As I briefly mentioned in my About Me page, I had no damn clue what I was doing and getting myself into when I purchased my first real estate investment property in 2012. I was in my 20’s and utterly clueless in anything finance related. Yes, I was ignorant, naive, and clue-less! I am sure many of you can relate . Although… I wasn’t completely naive. I saved some mo-ney! I gotta say that was a little bit of an intelligent thing I did and couldn’t be more proud of myself. As a matter of fact, I purchased my first investment property before I purchased my primary residence. Lo and behold, it was and still outright my best investment property. I can arrogantly say that this property generates some badass ROI for me, >50%! Click here to see my ROI calculations. More interestingly is that my first purchase was a […]

My front view In Part 1, I detailed how clueless I was in real estate investment, but took an opportune risk and purchased a foreclosure as my first investment property that presently generates a ROI of >50%. In this part 2, I will detail: Condition and details of the property Cost of the property / Cost of renovation After the renovation Lease price throughout the years Photos of the property The property was a two-story single-family home built in 1981 about 2641 sq ft, 4 bedrooms all upstairs, 2.5 baths, 1 family room, 1 living room, 1 dining room, and 1 game room upstairs. It was foreclosed due to a divorce and was in the market for a little over two months. The property was…. you guessed it…a f@#*ing disaster. The front yard was grass-less and ground was cracked due to lack of water, trees were […]

ROI -  Return on Investment. ROI calculation: Let’s see what kind of ROI the property generated for me with the cash transaction. Two examples below. Cash Transaction: Year 2012 Cash Transaction: Year 2013 Annual income: $14,400 ($1,200/mo rent) Annual income: $18,000 ($1,500/mo rent) Total investment: $111,159.88 • cost of home - $80,000 • closing cost - $385 • cost of renovation - $26,200 • home owner’s insurance - $789 • property tax - $3,343.88 • pest control - $1,142 ($500 one time setup charge + 107/every 2 mo) • estimated annual repair expense - $1,500 Total investment: $98,959.88 • cost of home – $92,685 (80,000 + 385 + 26,200 + 500) minus $14,400 annual income from year 2010 • home owner’s insurance - $789 • property tax - $3,343.88 • pest control - $642 ($107/every 2 mo) • estimated annual repair expense - $1,500 As you can see, even paying […]