Liz and I are incredibly close to buying our very first investment property (excited!!). It’s a foreclosed home and is in need of some repair, but with only $9,000 (or so) and a little elbow grease, we could have instant equity of about $20,000 in the home once it’s all fixed up! While it would be nice to put a quick $20k in our pockets, this actually isn’t the plan with this house. Ideally, we’d like to find a solid renter that’s willing (and able) to pay $1,000 a month for their stay. Since we’re paying for the property with cash, nearly all of the rent is pure profit.
The Original Plan(s)
Before Liz and I got pregnant like a couple of jackrabbits, the ORIGINAL plan was to:
buy an investment property fix it up rent it out save up buy another investment house have a baby
Then the original . . . → Read More: Another House Opportunity? Really? What Should We Do?
Have you ever thought about getting into the rental game? Personally, I’ve been enamored with the idea since I was 16 years old. And now, 14 years later, it looks like I’ll finally be throwing my hat into the passive income rental ring! YIPPEE! Watch out Monopoly man, you may be getting dethroned! Now where did I put my monocle…?
Leading Up to the Purchase
So how did Liz and I find our investment property? Let me tell you, it wasn’t easy. Prior to this property, we scoured the entire area (for the entire summer) for anything that was for sale under $95,000. We walked through about 10 properties – four of those we simply walked away (for various reasons), and the other six we were outbid on by typically more than $10,000. We wanted to find an absolute deal, not pay retail price for a home.
There was one . . . → Read More: Our House Offer Was Accepted! Let the Rental Games Begin!