New Member - New Investor
Hi All!
I'm new to this board and real estate investing.
I just closed on my first property three days ago!
Here's the breakdown;
Price: $113,000 - I put down 20%.
Property appraised at $115k.
Seller paid $2k in closing plus $4k in repairs.
I went with a 20 year amortization at 5.875%.
Monthly payments are $721 - includes mortgage, insurance, and taxes.
Monthly rent is $1050 (it's a duplex).
I'm managing it myself.
At this rate - the tenants are paying the mortgage and I'm building up about $200/month in equity.
I have about $15k left in the bank for investing purposes.
Any suggestions for now? How can I pull some money out of this property? Most lenders won't go beyond 80% LTV - that would leave me with almost nothing for a couple of years.
I look forward to continued dialog on these boards.
When you pay retail for property it is hard to get your money back. On the next deal buy cheaper and get 100% financing. You too may have asked the seller to finance the 20% or at least some of the purchase price. I do not have any money and still buying property. I had to borrow the earnest and appraisal money from my dad to buy a $30,000 condo. It is valued at $50,000 after $3000 in repairs. Should be able to sell for a quick profit or lease purchase for $$$$ monthly
Good LUCK and Thank You
Hope this helps some
Ted Jr
spurgeon,
I would be looking for investors to offset the out of pocket for myself. As a mater of fact, I have them. Why use your own money, if there is someone who wants to make some extra too? OPM, is the key for me! Good luck
Welcome, I too am new to this site, but have been investing for several years. While some are quick to note that you should try and use other's money and buy wholesale, and they are CORRECT, I want to praise you for having a positive cash flow on your first deal, barring vacancies. Good luck and DO try and buy below market value, it allows for newbee errors.
Tom
Quote:
On 2004-01-08 09:44, pejames wrote:
spurgeon,
I would be looking for investors to offset the out of pocket for myself. As a mater of fact, I have them. <IMG SRC="images/forum/smilies/icon_smile.gif"> Why use your own money, if there is someone who wants to make some extra too? OPM, is the key for me! Good luck
Thanks for your input. What's a good way to find these investors? Classifieds? Chamber of Commerce? REI Groups? This board?
spurgeon, become one of those investors.
Using other people's money is nice, but making more for yourself is better.
Why line someone else's pockets?
Again I ask, where are you when I am selling? [ Edited by rickomarsh on Date 01/08/2004 ]