All Forum Posts by: Tim Johnson

The book is simply called The Book on Rental Property Investing by Brandon Turner. Highly recommended, I will continue to reference it in the coming years.

I did it! I set a goal in January to complete my first investment deal by June. I set a few important milestones to hit along the way... read the entire Book on Rental Property Investing to build my confidence... narrowed down my options, made an offer, and then I had the keys on June 30. It's a duplex, I'm living in one side and renting out the other. It's been a lot of work but I am liking it so far! It hasn't burnt down yet and I'm about to receive my second rent check which is just over 2x the P&I on the whole place... for me, that's a success.

Upsides to the deal: Healthy cash return (~15%) based on BP calculator and conservative assumptions, and the actual numbers are delivering well so far. Already cash-flowing - came with a great tenant on the other side. Newer property (2008) with simple construction - should be easier to maintain for a newbie like me. Positive location factors: good side of town, walking distance to healthy and attractive downtown area and employers; at end of a cul-de-sac (no thru traffic), bordered on one side by a wide-open grass lot with large tree, good views from the front porches. Low unemployment in the area and lower than average vacancy rates.

Downsides to the deal: Although it's new, the duplex itself is otherwise not very attractive - looks like a manufactured home, not very high-quality construction. Local middle-class job market is heavily dependent on a few companies.  Negative location factors: despite upside, the neighborhood is still just a C / C+ at best, dragged down by a couple of "D" houses, one of which is right next door (although the owners are just fine). 

I pulled the trigger because in my view the benefits outweighed the negatives and it fit what I needed in terms of house hacking, simplicity, and cash return. I am sure it will cause its share of headaches in the coming years, but I feel it's a good starter property and I will learn important lessons while making good money. I may need to move for work in the near future, but I know that I can still hang onto this property and make money because I built 10% property management into the calculation. I am concerned about how to get a good tenant when the other side moves out... but that's what BP community is for.

Thanks all for reading! Welcome any questions or comments.

Your vacancy seems low -- it calculates to only 18 days of missed rent per year. Are you sure you can keep the place occupied and with tenants who pay their rent, 95% of the time?

Other expenses seem reasonable... but after subtracting all the expenses, you would only cash flow $50 / month or $600 / year. Is that acceptable for you? Personally I would not take the deal with those numbers. It would look better if you could charge $900 / month or more instead of $800/month.

*take all this with a grain of salt, I am a newbie

Welcome to BP! I am just getting started up in NE Oklahoma. Been out to Ponca a couple of times. How is the market out there?

Hi all! Recent OU graduate here working full-time in Bartlesville, OK (population ~30,000). About 40 minutes north of Tulsa, OK. Also interested in Collinsville, Skiatook, and Owasso... hello, keyword alerts!

I am looking to learn from active community members so post here if you want to gain a follower! I also have a couple of questions so feel free to share your thoughts on any of these topics:

1) Are there any real estate clubs in the Bartlesville / Tulsa, OK area?

2) What are some important things to know about the real estate market in this area, or similar type markets? (oil industry exposure... lower property values... smaller town, but commuting distance from bigger city... NE Oklahoma...)

3) Pros / cons of getting a real estate license?

4) Pros / cons of forming a partnership or similar legal entity with one or two partners?

A bit about me: I am interested in building passive income and generational wealth. I have a bit of family exposure to management of rental properties and I am very methodical and goal-oriented, plus I have income available to invest and no student debt; real estate seems like a good path for me to achieve my dreams.

Thanks for reading!