37k house - remtal Property returns - debt reduction

Reviewing My Rental Property Returns

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. […]

No Vacancy For You - I'm Quitting My Job And Retiring by 40

No Vacancy For You

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? […]

I Bought A Rental property With My 401K

I Bought A Rental Home With My 401K

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. […]

Why I'm Buying Rental Property While Still In Debt

Why I’m Buying Rental Property While Still In Debt

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. […]

tenant threatening me with legal action

Tenant From Hell Threatens Me

I know that I haven’t updated you on my entire weekend with my tenant from hell, but I promise you that a long and detailed post on it is coming up. I just couldn’t pass this one up. Today is June 30 and I came in to my office to a voicemail from my tenant threatening me with legal action because I changed the locks on my house…the house that she moved out of…from last weekend. This is the same house that she assured me that she no longer had anything in and was completely finished with. […]

Losing My Tenant From Hell

Losing My Tenant From Hell

I have purposely not updated you on my dealing with my tenant because I knew that this day would come. My tenant from hell is leaving my house. Let the celebrations begin! Usually I give you the long version of my dealing with my tenant, but this time I figured that I would give you the short, short version.

As you already know, my tenant has a habit of not paying the last portion of her rent on time. A program pays about 80% of her rent to me directly and she had to pay the balance. If she didn’t pay her rent by the 6th of the month she would incur a late fee. She had been on a decent clip for about 2 months with paying her rent on time and then she fell off the cliff.

Tenant From Hell Round 4?

Tenant From Hell Round 4?

It’s been a while since I updated you on my tenant from hell.  First, I have to say, thanks for following this saga.  From the outside looking in, I know that it sort of looks like a soap opera, and some of you now know the story better than I do myself.  If you don’t, just browse through the rental property category to get caught up.  Now, last time that I updated you on my tenant, I made a surprise visit to the house and found hell and chaos waiting for me.  We hoped that she would be able to pay her rent until her lease expires in April.  She even gave me a check for January’s rent ahead of time. […]