We closed on our first investment property about a month ago. Its is a 4 Bedroom/ 2 Bath in a good nieghborhood. We bought it as a 3 bedroom, but decided that one of the extra rooms already had a closet and would work nicely as a 4th bedroom. I feel that it is a marketable neighborhood to rent in, but have found that the majority of people on the street actually own.
While there is a decent amount of work that goes into financing, title work ect. leading up to the closing, I expected the real work to begin once the house was ours. I was ready to hit the ground running. It has really been one thing after another. We had to get electrical work fixed before the city would come out and turn utilities on, had a plumber come check the gas lines, and got what remained out of the abandoned house. One thing I did learn was that people (in our case neighbors) will come look through the junk you set out and and pay you for it. Of course we didn't get top dollar, but nothing was in very good shape and it helped us get rid of stuff so we could get started on the house.
I got with a referred contractor before we closed on the house and he started as soon as the utilities were set up. It has been pretty amazing to watch all the progress. Paint and carpet go along way to giving a house a new look. Not to mention fixing cracks, replacing windows, and a few new doors. We are setup to have the house completed by the end of the month. Once the inside is complete, we are going to start marketing the house for rent. I strongly believe that this is a learning process and we are taking things in stride. My rehab budget has needed to be expanded. I wanted to do much of the work myself, but with a full time job I have found it much more efficient to hire the help. I have been able to see 1st hand the saying that "you make money when you buy" is a very true statement. In my next post, I hope to have good news in regards to a finished rehab and starting the tenant screening.