A few years ago during the big mortgage meltdown, I became a homeowner for the first time. Although I purchased my first home, it was not one that I planned on living in; I had made the decision to become a real estate investor. Since then I have added one additional investment property bringing my[…]
Someone pointed out that I am long overdue for a financial update on my rental properties. You’re absolutely right. Since buying the second rental property last year, so much has happened that I haven’t taken the time to evaluate just how they’re doing financially. It’s time to share.
For those of you who have not been around for the past three years, I now own two rental properties containing three units. These homes are located in an economically depressed area in Pennsylvania. Did I mention that I live in New York City?
I decided to buy both of these homes strictly as investments. In order to do that, I raided my 401(K) in the form of loans to finance my purchases since I did not have the cash on hand and because it’s incredibly hard to find financing for homes valued at less than $50,000. You can read more about that decision in Why I’m Buying Rental Property While Still In Debt. Anyway, it’s time to get to the finances. […]
I’m kicking one of my tenants out of my house at the end of the month, but that’s a whole different story. I’ve already listed the house for rent to get the ball moving. After listing the house, I have received emails, texts, and phone calls from just about everyone in the ZIP code as well as a few of their distant cousins the next town over. I mean a lot of people.
One person sticks out more than others. She called as I was busy making the usual 3 hour drive into Pennsylvania. She loved, loved, loved the photos of the house and thought that it would be perfect for her and her daughter…but was I accepting Section 8 tenants? Reluctant to rent to Section 8 participants (send me hate mail after reading), I told her that the house was not child proof as the windows did not have safety bars on the second floor. Not to worry, she said. Her daughter was 21. Crap! What excuse to use next? […]
So, I bought a house yesterday.
I know that it was less than two weeks ago that I told you that I had been thinking about buying a second investment property, and now here I am telling you that I’ve gone ahead and done so.
It was a quick process, really. I had been looking at homes and contemplating buying something for about two months. Finally, on Tuesday, May 1 my brother texted his realtor asking him to send me a list of available homes. I saw the house and put a verbal offer in on Saturday, May 5. All of the papers were signed and the deed exchanged on the 21st, only because I delayed the closing by 4 days. […]
I mentioned in my review of April that I’ve been considering purchasing another investment property. I’ve come to this decision after a very long thought process and a multitude of discussions with my brother. We’ve crunched the numbers together and what came out at the end made so much sense to us, that I’m willing to share it here with you.
If you listen to the news, it would make you run in the opposite direction of buying property at a time when you probably should be running directly to real estate. Apparently many of you do not watch the news either because, according to the U.S. Department of Housing and Urban development, existing home sales were up 5.3% in the first quarter of 2012 versus the same time last year. The housing affordability index is at its best, because of low housing prices and record low mortgage interest rates. The average interest rate for a 30-year fixed-rate mortgage was 3.88% during the first quarter of 2012. If you’re in a stable financial position and have been waiting for the right time, now might just be the best time to buy. […]
I became a landlord (landlady?) on April 7, 2010 when I purchased an investment property with a tenant in it. The property was purchased from a friend and he assured me that she was a wonderful tenant. Better yet, her rent was always on time. Since my tenant has terminal cancer, a government funded program paid for 75% or her rent which was sent directly to the property owner. The tenant was responsible for the balance as well as all utilities.
I would basically be responsible for upkeep and maintenance, changing the batteries in the smoke and carbon monoxide detectors and, of course, the taxes on the property. Based on my investment, if nothing major broke, and I had a 90% occupancy rate with no rent increases or major tax increases, I would break even in a little over three years with no mortgage on the property. It seemed like a perfect opportunity for me, until the tenant decided that paying her balance of the rent any time before the middle of the month was too bothersome for her. […]