1st SHF Rental up and running, now what?
I've landed my first tenant, moving in at the end of the month. I thought I'd kick out the details to everyone and get some opinions on an intelligent way and when to start expanding.
Bought a single family HUD home in mid Feb for $72,000 which includes closing costs. Market value in the sub division suggests a reasonable expectation of $115k - $120k ARV.
What I have in it:
$14,400 in down payment
$4500 in rennovation, advertising, and referral fees
$1365 in mortgage costs - PITI (3 mo @ $455)
$490 in 3 months of utilities
Total expenses = roughly $20,700.
Income: The lease signed at $1025; giving a positive cash flow of $570 per month ($1025 - PITI)
Given this, it will take me a minimum of 3 yrs to break even on this puppy...all said and done, I'm pretty happy about the investment at this point.
Here's where I need some advice-- What's my next move to get the next property? I'm tapped out as far as using my own money to buy the next and leveraging the first home is the only option.
Line of credit on the home, refinance (what are the rules for waiting to refi?), sit tight and let the rental generate enough income for the next purchase?