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NOTABLE! I bought my first rental property. Here’s how I did it and what I learned.

Angal Faria

New Contributor
May 1, 2019
11
5
14
Dubai
Step 3: Contacted Owners

The auditor site included the owner name and mailing address for each building. We literally sat down and searched google trying to find a phone number connected to those names/addresses. If we found one, we added it to the list until we had done a search for each one.

Once we had the numbers, we picked up the phone and called each one. We would alternate who called each time.

Here are the responses we would get:
1. Number was invalid
2. No answer. In this case we left a message. Name, number, asked them to call if they were interested in selling
3. Someone would answer. We would say hello, tell them we are investors looking at Pleasant Ridge, and ask them if they would consider selling their building. Their responses were:
a. “Why are you calling me??!!”
b. “Thanks, but we’re not interested”
c. “Let me take your number, I’ll get back to you”

A couple of months later I got a voicemail from an owner interested in selling.
I am here now.....the owner is interested in selling and conversation going on to the deals of money.
 

Phil K

New Contributor
Dec 29, 2016
14
9
15
Massachusetts
Congrats on your first purchase! I'm just curious how your cash flow only $800 (no disrespect - honest question)?

With a $120k mortgage ($160k purchase price and $40k down) and a 30 year fixed at 5%, your mortgage payment can't be higher than $650/month. I'm assuming Cincinnati taxes aren't super high, either... And your rental income is huge compared to the purchase price (at least from my perspective as an investor in the Boston area).

What are your big ticket expenses that are eating away at that rental income besides maybe taxes, water, and insurance?
 

Jaden Jones

Igloo Builder
FASTLANE INSIDER
Speedway Pass
Aug 22, 2018
230
275
171
Canada
Congrats on your first purchase! I'm just curious how your cash flow only $800 (no disrespect - honest question)?

With a $120k mortgage ($160k purchase price and $40k down) and a 30 year fixed at 5%, your mortgage payment can't be higher than $650/month. I'm assuming Cincinnati taxes aren't super high, either... And your rental income is huge compared to the purchase price (at least from my perspective as an investor in the Boston area).

What are your big ticket expenses that are eating away at that rental income besides maybe taxes, water, and insurance?

Im also curious about this, your mortgage payment seems really high. Do you have a breakdown on this?

Also as I side note, prices down there are amazing. A barely livable fourplex here is 600k, most start at 800k. Might actually look into selling my rentals here and buying down there....
 

Phil K

New Contributor
Dec 29, 2016
14
9
15
Massachusetts
Also as I side note, prices down there are amazing. A barely livable fourplex here is 600k, most start at 800k. Might actually look into selling my rentals here and buying down there....
What area are you from? I would love to see anything with 4 units within around the Boston area fall below $1m - even if it was completely hollowed out to the studs. Problem is, it seems like anywhere beyond 20 miles outside the city isn't desirable for tenant base...

When I see numbers like OP's, it makes me really think about buying out of state. My concern is knowing nothing about the area and knowing how certain "pockets" of geography, even in a good overall area, can hide some big issues...
 

Jaden Jones

Igloo Builder
FASTLANE INSIDER
Speedway Pass
Aug 22, 2018
230
275
171
Canada
What area are you from? I would love to see anything with 4 units within around the Boston area fall below $1m - even if it was completely hollowed out to the studs. Problem is, it seems like anywhere beyond 20 miles outside the city isn't desirable for tenant base...

When I see numbers like OP's, it makes me really think about buying out of state. My concern is knowing nothing about the area and knowing how certain "pockets" of geography, even in a good overall area, can hide some big issues...
Im in Calgary, Canada. There is a big problem here with overpriced housing right now in all the major cities. Average single family home here is 450k. There is literally nothing for under 300k. It gets worse moving west. Houses in Vancouver are over a mil.
 

ZeroTo100

Silver Contributor
Speedway Pass
Feb 2, 2016
331
553
255
New York City / New Jersey
It always amazes me how much cheaper these types of units are outside of NY and NJ.

Forget cash flow, you’re lucky if you get close to breaking even over here (unless you’re buying cash).

I always wonder how hard it would be to manage property long distances (not vacation style rentals).

Very tempting to hop on a flight west and shop around lol.
 

Jaden Jones

Igloo Builder
FASTLANE INSIDER
Speedway Pass
Aug 22, 2018
230
275
171
Canada
It always amazes me how much cheaper these types of units are outside of NY and NJ.

Forget cash flow, you’re lucky if you get close to breaking even over here (unless you’re buying cash).

I always wonder how hard it would be to manage property long distances (not vacation style rentals).

Very tempting to hop on a flight west and shop around lol.
People do it all the time, fly out, buy it, hire a property management company to take care of it. Fly home.
 

Phil K

New Contributor
Dec 29, 2016
14
9
15
Massachusetts
People do it all the time, fly out, buy it, hire a property management company to take care of it. Fly home.
I've considered doing the same thing - the issue is, knowing that there are "pockets" of any general area can be vastly different than the norm, it's hard to really gain quality knowledge, or "get a good feel" for an area for making a determination of whether it's a good investment.

I wonder what areas are seeing good returns nationally for say, 4-10 unit buildings... Suggestions welcome, and I'd be happy to share information about the Boston area in return!
 

Angal Faria

New Contributor
May 1, 2019
11
5
14
Dubai
I am now in step six. I offered the owner $156k and the owner asking for $165k. There is no more difference between price, and I confirm that the deal settled down within a week.
Here have a pic of the house bellow.
villas1.jpeg
 

fishgodeep

Contributor
Read Millionaire Fastlane
Oct 11, 2015
35
58
112
Edmonton
Great post @Petros. I've been thinking of purchasing a multi unit complex for renting and you've shared a lot of valuable infornation here. Especially about contacting the owners directly, you never know what someone's position is until you ask them.

Keep us posted on your progress
 

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