My first sale

EdRenkema

EdRenkema

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So I sold my first property.
This was a student rental that I purchased just after joining REIN in November 2007.
I paid $178K and at the time it was rented to 5 students for $1950 per month.
It fit the system so I bought it, sounds simple but it wasn`t, huge learning curve, but great cashflow to cushion the errors that occurred.
Today it rents for $2035 monthly and is surprisingly clean and well maintained for a student rental.
I learned to include an amendment to the lease that each tenant signed agreeing to keep common areas clean and free of clutter, that plus hired a cleaning contractor to clean all common areas monthly.
The result was a very nice showing student rental with excellent cash flow.
36 hours after listing we had 8 offers, most over asking price.
Closed today for $228K, with mortgage paydown and monthly cashflow a very nice profit and all this 100% financed.
I`d like to say it was my uncanny ability to source out a winning deal but nope, just followed the system.
That and some very reliable and professional realtors who supported me from start to finish.

Thanks Eric Klimstra and Mike Milovick!
 
T

tonypeters

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Congratulations Ed!




QUOTE (EdRenkema @ Jan 14 2010, 08:52 PM)
So I sold my first property.

This was a student rental that I purchased just after joining REIN in November 2007.

I paid $178K and at the time it was rented to 5 students for $1950 per month.

It fit the system so I bought it, sounds simple but it wasn't, huge learning curve, but great cashflow to cushion the errors that occurred.

Today it rents for $2035 monthly and is surprisingly clean and well maintained for a student rental.

I learned to include an amendment to the lease that each tenant signed agreeing to keep common areas clean and free of clutter, that plus hired a cleaning contractor to clean all common areas monthly.

The result was a very nice showing student rental with excellent cash flow.

36 hours after listing we had 8 offers, most over asking price.

Closed today for $228K, with mortgage paydown and monthly cashflow a very nice profit and all this 100% financed.

I'd like to say it was my uncanny ability to source out a winning deal but nope, just followed the system.

That and some very reliable and professional realtors who supported me from start to finish.



Thanks Eric Klimstra and Mike Milovick!
 
M

Mitch Collins

Inspired Forum Member
REIN Member
Congratulations Ed!

It`s nice to actually cash in a property and get the `cheque` isn`t it?

Good for you!
 
EdRenkema

EdRenkema

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QUOTE (MitchCollins @ Jan 19 2010, 11:35 AM)
It's nice to actually cash in a property and get the 'cheque' isn't i




Thank you...



Yes it's nice
<
 
EdRenkema

EdRenkema

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QUOTE (OntarioInvestor @ Feb 21 2010, 03:20 PM)
Ed,



Just curious. What made you want to sell if you were getting great cash flow on the property?




This was the furthest property away from my home base and the greatest PITA, that plus saw a window of opportunity when other property in the same complex went multiple offer - result was better than expected. I needed some capital input and this worked well for just that.
 
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