My second investment property.
Hey guy, as you may know in the past I purchased my first investment property for $32,700. This property is now renting at $750.00 and after expenses, including taxes and a portion for big ticket items, I walk away with $550. My second investment is in contract and about to close in a month. It is a very nice brick home. Infact, both of these properties are brick single families. For the second investment, the seller wanted $30,000, we offered $19000 and they countered offer at $27000. I countered offer again at $21000, they countered at $25,000, I countered at $22000. They didn't change their offer. So I hold out knowing that no one will buy the house because not too many retailers will pay cash as i am doing and more so, investors would not buy it at that price. They will want it cheaper but my reasoning is this: in there years from now, you will never again get that house at that same price. At this point, the house is at a good location and ready for rental. The owers are company affiliated with Pennsylvania State and they take care of people who cant take care of themselves so the state make sure the house is up-to-date. This is a steal. I will never sell these two houses. The second house is ready for rental but need some cleaning up. I will get $725.00 in rent and expenses $221.00 with a profit of $504.00. My object is to appreciate the second property, doing the floors, carpets, and most of the work myself. When i am finish, I will take a mortgage for the 3rd property which i have my eyes on. I will used the 2nd property as collateral for 20% of the down payment. My aim is to all-time have a positive equities in my small portfolio. Also, just to tell you guys, i am learning to install hard wood floors and carpets and sheet rocks and other skills that will appreciate house value. I dont have the money for these services so i have to know it as a starter. So that was my little successes.