It's been a crazy year so far. My wife and I purchased our first intentional rental property (we had rented out a previous personal residence that we've since sold), we are trying to keep up with our 3 year old and expecting our second kid next week. We will be a little bit 'out of the game' since my wife will be taking 6 months off for maternity leave. I figured sharing our story may be motivation for some folks as well as keeping me thinking about it until we are ready to buy house # 2.
The House: REO purchased, 3 bedroom, 1 1/2 bath ranch
Major Renovations: We gutted and reconfigured the kitchen to be usable. The bathroom got a new toilet, vanity and flooring. All the hardwood floors were refinished. All wood paneling was replaced with drywall or painted concrete and a fourth bedroom was added in the basement.
Purchase Price - $51,000 financed with 25% down
Rehab Costs - $16,000 ($4,000 over projected budget) Unexpected electrical work made up a big chunk of the overage, we found open wires behind wood paneling and in the attic.
Monthly Expenses - $427 (principle, interest, taxes & insurance)
Monthly Rental Income - $940
Since we purchased the home two homes in the neighborhood have sold for $90k and $93k. They were the same floor plan but with only 3 bedrooms. I am hoping to be able to leverage equity in the home to aid with the purchase/renovation of our second home early 2016.
@Brian Croll Congratulations. It all sounds great. The cash is one thing, but the knowledge gained in this experience will surpass the dollars. Always glad to hear stories like this. Start planning the next one!!
[email protected] | NJ Agent # 0565737 - NRS REFERRAL SERVICES, LLC
I can't wait to see what happens with your second home (:
This truly is an inspirational story for new investors like myself.
outstanding, the work looks great. Thanks for providing before and after pictures.
Looking forward to hearing about your future deals.
Early congrats on the new addition, I mean baby, not the next deal. Lol But early congrats on that to.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!