Just got back from closing on my first investment property!
 

Didn't have anyone to talk to about it so I thought I'd share.

I know it is just one property but it feels good.

Here she is:
http://forums.pelicanparts.com/uploa...1236621952.jpg

Nice looking House.

That's fantastic mudman! Now be very selective as to who you rent to so they don't trash the place :) ...seriously!

So that is what you can buy for a $1000 in Detroit.

Ha! tabs this is a far cry from Detroitus, but didn't cost a whole lot more than that. I paid more for the used truck in the driveway than the house...

Thanks for the kind words guys. There isn't a whole lot to do to the house but the goal is to have it be one of the nicer ones in the neighborhood.

Excellent purchase. This should work out well for you. Since it was inexpensive, did you get a loan or buy it outright?

Moses, cash sale. There were 20(?) total docs in the closing package! I'm working with someone elses money for a bit of it, but we have an awesome agreement (my investor just wants to help me out and make better on her cash than what she could do at the bank). I'm working on finding the next one already. Also thinking of selling my pcar so I can work with my own money.

Cool. Glad you finally got started on this adventure. I hope you do well with it.SmileWavy

If I may ask, where is the house located?

Thanks Wayne!

This is in the good part of Pontiac near Sylvan Lake. South of Voorheis and east of Telegraph. A really solid neighborhood with well kept houses, professionals and old people.

Between the proximity to any real road (I75, M59, Telegraph and Dixie are right there), the film studio complex deal and what Harbor Cos. are doing just S of my place on Telegraph I think I hit a home run with this one. I've been studying RE like a fiend and feel confident about this purchase.

Man, that is a great attitude. I do believe selling the pcar is right. Investing in real estate is an excellent path to wealth and security.

If your financier is as good as you state, ride that horse till it don't ride. Anytime you can use another person's money to make YOU money, you're doing well. Focus on finding and closing deals and running a tight ship, and the money will always be there.

I wish you well.

Hey guys, any feelings on whether or not to introduce myself to most of the folks on the street, or is that advertising a house to break into? The street is really safe, but we all know how news travels.

They already know it is empty. Getting to know yur neighbors is always benificial, if they know you they might look out for you.

I agree with Tabs, go for it.

AND congrats MUD on your purchase!
I'm rather fond of RE investments ;)

Congrats! Definitely keep us aprised of your progress- I feel comfortable up until the ownership portion of buying an income house. I'd appreciate the information as you progress here.

Ha! Me too! I've been 'ready' to buy several times but this one really fit all my criteria. And I'm not playing with that much money, and most of it isn't mine! I was ready to go until the last few days before closing. Lets just say I had to check my pants to make sure I really had big enough balls.

I did my due diligence on the whole game, talked with other RE players, landlords, spent lots of time in the schittiest areas I was looking in. I really did know every single listing in several zip codes for a couple of months as I was in the research/discovery phase. I made it my full time job. I'm loving it now and can't wait to have more. Of course I don't have a tenant yet...(this part doesn't really worry me, though)

interesting. I guess I've forgotten about my first buy?

Here's one thing you can always remember about RE. The only risk factor is "TIME", the investment will go up, especially if you maintain and care for the property and guaranteed if you improve the property; however when it will go up is the unknown. So make your financial plans long term and if in the short term you see an opp to make some dough, cash out; but always plan RE long term imo, fwiw, couple a canadian pennies worth of info.

Proud of ya Muddy!

what? Sounds like you are joking?

???

I'm not sure what you mean by that. This is not in Detroit, not really even close, but I paid less than 20K for it.

Looking on Realtor.com or whatever can be misleading. Sure, there are some absolutely beautiful house for dirt cheap, but in Detroit. My friend/agent is always sending me 'package deals'- 10 duplexes for 60K or whatever. the structures are awesome, but in Detroit.

Detroit sucks. Almost without exception everything in city limits is filth. I hate driving through most of it, and hate working in it. the city and surrounding neighborhoods have some beautiful structures, parks, etc, but the people ruin it. I hate the whole thing even more when they cry 'oh help me, my city is in ruins, it isn't safe...' STFU you useless no talent ass clown, YOU are the problem, your kids are the problem. Start holding yourself and your neighbors and police accountable and maybe things will improve.

ARRRRGGGGHHH, sorry for the rant. When traveling or working with people from out of town it makes me throw up a little when they ask where are you from? and I start to say Detroit. I think most from the area know what I mean.

Mudman,

You are doing a good thing for yourself. I have two properties that I bought years ago and they are still making me money. Not a lot, but if you are young you will do fine. I wish I had about $20k to throw around on one of these.

What I meant was I couldn't believe a "house" is only $20k, even less than a pickup truck.

Opportunity + Preparedness = Success!

I love it, brings back good memories; very good ;)
You've likely got lots to learn, but you're on the right track!

NOW, what'ya gonna do with the millions?

Hey Mud,
My humble suggestions for you.

1. Make a cash flow spread sheet and update it EVERY month. In any business 'cash flow' is king and it all starts by actually keeping track of what comes in and goes out. No matter how simple it may appear, DO IT.

2. Learn everything there is to learn about being a landlord. Go to your municipality and ask for info; they'll give you the Landlord/Tenant Act, forms, regulations, etc. Get good at being a landlord, it'll alliviate some headaches down the road for you. Dont rent to losers.

3. Learn the concept of "value adding", keep good maintenance practises, learn how to properly do the maintenance on a home. Fix broken things, clear all trash, dab and caulk where needed. If you're "just" starting, you might want to consider minimizing appliances; if the home has a dishwasher, washer or dryer maybe remove them or make sure the tenant knows that the rent does not include their use, cuz if they breakdown you'll have to fix them or replace them.

I started just this way, many years ago and my wife and I owned over 50 homes and we managed 40 tenants at one time for a few years. It's a great business, there's none like it and very few ever do it. If you're interested in more tips, let me know, I'd be glad to share my experiences with you in an effort to help you out, anytime.

These are exciting times! BAMM, that's hot!

That's fantastic but of course the "X-factor" is the tenant pool. Is there a supply of decent renters when people can buy a house for ten or fifteen grand?? That's the problem in Mpls., (my hometown and where I'd like to invest), the north side is all foreclosures and $5k houses but there are no decent renters for that side of town. None. My life as a landlord would be a never-ending nightmare.

I still seriously want to do it but need to figure our that part.