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.

Comments(6)

  • Tedjr8th January, 2004

    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

  • pejames8th January, 2004

    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

  • tclifford108th January, 2004

    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

  • spurge0n8th January, 2004

    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?

  • gamado8th January, 2004

    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?

  • rickomarsh8th January, 2004

    Again I ask, where are you when I am selling? [ Edited by rickomarsh on Date 01/08/2004 ]

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