Updated over 6 years ago on . Most recent reply
My first rental investment deal
Ok so here’s my very first rental property deal.
Purchase price $51,000
Single family home
3 bedroom 1 bath 1120 sq ft
$15,000 down payment I used with a Home Equity loan from my primary residence.
20 year mortgage loan for $36,000 at 5.5%. Payment of $247.64/month.
15 year home equity loan for $20,000 at 4.99% payment of $158.06.
Total monthly cost of $405.70
Rent at $900/month
Net profit of $494.30/month
Plan is to use all profit to pay off home equity loan as quick as possible to use for next property.
I also have a cash reserve account for any and all other expenses.
Also paid property taxes and insurance upfront.