Author Topic: Closed on my first rental property today!  (Read 1921 times)

Pennycounter

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Closed on my first rental property today!
« on: April 26, 2019, 11:20:35 AM »
I've been looking to diversify my portfolio of post-tax savings and took the plunge with real estate. We closed on a duplex in New Orleans today.  Some details:
- Fully Rented
- Took me about 3 months of looking to get this property under contract. I made offers on several others and 2 others made it through inspections before the deal fell apart :(
- Meets 1% rule but I made my decision based on actual projected costs

I'm doing it as a remote landlord so I have a property manager as well.  I thought about trying to self manage but since we are remote and some of the nuances to New Orleans property management are unknown to us, it feels better this way. Plus the numbers still work, just obviously not quite as much income.

I'm excited but its also a little anticlimactic since I'm not there and not getting the keys.  Now on to see what the reality of landlording is like.

SwordGuy

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Re: Closed on my first rental property today!
« Reply #1 on: April 26, 2019, 02:51:55 PM »
Congrats!   May the numbers you ran be both accurate and profitable!

BicycleB

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Re: Closed on my first rental property today!
« Reply #2 on: April 27, 2019, 03:28:10 PM »
@Pennycounter, congratulations, and thanks for posting. Keep us informed about what happens.

@SwordGuy, thanks for posting my new favorite thing to say to someone. Now I just need to find another case in which to apply it...

Pennycounter

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Re: Closed on my first rental property today!
« Reply #3 on: April 28, 2019, 09:42:56 AM »
I 💯 agree with @SwordGuy and I feel like this will stress test all the planning I did prior to sale.  It's hard to feel covered but not overly conservative!

soccerluvof4

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Re: Closed on my first rental property today!
« Reply #4 on: April 30, 2019, 05:40:16 AM »
Congratulations! Where are you in New Orleans ? In the known flood districts or did you stay away from there?

Enigma

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Re: Closed on my first rental property today!
« Reply #5 on: April 30, 2019, 06:50:34 AM »
I think it is harder to manage rental properties from a remtoe distance.  Best of luck and skills!  Hope it works out flawlessly.

Pennycounter

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Re: Closed on my first rental property today!
« Reply #6 on: April 30, 2019, 10:38:18 AM »
Congratulations! Where are you in New Orleans ? In the known flood districts or did you stay away from there?

If you know NOLA, all of it is in a flood zone technically but its in Flood Zone X. This means its protected by levies and flood insurance is not required for the mortgage.  That said, I did pick up flood insurance and a termite contract. 

It's near Freret in Milan.

I think it is harder to manage rental properties from a remtoe distance.  Best of luck and skills!  Hope it works out flawlessly.

I just hope it works out not awful ;) and that long term I'm happy.  It's only been a week but I feel like the contract and closing was the easy part. Now its getting everything coordinated and yes being long distance, even with a PM, is challenging.  I'm hoping in 1-2 months is on somewhat auto-pilot. 

Fingers crossed!

BicycleB

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Re: Closed on my first rental property today!
« Reply #7 on: May 31, 2019, 11:59:09 AM »
So @Pennycounter, how's it going?

Pennycounter

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Re: Closed on my first rental property today!
« Reply #8 on: June 06, 2019, 01:02:59 PM »
@Bicycle_B It's a good thing I have a day job, LOL. There were some planned repairs that came up during inspections that I had taken care of. It was expected but still $25K spent. 

And one of the tenants gave notice and moved out a few days ago. She'd been there for 5 years so there was lots of wear and tear repair plus a deep clean that is happening this week.  You know all this stuff is going to happen at some point but it feels like A LOT. It's not the money, its the coordination and decisions. Plus since its all new, I am trying to figure out what are musts and what will help it rent/market but not dump too much money in.

Like I said, I'm glad I am looking to take it slow on my real estate empire :)

Plus the tenant was in arrears on her utilities so it required some extra paperwork to transfer them to my name, without settling those bills.  Again, not insurmountable but not easy. 

I'm looking forward to getting it rented and back on easy street...until the other tenant gives notice.