Buy that rental!

If you are considering a rental property purchase I wanted to give you a little inspiration, for a successful year.

My husband & I decided to buy a rental this year, so we did a cash out refi. We were able to purchase a property in New Hampshire. The seller was underwater & I offered a low cash deal, closing in 3 weeks. He was eager to get out of the property, so took it, at about 5% under market value. I'm a licensed realtor in NJ, so I was able to get through closing quickly. Since we took advantage of our equity & got a 3.5% rate the property is generating $200 of positive cash flow every month, including paying the mortgage for the % of the loan attributable to the property. I had my accountant go over it with me & we will be deducting 100% of the financing costs, so there is a tax saving too.

We got a good renter quickly, but have had a few small repairs. In the long term I am so glad we did this because it adds to and diversifies our investments.

Let me know if you need any specifics or tips - but go for it!