out as is and start gathering information. I plan to stay in the same area so I want to know this area inside and out. 

@Account Closed Haha that's a good point. The problem is the area is kinda rural and rentometer lacks enough info to give any rental comp. I can look for ads and make phone calls and maybe get an idea. 

@Sarah Brown Thanks. Covered parking is a good idea since it doesn't have a garage. I'm thinking a fence because I saw two of the neighbors dogs playing in the back yard. I personally would like the privacy but it will be around $3,500 for the fence.

@Account Closed Thanks. The utilities will be paid by the tenant. I didn't notice the lights missing above the mirror. I'll find a cost effective fixture for it. That's why I asked because if left to my own devices I think I would spend too much money and not get much return for it. I have to remind myself I'm not living in it. 

I'm so excited to have my first deal under contract. It's a small 1 bedroom 635 sqft sfh on .25 acre lot and is rent ready but it's a start. I found this deal thru my mentor who found it driving for dollars. The contract price is $47k with the seller putting $2k in closing. I had a realtor pull the comps and they came back $67K. I already have a renter scheduled to look at the property this Tues. and I plan to use Cozy to keep track of everything. 

Renting for $750/mo. Total expenses (Cap. Exp. 8%, vacancy 5% , repairs 5%, PITI ($355) are $490. BP calculator puts my ROI around 30%.

So far the hardest part was finding a 30 year mortgage for less than $50k. I was turned down around 20 times. Another lesson learned is landlord insurance is higher than regular home insurance. Fortunately I got a quote for my primary home and was able to save $83.33 per month on my home insurance. So the savings covers the landlord insurance ($68)

I'm trying to think of ways to increase the value of the property and the rent. None of the back yards are fenced on this street. I wonder if adding a fence would increase the value or rent? Any suggestions are greatly appreciated. No HOA.

In the same week I found out my wife is pregnant (after 10 years of trying). So it's been a crazy week and my motivation to make real estate work has exploded. I'm so thankful for the knowledge that BP has to offer and for my mentors help. He really helped me get over the mental hurdle of buying the first one. 

@Benjamin Vigil 

Welcome to BP.

Try meetup.com and search Facebook groups. You can also try richclub.org or Real Estate Titans of Houston. I plan to attend some events in the near future. 

For me it's freedom. I took over a business from another chemist who worked hard his whole life and retired at 65. Three weeks after retirement he died. I don't want to work in a dangerous environment until my last days. No one looks back on their life and says "I wish I would have worked more". I wanna be free to travel and spend time with my wife. Oh and retire in Costa Rica, Pura Vida!

@Dmitriy Fomichenko

Thanks for your input. You make a good point. 

@Brian Eastman

Thank you for the quick response. I'm budgeting for property management. I'm just trying to save a dollar but sounds like it's not worth saving.  

Could I manage a property that my SDIRA, LLC owns? Of course I can't pay myself but could I do it for free to increase cash flow?

John Bell