Ok, so now I have a New Construction Condo #1 and about $100,000. The area I was living in was too expensive and you could not cashflow without a significant downpayment. So I quit my job and decided to move to a city out west which had a hot real estate market. I packed up my car and headed west on April 20, 2004.
I found a realtor that was recommended by someone on Richdad.com. I met with her and she sent me some listings. I was looking for multi-units only as 4 plexes in this area were going for $200k-$250k.
We came upon a 2-unit listing, but in actuality it was 2 condos being sold together. The asking price was $143,000 for both of them. They were both rented by Section 8 tenants but my realtor said that the area was good and based on the pro-forma numbers in the listing they cashflowed alot.
I put in an offer at $146,500 and waited. Later that night, I found out that someone had offered $10,000 above the list price. Fortunately for me, the offer was weak in earnest money so they accepted mine. So I had my first two rental properties with real tenants. Let’s call these Condo #2 and Condo #3.