Fully Rented My First Multi-Family
I was so happy yesterday about something nice that happened I just want to share my good news.
I bought my first investment property last December and then spent the next months fixing it up. I had to change contractors in the middle after the first one marked up prices of things from Home Depot -- as if I couldn't check. But he also had a self-esteem problem and kept needing positive feedback and I got sick of it.
Last December, after I was under contract and days before closing I spoke to the realtor agent who helped me buy the house. I asked what she thought I could rent each floor for. She said $700, or $750. That stunned me. I asked if this was in current condition or with all new windows, new floors, new lights, new counters, etc. She said it was after repairs. I was floored and I told her so -- but I didn't say I never would have bought this house if that was true because I didn't believe her. (FYI, this 3 family house was always owned and lived in by generations of one family so there was no history to check.)
Here's how it played out. I decided to use the first floor for myself -- the whole reason I bought property in Worcester was I could not find rental property for my own use with two dogs. I do advocacy work here and wanted a place to stay, so I took the first floor.
On the second floor I rented out two bedrooms separately, with the tenants meeting and approving of each other. A couple is in the larger room paying $700 including utilities and a single woman is in the other room paying $550 plus half utilities which are in her name. (I pay her the other half out of the couple's rent.) I'll take in about $1,175 a month after paying half of the utilities.
On the third floor I also rented out two bedrooms separately with the tenants meeting and approving of each other. There is a middle aged single man in each room. One pays $625 plus half utilities and other pays $550 plus half utilities, which are in one man's name. That's $1,175 a month.
They all signed leases, the last one this week. All have paid their rent. I think RE investing suits me just fine. Just wanted to share it.