All Forum Posts by: Scott L.

Ok. Finally took the first leap on REI, been reading and searching and paying attention to everything under the sun. Afraid to be the guy that regrets never making the move later in life.

Found a Mentor, local friend that is a great guy and seasoned investor for decades.  Had similar ideas and structure around his investments...Build equity, save for college education for kids, retirement.

I'm keeping my full time job but saved up about 14-19K right now to make the move. 

Found a Duplex listed at 65,900.  Each unit is a two bedroom with third floor bonus loft/room.  1 bath in each.  One rents for 520 a month, long term tenant for 10-12 yrs, the other slightly updated (paint, carpets, and cabinets) rents for $600, that tenant has only been there little over a year.  (clearly a bit more messy on that side). Taxes are about 2k a year, and this is accurate rent for the area, maybe more around 600 for the what is basically a 3 bedroom. with small back yard.

Did a walkthru with mentor and he thought it was a decent starter rental.  Depending what the inspection says.

I offered 58,900 with 6% seller assist, just to keep more cash on hand, in case i needed it.  The seller accepted.

Had the inspection yesterday evening.  Inspector found issues, main drain to sewage needs redone, roof has a few squares that need fixed or replaced, a bunch of the windows basically suck, some water stains in the basement for what amounts to poor grading, and disconnected gutters, shower that doesn't even work on the side of the 12 yr tenant (who apparently just uses a tub?), some shotty repairs but nothing that looks like its gonna fall down, "he's def seen worse", a lot of typical things for a 80+ yr old house, some water stains here and there, minor plumbing... yadda yadda....

So, what do we think?  I've still got outs based on the inspection, but would love other opinions.  It's in a great location based on me.  Its 10 minutes from my house, its the ugliest house on the street, next door neighbor has same exact duplex redone, new windows and new siding.  Eventually I would get there.  Its not a great area overall, but this is a nice little neighborhood, blocks from a grocery store, clean and safe.

I've basically be listening to every podcast all week, and podcast 61 has me a little gun-shy all of the sudden.  I'm open to advice...

Well.  I did it.  I have been watching and wanting to get involved in real estate investing for 10+ years.  Finally saved up a little and made and offer on an inexpensive little duplex about 10 mins from my house.  Good neighborhood, nice street of updated units, similar construction.

Got it for 14K under initial listing price.  Getting ready for inspection.  It needs some work in leaky basement i'm sure and some little things here and there.  65K with 1120 income in rent. So should provide decent cash after mortgage, tax, insurance, and repair saving/estimates.

I've got no reason to regret the decision.  Just give me some good advice starting out and tell me I am gonna be very glad I finally took the leap.  haha