I Just Bought My First Investment Property. Any Advice?
I just picked up a great little house for really cheap. It needs some work but nothing overwhelming. The deal closes at the end of this month. The house was for sale by owner and I'm buying it with my investor's cash. I want to return their money and interest as soon as possible. Should I do the repairs and put it right back on the market? Or should I rent it out for awhile? Also should I do the repairs before I refinance? Or should I refinance right away? I'm going through a title company for the paperwork, is there anything I should be on the lookout for or will they pretty much take care of everything? I think I'm having that little bit of apprenhension that comes from your first buy - so any suggestions would be appreciated. Oh yeah, should my investor just write me a check that I cash at the bank and then I write my own personal check with the title company at the time of closing?
>>Should I do the repairs and put it right back on the market?
--You can if you want, keep in mind it may limit some buyers as it will not be seasoned property.
>>Or should I rent it out for awhile?
--Do you know how to be a landlord? If not, research and know what to look out for or don't rent out, I would reccomend Shemin's secrets of a millionaire landlord
>>Also should I do the repairs before I refinance?
--I think this would increase your odds with the majority of lenders
>>I'm going through a title company for the paperwork, is there anything I should be on the lookout for or will they pretty much take care of everything?
--I just like to use title companies that have flexible closing hours as I still have a non real estate fulltime job
>>Oh yeah, should my investor just write me a check that I cash at the bank and then I write my own personal check with the title company at the time of closing?
--You typically will pay with a cashiers check in your name
GL
Ray
Thank you so much for answering all of my questions!!!!
As a Newbie I think your should Wholesale your first few deals.
Good Luck, Herb (WPB,FL)
We don't have enough information to make a good recomendation.
What did you buy the place for?
How much are repairs?
What will the place be worth after repaired?
What will the place rent for after repaired?
What is your arrangement with your partner?
Thanks for asking - I bought the house for $25,000, but it is small. It is a 1 bedroom house, but the lot is large. The repairs should not cost more than $3,000, a small amount of plumbing and electrical which my boyfriend can do and the rest is cosmetic - carpet, paint, and grass seed. I can rent the property for $450 in that neighborhood. According to my market analysis of the area I can sell it for about $50,000. I have my investor's money for the full amount of the purchase price for 6 months. I will then return the princinpal and 10% interest, so $27,250. I do have good enough credit to a 100% Refinance, but I don't know if that is the best route.