I bought my first rental property in December of 2010. I had wanted to buy a rental for quite some time, but it was not easy finding the right properties or the money. I ended up refinancing my personal residence and using the cash from that for a down payment on the rental. It was not easy deciding on the right time to buy, but the right house came along that fall. Even though my wife was pregnant with our twins, I went for it.
How did I find the house?
The house was for sale on the MLS when I found it. It was a great deal and priced at $97,900. I made an offer the first day it was listed, and told the listing agent to let me know if they got anymore offers. A day later I saw the house was under contract to another buyer! I was not happy, and let the listing agent know it. He said they got a better offer and the seller wanted to accept the other offer. I was super disappointed.
A few weeks later the listing agent called me and said the other contract had fallen apart. The agent asked if I still wanted it at the price I had offered and I said Yes! I ended up getting the house. I thought it would rent for $1,000 a month and it needed only a few thousand in work.
How did I finance the property?
I used a conventional lender to finance the property. I put 25 percent down, but it took almost two months to get the loan. The lender put me through the ringer to get financing. I almost lost the deal because we had to extend twice.
You can read all about the purchase here: https://investfourmore.com/2013/03/22/how-i-bought-my-first-rental-property-price-rents-cash-flow-and-more/
How has the property done?
The investment ended up being a good one! The house is now worth about $285,000 and rents for $1,500 a month. I have had to make very minimal repairs over the years and it has made me a lot of money. I actually paid off the property at one point. https://investfourmore.com/2014/02/07/first-rental-property-paid-three-years-bought/
Then I ended up getting another loan on it to help finance my house flips. I have bought 20 rentals since then and switched to commercial rentals due to the hot residential market. Hopefully I can keep buying rentals and increasing my cash flow.
Wow! I thought you had been an investor a lot longer. I can't even imagine where you'll be in another 7.5 years. You might run out of houses. lol
I have been an agent and flipper since 2001, but this was my first rental.
Oh ok. That makes more sense. lol You've still made pretty awesome progress. It seems like flipping would be more profitable than doing rentals.
In the short term yes, but not the long term
If you want to play safe property in fact is a relatively good idea for investment .It fetches a long term value
Buying a first rental property is a huge step. For those who want to buy a rental property under $50,000 and don't want to go it alone, check out http://www.rentalincomehomes.com
There, fist-time rental income home buyers can find lower-priced homes that have already been rehabbed, already have property managers and renters in place.
Beautiful house sir.. where is this house located @investfourmore
Greeley Colorado
Nice @investfourmore . Ever thought about just selling it outright and making a large sum profit from the Appreciation ??
I could, the problem is finding more properties as rentals. Rentals are so great with tax advantages.
Very good stuff. Nice hearing how it all started. Kids will motivate you to move ahead. :)
Check this out. My boy (3 yrs old) loves looking at the new construction homes behind us. He wanted to do a house review with the class pet (stuffed pig).
https://steemit.com/video/@realestatecoach/future-real-estate-partner
This is finished amazingly and reflecting as an great home and really great in appearance too. And it's unfortunate to hear about the roller-coaster journey in this phase but i hope and wish that you will definitely going to get the success in your field. Thanks for sharing your experience with us and wishing you an great. Stay blessed. 🙂
Thank you, the rollercoasters make life more fun
Welcome and yes you said absolutely right. 🙂
it's good that little by little you are achieving your goals, you are a good investor
Thank you
That's a good detailed post of your achivement and reached your goal.
Thank you
Congratulation , your home is very beautyful , i like it
Your post is always different i follow your blog everytime , your post is so helpful . I always inspire of your post on my steem work . Thank you for sharing @investfourmore
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Your post very helpful. Find out something from your post.
I wish I am renting something
Great article! Looking forward to hearing more from you!
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