Hey BP community!
After 4 years of talk, I finally closed on my first out-of-state rental property: a 2-story side-by-side unit duplex, in Davenport, Iowa (on the east side of the city). I have a PM that I am (working on) transferring over to me, that the previous owner was using (they're just ok right now, but there is not may others in the area that are free to take on my units). One side is vacant, and one side has a long term section-8 tenant in place. Minor repairs are needed on the property (<$7,000).
What are "the most important next steps" to do after closing on a property like this? I'm starting to get the overwhelming sensation of getting lost in my list of what to do– not to mention the new possibility of liability/ maintenance worries. How do I get this property under control, self sustaining, and running smooth so I can start hunting for the next deal?
My thoughts: I need to get the PM under contract with me, to legally have the property managed, rehab the vacant side, complete needed property repairs from the inspection, and then rent out the vacant side. I like the numbers, but also considering if it would be a better idea to rehab, rent, 1031 into a better area– but the cashflow is so nice?
Numbers/ data:
- • Purchased for $99,000 Appraised for: $106,000. • 25% down at 3.875% (30 fixed)
- • ~$7,000 in needed repairs + ~$13,000 in a unit remodel
- • ~C/C- neighborhood (I may have jumped in without considering the quality of the growing city/ market/ neighborhood, in Davenport)
- • COC return: 17.7% NOI: 27.3%
