Updated about 5 years ago on . Most recent reply
new to investing, help
Investment Info:
Townhouse buy & hold investment in Dickinson.
Purchase price: $208,000
Cash invested: $8,000
I bought this property with no money down with 4.5 % interest rate. I had my brother move in and a coworker I charged them rent. brother 400 and coworker 475. I've been putting extra money to the principle about 8000 so far since i bought it. I want to learn more about real estate and would like to rent out to a family with in a year.
What made you interested in investing in this type of deal?
well to buy it and pay it off fast and make money off of it by renting.
How did you find this deal and how did you negotiate it?
thru a realtor and this is my first home so didnt really know how i should negotiate this.
How did you finance this deal?
thru a bank
How did you add value to the deal?
i didnt
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
i used a realtor
Most Popular Reply
That is good news that the place could rent out for $1600 when you move out. The bad news is that if your monthly payment is $1400, you are probably not going to cash-flow when you factor in vacancy, repairs, capital expenditures and property management. You are still building wealth since you're paying down the principal each month. And if you are in a good area, you might get some appreciation.
You are also learning to manage tenants with your two roommates. So you are learning a lot, building wealth and you haven't lost any money. So it sounds like a good start to me.
Mike