Major work completed:
Everything, built this house from the ground-up.
Financial Information:
Estimated monthly cash-flow: $240.43
Disclaimer: I am not a financial planner, advisor, or accountant. The financial actions mentioned were only suited for my own risk tolerance, strategy, and ideas. Copying another's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.
To protect the tenants and their identities, this is only a visual representation of the rental property, not the actual home itself.
I take it you now own two rental properties?
ReplyDeleteNICE!
2 country homes and 1 Victorian house downtown. Until debt levels drop to 0% this will be the final addition to the real estate portfolio.
DeleteI've been trying to get financing for an investment property but everyone is wanting 20% down and 6 months of rent in savings
DeleteYes its been really tough to deal with the lending companies since 2008. My cap for an investment home is $60,000. Even with a low purchase price you would need 12,000-15,000 as a down-payment.... I got in my first house for under 500 dollars. Which was basically nothing down and most fees rolled into the loan balance. Impossible to replicate right now.
DeleteI'm following your blog. I, like yourself, have rental properties in addition to a DG portfolio. I've got two rentals and probably won't get another rental until I can add a substantial amount to my DG porfolio. One of the rentals was an FHA loan so I think it was only 2.75% down but I'm not making any money off of it yet. The other one I had to refinance and put 20% down. Here in Austin, TX, if you don't put down at least 20% it's very difficult to achieve positive cash flow.
ReplyDeleteWhat sort of strategies do you use when selecting location/property?. Did you get a construction loan for your latest rental? You said that you built it from the ground up. How are you managing to get a brand new 3-2 house for under 60k or did you mean 60k down payment? I'm curious to know what is working for you.
Austinbroker thanks for stopping by, I like your blog btw. Like dividend stocks, the entry-price is whats important. Try to find the good deals and go from there. Lower entry price gives you a shot at a greater yield (cashflow) like stocks.
ReplyDeleteThat third property was built by me and my father with a construction loan. I drew up a business plan and convinced a local banker that we were guaranteed instant equity every step of the way. We hired 2 helpers for the concrete labor, but other than that we did everything. It took 8 months to complete and I actually lived in the home for 3 years. Total cost was under 60. Which was strictly land and materials.
In austin my strategy would be impossible, but out where I live I would never purchase a property above 60k. This would include any closing costs and costs to bring the house up to my rent-able standards.
great blog
ReplyDeleteProperty From India a Best Platform To Grasp Property