First Rental Property

6 Replies

My wife and I have been living in our first property for about a year now. We recently purchased a second property with plans to move out and rent out the condo. This is our first step to building our rental property portfolio. Any and all advice is appreciated!

If anyone lives in the Louisville, KY area and would like to meet up I would also appreciate that.

Thank you,

Spencer Paul

First off, congratulations on taking the first step into getting your first rental property! Not alot of people see that as an accomplishment but most never take that step, so I applause you guys :) My biggest advice is to always live below your means and save as much money as you can for your next investment property. Live in the property for 2 years (to avoid paying capital gains, if for some reason you have to sell the home within 5 years of owning it) then use the money you have saved to buy your next property and go live in that new property, rinse and repeat. I would try to avoid doing a HELOC and over leveraging yourself. I have always been the slow and steady type of investor and it has worked out well for me. I hope this helps you a little bit on your journey! Good luck :)

I would run the numbers and make sure the condo makes sense as a rental.  Often condo fees limit returns.  Also check the condo rules regarding rentals.  Any thing related to noise, parking, etc in the condo docs should be given to tenants and make sure they sign off saying they've read them and will follow the rules.  Melissa also gave a lot of good advice.

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Happy to jump on call to discuss your goals. Might be better to sell and roll it into something without HOA fees.

Originally posted by @Spencer Paul :

My wife and I have been living in our first property for about a year now. We recently purchased a second property with plans to move out and rent out the condo. This is our first step to building our rental property portfolio. Any and all advice is appreciated!

If anyone lives in the Louisville, KY area and would like to meet up I would also appreciate that.

Thank you,

Spencer Paul

Specializing in real estate for many years I can tell you what people I've been in contact with have done to set themselves up for retirement. There are two types of investors:

1. Buy or inherit and hold for a long time, then cash out and redeploy equity into potentially higher cash flowing properties or other investments.

2. Buy or inherit and hold all their lives while working the properties for income.

I've seen teachers, firemen, software engineers and all sorts of people utilize both strategies successfully. One way or another, however, the investors must work to pay down loans, increase rents and decrease expenses wherever possible. One way or another, they are building their net worth.

Building net worth is how you may possibly retire with fewer worries. If your retirement utterly depends on having adequate cash flow from your properties, any downturns will cripple you. AND you must maintain adequate reserves to take care of the disasters that may happen.

So my advice- build your equity.