Ok. I finally bought my first property. Whooo hoo! As some of you know, I am a very busy with my business and I have a lot more cash than I do time…but I finally bought my first SFH.
There are so many bargains out there - I am forced to jump on some great opportunities. And I didn’t have to work that hard to get this deal. Here is a breakdown of what I did
I paid all cash / no financing.
I bought it at 49% of ARV (based on comps)
After rehab, my total basis in the property will be at 66% of ARV. I budgeted my expenses on the high end to allow for contingencies, so I could wind up spending less on repairs.
After all is said & done, I will get 3% of my basis back per month (36% per year) in rent before property taxes, maintenance, vacancy, etc. That should make Propertymanager smile.
Thanks - and there are lots of similar deals like that around here now. Based on how this experience goes, I’m going to buy a bunch more of these little cash cows. I’ll pay cash only, and still get yields most people playing the stock market only dreamed of. Thanks again for writing that book Mike…that was really handy.
That is great - congrats to you. I am also considering buying my next rental in Dallas/Ft. Worth area and still investigating best neighborhoods/cities in the area. Got any advice on which towns or neighborhoods you think are best value for a basic 3/2 sfh rental around $100k and no more than 10 years old?
