Hey BP,
After 6 months of getting beaten up by cash paying investors, 2 realtors, and endless hours of research, I was finally able to locate and secure a property which we closed on yesterday. I can't imagine doing this without the information I used on this site and through the podcasts, so I just wanted to pop in and say thank you to all who make this community what it is.
My wife and I will use this property as a primary residence, after we do some minor renovation. Once we are moved in, we will be able to save a lot of money (much cheaper than renting), and within a year or so we will purchase another property and turn this one into a rental. Our plan is to continue this acquisition process a few more times until we can begin buying rental properties outright.
I've learned so much from going through this process, so I just wanted to list a few things that I hope might help other newbies out there who are in the same situation.
- Have a plan. One of the best things I had going for me was the fact that I knew what I wanted from the start. 2/2+, 1000+ sq ft, $120-150k in a good rental market that needed just enough rehab to give me experience, but not break the bank. My property is a 2/2.5, 1250 sq ft, and we got it for $126k. It needs new tile downstairs (father in law had a tile company so he will help), popcorn ceiling removed, and 1 bathroom needs to be updated, but other than that it's in great shape.
- Build your team. I know this is talked about a lot on the forums, but for some reason I kept giving my first realtor another chance, and another chance, even though he was clearly not getting the job done. He was unresponsive, lacked communication skills, and literally cost us a lot of properties. In a hot Jupiter/Palm Beach Gardens market, deals don't sit on the MLS long at all. It took me until my 11th failed bidding war with this guy to realize that he had to go. After that, I found a realtor who had investments, and everything changed in the blink of an eye. It was literally night and day with these two.
I also found a remarkable mortgage broker who helped steer me through the financial side of things, and allowed me to pick his brain throughout the whole process. He is also an active investor, so he understood my plan, and got me a great deal on the financing.
- Don't give up. We were actively submitting offers for 6 months, but my search began even longer before that. It was a long and frustrating search, but I think that the struggle helped solidify my ambition to get into this industry. Now, there's no turning back.
I'm sure I'll become more active on the forums now that I've got some skin in the game, but I just wanted to share my excitement with the community. Thanks for reading!
