On November 30th, 2015, we closed on our very first rental property – a 3 bedroom, one bath home in a nearby neighborhood. The pipes we corroded, the kitchen was a disaster, and the hardwood floors all needed refinishing (which I have of course never done in my life).
It was a big project, but we were starry eyed with the investment possibilities. After all, we had the cash for a complete purchase and figured that 100% of the rent checks would go directly in our pockets.
Were we a little naive?
But we all get a little naive with excitement, don’t we?
Related: Our Offer Was Accepted. Let the Rental Games Begin!
We Bought a Rental House With Cash
You may be thinking, “How in the world did you buy this rental house with cash??”
Long story short:
I hate debt. It makes me nervous, angry, . . . → Read More: We Bought a Rental House With Cash – One Year in Review
Do you have a passion for real estate? Have you ever wondered how fast your rental empire could grow? And how quickly you’d become wealthy?
I’ve spent quite a few nights trying to figure out over the years:
When we’ll have enough money to buy the next rental How much we’ll earn from year to year And how much our net worth will grow as I acquire more and more rentals
Pretty much I always ended up with a notebook page filled with scribbles and cross-outs, and a very vague sense of how everything would play out with the rentals 10+ years from today.
Finally, I decided that I’ve had enough with my rough estimations! It was time to figure out all of the details exactly. So you probably know what that means! It was time to build another Excel-based calculator! 🙂
(Interested in all the free tools . . . → Read More: The Rental Property Wealth Calculator: Your Path to Millionaire Status
Liz and I bought a rental house on November 30th, 2015. We fixed it up, had an open house, and landed some awesome renters that moved in on April 15th, 2016. We are now officially landlords (which still seems weird to say).
Related: How to Attract the Best Tenants for a Rental Property
So what’s the point? Why did Liz and I decide to dump $90,000 into a rental property instead of the stock market?
It’s pretty simple actually. We don’t trust the stock market at all.
The market goes up, tumbles down, it comes back again and thrives, and then all the sudden it’s down in the dirt again. Quite frankly, the market seems about as safe as jumping out of a plane with a 50 year old parachute; we might be completely safe and have the time of our lives…or we might die with nothing.
Yes, we still . . . → Read More: Rental House or the Stock Market – Who Won So Far in 2016?
“Going to be a slumlord, huh? Have fun with that!” “My brother tried that for 10 years and lost money every year.” “My uncle owned a multiplex once. All the units got trashed and he constantly had to evict people for not paying.”
For whatever reason, when I started getting excited about buying a rental property (for that oh-so-nice rental income), the above reactions are what I got from my family, friends, and co-workers. Maybe they were just trying to be helpful – trying to protect me from a future disaster – but I think there was more to it than that.
I wanted to do something great – earn a passive income, create options for my future life, and grow my net worth to huge sums! Many people have these dreams. Few people take the first step to achieving them. The “advise” I received was basically their excuse . . . → Read More: Rental Income: A Headache or a Dream Come True?
I’ve wanted to be a landlord since I was 16 years old. I always loved the idea of owning property that would appreciate in value, and I adored the notion of someone else paying off the loans.
“Why wouldn’t everyone want to be a landlord?” – I often thought to myself.
As I grew up, I began to understand both the positives and negatives of becoming a landlord. And now that I am a landlord, I’m beginning to see the pros and cons first hand.
First-Time Landlording – My First Two Weeks
“Going to be a slum-lord huh? Have fun with that when the toilet backs up!” — Clueless Broke-Guy
I thought that I would be the envy of all of my friends. I finally had the ability to buy a rental property and I could conceivably earn money passively from anywhere! I could be taking an all-day . . . → Read More: First-Time Landlording – My First Two Weeks
Liz and I (and my Mom and Dad) have busted our butts over the last few months to transform a foreclosed house into an attractive, livable rental house. Take a look at the results below!
On day one, we pulled up the carpet expecting to see beautiful hardwood floors. What we actually found was an outline of hardwood, with “softwood” in the middle, and a couple of plywood boards that were covering holes in the floor…. Not great.
We hired a floor guy to patch in the holes and then we just sanded and poly’d everything else, hoping it would turn out okay. I think it looks fantastic!
The kitchen was an absolute disaster. It was painted multiple colors, was missing almost all the cupboard doors, and the floor was stacked with different types of laminate flooring and plywood. Not to . . . → Read More: The Rental House is Complete! Before and After…
Sanding floors, applying polyurethane, buying appliances, and installing trim….this has been my life for the past couple weeks! In my last update, I was proudly showing off my nicely sanded floors (that took me two solid weekends to complete!). Thank goodness I can finally move beyond that step. Sanding really sucked, but I have to say that it was still worth it to save $4,000.
Applying the Polyurethane
The next step (since we weren’t staining the floors) was to apply the polyurethane. This really wasn’t overly complicated, but it did take a while since we had 1,200 square feet to go over, and the dry wood made it tough to slide just right.
I took a picture of my poly job in action. As you can tell, we went with an amber tone so that the floor wouldn’t look completely raw after we were done. I really like the . . . → Read More: Rental House Renovation #6: We’re Getting There!
The hardwood floors in this rental house are everywhere: the living room, dining room, hallway, main bedroom, the stairwell, the two upstairs bedrooms, and even the kitchen! Most of these beautiful old floors were hidden under ugly carpet and were just begging to be refinished.
The big question then became….Who was going to refinish them?
Saving $4,000 by Refinishing the Floors Myself
Well based on the title, it’s pretty obvious that I decided to throw away the $4,000 quote that I got from my floor guy and opted to tackle these hardwood floors myself.
The sanding began last weekend. I rented a heavy duty drum sander from my local equipment rental shop and started in the upstairs bedroom (in case I seriously messed them up – at least it wouldn’t be plainly visible to everyone this way). That bedroom had been stained and varnished so many times, . . . → Read More: Saving $4,000 by Refinishing the Rental Floors Myself
Holy paint, Batman! Who would have thought a house could suck up so many cans of this colored liquid? I’ve never done so much painting in my life, and we’re still not done!
(See all of our Rental House projects here)
Rental House Update #4
I initially wanted this project done by Christmas – well that has obviously come and gone. The new, more realistic time-frame is to have everything done by the end of February and to have a renter in the house by the end of March. Before I get too far ahead of myself again though, let’s take a look at everything we’ve done in the last few weeks (since the last update).
1) New Glass in the Windows
I’m not sure I ever mentioned it, but Fannie Mae had a very strange way of “replacing” cracked windows (I wish I took a picture of it…you can . . . → Read More: Watching Paint Dry….Rental House Update #4
Whew! This house rebuild is starting to tire us out! We’ve officially been working on rebuilding this house for just over a month now, and we’re pretty happy with the progress we’ve made so far (ha, but it sure would be nice to be done!!! …maybe in another month or so).
In the last update (see Rental House Rebuild – Update #2), the plumbing was completed, the furnace was fixed, the deck was power washed, the basement “grow room” was torn down, the bathroom was prepped for painting, and the entire main floor was primed. That was a ton of work, but progress must keep moving forward! Let’s see what we got finished in the last two weeks.
The Rental House Rebuild – Update #3
After writing down a list of all the things we tackled in the last 2 weeks, I’m pretty impressed with what we got done again! . . . → Read More: The Rental House Rebuild – Update #3