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My First Deal - $32,000 in Equity

by Jeffrey Ledford, CT   

I've been following this website for about six months now, and you're to be congratulated. This is a great site and service. Thank you. I finally got the nerve to do my first deal, which I think went very well.

I searched high and low for months and made a few offers that didn't pan out. Finally, with the help of a really great Realtor, I stumbled onto a terrific two-family. The asking price was $90,000. I felt funny offering $70,000 and a 15-day close. (The seller had problems and had to bail out.) But I nearly fell out of my chair when they accepted without so much as a counter offer!

Then problems arose. After accepting my offer and my deposit of $500, they decided not to sell! After two months of me hanging in there, trying to be patient, the deal finally went through. To boot, I was further compensated an additional $5,000 for the delay!

The Bottom Line: I got the two-family for $65,000. It appraised for $98,000, so I have $32,000 equity. My mortgage, taxes, and insurance are $740/month. The rental income on the upstairs unit is $650. So I pay $90 a month to live in a 1270 square-foot, three bedroom apartment with a laundry room, a rec room, and a dinning room. It's great for me because I moved out of a small one bedroom apartment I was renting.

 
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