Author Topic: Bought my first rental property!  (Read 4643 times)

Cwadda

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Bought my first rental property!
« on: August 19, 2016, 08:59:50 AM »
Never thought I'd be a homeowner so soon but I ended up buying a condo for a sweet deal! Closing will be about a month from now. It's 5 miles from a busy college town and after running the numbers, it'll be generating $300/month positive cashflow + I'll be living there for free.

I might make a journal since I'm doing most of the repairs myself.

All of this wouldn't be possible without MMM and these forums. If I can do it then so can you!

CowboyAndIndian

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Re: Bought my first rental property!
« Reply #1 on: August 19, 2016, 10:44:06 AM »
Congratulations!

At 22 years, The mustache is strong in you ....

zephyr911

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Re: Bought my first rental property!
« Reply #2 on: August 19, 2016, 10:49:55 AM »
Never thought I'd be a homeowner so soon but I ended up buying a condo for a sweet deal! Closing will be about a month from now. It's 5 miles from a busy college town and after running the numbers, it'll be generating $300/month positive cashflow + I'll be living there for free.
So, roommate situation?

Cwadda

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Re: Bought my first rental property!
« Reply #3 on: August 19, 2016, 11:25:15 AM »
Never thought I'd be a homeowner so soon but I ended up buying a condo for a sweet deal! Closing will be about a month from now. It's 5 miles from a busy college town and after running the numbers, it'll be generating $300/month positive cashflow + I'll be living there for free.
So, roommate situation?

Yeah, roommate situation. There's a finished basement that I'm turning into a studio apartment where I will live and then the upstairs 2 bedrooms will be rented.

Another Reader

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Re: Bought my first rental property!
« Reply #4 on: August 19, 2016, 11:49:16 AM »
Condos are a lot different than houses.  Did you check with the HOA to see if the basement conversion is permitted under the CC&R's?  Does the City or County (zoning and permitting authority) permit you to build out a basement apartment?  Will there be enough parking to meet the requirements?  Check these issues out now if you have not.  You don't want to buy a property that you cannot afford if you can't do the conversion.

Cwadda

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Re: Bought my first rental property!
« Reply #5 on: August 19, 2016, 12:02:43 PM »
Condos are a lot different than houses.  Did you check with the HOA to see if the basement conversion is permitted under the CC&R's?  Does the City or County (zoning and permitting authority) permit you to build out a basement apartment?  Will there be enough parking to meet the requirements?  Check these issues out now if you have not.  You don't want to buy a property that you cannot afford if you can't do the conversion.

Thank you, these are good questions to ask. I'm getting the bylaws soon and I have 5 days to back out of the deal for any reason.

I guess the way I phrased it is that the basement would be a whole separate apartment. That's not the case. Everything is attached and it'd just be a separate room I'd live in. It's just secluded from the upstairs with its own bathroom so it's practically functioning as its own apartment. In addition, I can still afford the property with 1 roommate. It'd just cost me $300/month to live there and there wouldn't be positive cash flow. 

Does that make sense?

VladTheImpaler

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Re: Bought my first rental property!
« Reply #6 on: August 19, 2016, 08:55:05 PM »
How much is the down payment?

snacky

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Re: Bought my first rental property!
« Reply #7 on: August 19, 2016, 08:56:49 PM »
Me too! House buying twins?
(I bought my first investment property today!!!)

Exflyboy

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Re: Bought my first rental property!
« Reply #8 on: August 19, 2016, 11:05:13 PM »
Just thinking about the HOA and building permit situation.

Assuming the worst case and you can't do a basement conversion, one option might be to do the conversion in such a way that you could easily remove it some years down the road. If your not too concerned and just want a functional bathroom then you don't have to finish it, just be prepared to rip it out when you sell the place.

If say you invested $1000 and you make say $300/month.. well that to me would be worth the risk of being found out.

I also have a visceral hatred of HOA's..:)

Just a thought.

clarkfan1979

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Re: Bought my first rental property!
« Reply #9 on: August 20, 2016, 02:03:00 AM »
It's addicting. Good luck!

gggggg

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Re: Bought my first rental property!
« Reply #10 on: August 20, 2016, 06:28:52 AM »
Just thinking about the HOA and building permit situation.

Assuming the worst case and you can't do a basement conversion, one option might be to do the conversion in such a way that you could easily remove it some years down the road. If your not too concerned and just want a functional bathroom then you don't have to finish it, just be prepared to rip it out when you sell the place.

If say you invested $1000 and you make say $300/month.. well that to me would be worth the risk of being found out.

I also have a visceral hatred of HOA's..:)

Just a thought.

I also absolutely despise HOA's. I bought my condo mainly because there isn't a HOA in this neighborhood. I can do whatever I want to my house, which is pretty freeing. I rented my second bedroom out for years; there's nothing anyone can do about it, which I love.

arebelspy

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Re: Bought my first rental property!
« Reply #11 on: August 21, 2016, 03:46:26 AM »
Congrats!  Good luck on everything going smoothly with the closing.  :)
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Cwadda

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Re: Bought my first rental property!
« Reply #12 on: August 22, 2016, 07:35:07 AM »
How much is the down payment?

The down payment is $16,800.

Me too! House buying twins?
(I bought my first investment property today!!!)
Yayaya congrats!!!

Just thinking about the HOA and building permit situation.

Assuming the worst case and you can't do a basement conversion, one option might be to do the conversion in such a way that you could easily remove it some years down the road. If your not too concerned and just want a functional bathroom then you don't have to finish it, just be prepared to rip it out when you sell the place.

If say you invested $1000 and you make say $300/month.. well that to me would be worth the risk of being found out.

I also have a visceral hatred of HOA's..:)

Just a thought.
Unless the association has bylaws saying someone can't live in the basement and it's up to fire code standards, I'll be living in there. Otherwise it'll be a super cool mancave/bonus room :)
The bathroom is already there, it just needs a little bit of work.

Unstoppable

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Re: Bought my first rental property!
« Reply #13 on: September 20, 2016, 01:32:16 PM »
Congratulations, I started out with the house purchase and roommate situation at 24. The girlfriend (then wife) and I had 9 houses within 8 or so years, with full time jobs.


Cwadda

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Re: Bought my first rental property!
« Reply #14 on: September 20, 2016, 01:44:13 PM »
Congratulations, I started out with the house purchase and roommate situation at 24. The girlfriend (then wife) and I had 9 houses within 8 or so years, with full time jobs.

That's awesome, I'm really interested in building a solid real estate portfolio. Average of 1 house per year is reasonable?

Unstoppable

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Re: Bought my first rental property!
« Reply #15 on: September 20, 2016, 01:59:58 PM »
Quote
That's awesome, I'm really interested in building a solid real estate portfolio. Average of 1 house per year is reasonable?

Absolutely. To be honest, it was actually more like 3 one year, two years of nothing due to life changes or upgrading a property, etc.

We have held as many as 9 at one time, sold four off last year (after rehabbing all four) and are doing a rehab with the proceeds on a A class single family as we speak.

You can accomplish way more than you think, with the proper systems and procedures.