Hi everyone,
I'm just starting to take real estate investing more serious. I wanted to share about my first rental property that I closed on last September 2015.
I was VERY scared if losing money but I was more scared of not taking action.......
Working with "estimate" numbers for the first time can be so nerve wrecking and can most certainly cause analysis paralysis but here's what I did..
First, I got a qualification for an FHA loan.
Got approved for $220,000 so only then did I start narrowing down which neighborhoods I could get into.
Since the inventory was extremely and IS still low and prices high I had to go to a D neighborhood.
This made me very scared, especially because where I could actually afford and where there were Multi families available were at least an hour away....but again.....more scared of not taking action....
I found a 3 family and waited to hear from loan officer how much my monthly payments would be.
Once I found that out, I went on to rentometer.com to see how much market rents go in that area.
I then tried to come up with all other expenses which were
Water-
Public Utility (Hallway lights)
Future Expenses
I put all those together and seemed like the numbers worked so I went for it and CLOSED. Here's what the actual numbers look like now:
1st Unit 2bd 1 ba: $900
2nd Unit 2bd 1 ba: $900
3rd Unit 2bd 1 bath 1 inlaw: $1400
$3,200
My mortgage is $1365
Water is $350-$400
Public Utility:$30-$50
Future Expenses: $640
I end up cash flowing around $745 each month and am so happy I took action!
This is a little motivation for anyone who is suffering from what I did in the beginning. If the numbers seem to work, CLOSE!
Any questions feel free to reach out :))
Stephani Dias
