A little over 20% ROI, 2nd rental
Hey everyone,
Just wanted to share my 2nd rental property purchase. I live in Omaha NE and found a one bedroom house. I spent just under $18,000 ($11,000 closing costs and down payment, and another $7,000 for appliances, bathroom and electrical ) making $387 a month after all expenses besides maintenance.
Mortgage is $338 and it just rented for $725. After using a vacancy/maintenance factor of 15% a year that's still $3950 a year. Purchased this home for $49,990.
One issue that had to be changed however was the bathroom. There was no plumbing for a shower head and adding one was a must. There was also a large window right above the bathtub that would have caused mold to grow if water got inside. So I decided to gut the bathroom and update it. I replaced the window with glass block and converted the bathtub to a shower.
Before:
After:
Here is the tiny kitchen
Living room
This is using a 30 year mortgage, so equity build up is not very much. However I plan to refinance in a couple years to 15 or 10. For now I can keep the cash flow and reinvest it somewhere else. This isn't a home run like others posts I see on here but I hope to continue growing my rentals!