All Forum Posts by: Hampus Langendorf

This is my first and so far only deal. I bought it in july 2016 with the intension of using it as a vacationrental, since it is located in the ideal place for that. Im Swedish, and the deal is in swedish currency, I'm doing my best to convert it into dollars. 

The deal:

Purchase price: $136 100 

Down payment: $20 415 (15 %)

Closing costs: $2 300 

Total cashinvestment: $22 715

Monthly costs:

Amortization: $200 

Interest: $190 

Utilities: $220 

Insurance: $32 

Total: $642

I rented it out with Air BnB april - september during 2017 and july-august during 2018. Average monthly income from Air Bnb during these 8 months was $932. The rest of the year my plan was to get a tenant to live there during the 6 months off-season. It was easy to get tenants - hard to get them to stay. The rent was $655/month, including utilities. However but 2 months each year became vacant due to tenants moved out. If we average the income over these 2 years, I basically got $638/month in rent. 

Monthly costs:

Amortization: $200

Interest: $190

Utilities: $220

Insurance: $32

Total costs: $642

Monthly income: $638

Monthly profits: -$4

During the summertimes it felt like I was making mad profits, but as you can see, if you spread it out over the whole year, I actually lost money. I managed the property myself, which ment going over there to clean a couple times a week, screen tenants for the off-season, etc. It was a pain in the ***. 

So this year I decided to change my plan. I switched it to a yearly rental instead, where the tenants pays most of the utilities. The vacancy drops, since I get more quality tenants that really wants to stay there for the long term. 

Monthly costs (yearly rental):

Amortization: $200

Interest: $190

Utilities: $50

Insurance: $32

Total costs: $472

Monthly income: $655

Monthly profits: $183

It turned out that switching to a yearly rental, which drastically decreases my work, actually made it profitable. Now I am enjoying monthly payments (which I reinvest in improving the property), and at the same time getting my mortgage payed off while spending very little time on the property. 

So, this was my little story on my first (but hopefully not last) investmentproperty. I still hold it today, but I am considering maybe selling it to free enough cash to buy 2 rentalproperties instead. But we'll see!

I will keep you posted on what happens :) 

Hello everybody!

My name is Hampus, I am 22 years old and live in Sweden (in a suburb around 30 min north of Gothenburg, if anyone here knows Swedish geographics). 

A little over 3 years ago I bought my first (and so far, only) rental property will still living with my parents. I was initially looking to buy a home for me to live in, but realized quite soon that I would much rather invest my money in something that made me money instead of costing. 

It is located in Orust, a quite popular vacationdestination in the summers. It is a small house around 52 m2 (Screw your imperial system, metric for the win!). It was built as a summervacationhome, but you can live in it during the winter too without any problems. 

My initial plan with this house was to rent it out using Air B'n'b during the late spring and summer, and find someone to rent it for the remaining 8 months of the year. Cashwise this went very well, but after two years I gave up. It was not worth the work - self maging a vacationrental is a lot of work. And while there were a lot (and I mean a lot) of people wanting to rent the house for the 8 months off season, it was impossible to keep them renting for the entire time. Since it was only 8 months, they were actively looking for another place and moved as quick as they found one. So after this years summer I decided to turn it to a ordinary rental. They have lived there for almost 4 months now, so far so good. 

In Sweden you need a 15% down payment to get a loan from the banks. I did some calculations for fun like a month ago, and realized  that this means if the house appreciates 10%, your cashequity increases 66%. If you sell after a 10% appreciation, you then have a downpayment for a 66% more expensive house (quickly calculated, not including salestax or closingcosts). With this in mind I am considering selling this house, free up cash, and then have enough downpayment to buy 2 equal houses. We'll see what happens!

Well, that was a short introduction about me and my investment. My plan is to expand into more rentals, to one day live off of my rentals. 

Feel free to ask if you have any questions.

Thank you, hope to see you in the forums :-)

Best regards, 

Hampus