Money Matters
short+sassy
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Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
AW: Closing on a rental investment house this afternoon!
I'm excited to be adding another rental investment house to my portfolio. It's a single family home, 3 bd/1.5 ba. The purchase price is $38K, however, it needs a new roof, new gutters, and some other repairs. But the good news is, it already has a tenant living there paying $1200/month and none of the repairs would require the tenant to leave.
The tenant has been there since 2008, so it's nice they are pretty long standing.
This will add about a $650/month cash flow to my income, after I subtract expenses and estimated future repairs/vacancies.
Re: AW: Closing on a rental investment house this afternoon!
I recently changed up my rental investment strategy. I used to look for multi-family homes, thinking those would have a better return on investment, but it was few and far between finding good deals on those. Recently, I started looking for cheap single family homes, that still rent for a good amount, and it has opened up a whole new world for me. Those opportunities are EVERYWHERE in my area. I wish I had the money to just snatch them all up, lol.
Thanks!
Atlanta used to be a really hot area for "buy and hold" real estate investing. Which is basically what I do, buying a house to hold it as a rental. It's still better than average but, with home prices rising at a higher rate than rents in Atlanta, it's not quite as good as it used to be. At least that is the gist I hear on my real estate investing forum, but have not investigated myself.
Thanks!
That will be exciting! I've been following along with your all's progress on the building.
TTC since 1/13 DX:PCOS 5/13 (long, anovulatory cycles)
Clomid 50mg 9/13 = BFP! EDD 6/7/14 M/C 5w6d Found 11/4/13
1/14 PCOS / Gluten Free Diet to hopefully regulate my system.
Chemical Pregnancy 03/14
Surprise BFP 6/14, Beta #1: 126 Beta #2: 340 Stick baby, stick! EDD 2/17/15
Riley Elaine born 2/16/15
TTC 2.0 6/15
Chemical Pregnancy 9/15
Chemical Pregnancy 6/16
BFP 9/16 EDD 6/3/17
Beta #1: 145 Beta #2: 376 Beta #3: 2,225 Beta #4: 4,548
www.5yearstonever.blogspot.com
Thanks!
For a first home, the best way to get ready when you have a few years is to improve/maintain your credit score and save up for as much of a down payment plus e-fund that you can. A 20% down payment plus closing costs plus a healthy e-fund is optimal.
When you are about one year out, start checking out online listings. It will give you a feel for what to expect in different neighborhoods as far as pricing, size, and condition. That way, when you are ready to start seriously looking, you should have a pretty good idea of your must haves and you will also recognize an especially good price.
Thanks!
If I remember correctly, you live in a fairly rural area, but there is a much larger city about 1-2 hours away. Just for lack of people, rural areas can cut both ways for both landlords and tenants. It's hard for tenants to find good housing and it's hard for LLs to find tenants. So, yes, vacancy rates can be longer. But, on the plus side, once a tenant moves in they usually stay long term...because choices are limited for them also.
The large city near you, even its surrounding suburbs, might be a good option. It just depends on how HCOL it is. Ironically, LCOL or MCOL are generally better areas for real estate investing. Yes, the rents are lower than a HCOL, but the prices of real estate are even more substantially lower.
It also doesn't take much time to manage, except when you are doing showings. My strategy is to make good quality repairs and improvements the first time. Fix it "right" instead of fix it for "right now". I've had a variety of tenants living right next door to me for the last five years. I'll go months and never hear from them, other than to collect the rent check, unless we happen to be hanging out on the porch or back yard at the same time. It's pretty sweet.
It is definitely crazy how much real estate can vary.
Even within NOLA, it varies by a substantial amount. This particular house is, technically in NOLA, but way in the outskirts. 30 minutes from downtown and that is without traffic. But a similarly sized condo in the downtown will be $2-3 million.
And a similarly sized condo/house in the French Quarter. Ooofff. Fuhgettaboutit. $4-5 million.
Just a little outside the downtown/Quarter area, but still usually a nice neighborhood. $150K-$350K.
Though I'm sure even the FQ/Downtown prices sound cheap to a Bostonian! There used to be an HGTV show that followed three Manhattan real estate companies. Man, some of the NYC apartments I was like, "Yeeaahhh. I couldn't afford just the HOA fees if that apartment was GIVEN to me, lol."
TTC since 1/13 DX:PCOS 5/13 (long, anovulatory cycles)
Clomid 50mg 9/13 = BFP! EDD 6/7/14 M/C 5w6d Found 11/4/13
1/14 PCOS / Gluten Free Diet to hopefully regulate my system.
Chemical Pregnancy 03/14
Surprise BFP 6/14, Beta #1: 126 Beta #2: 340 Stick baby, stick! EDD 2/17/15
Riley Elaine born 2/16/15
TTC 2.0 6/15
Chemical Pregnancy 9/15
Chemical Pregnancy 6/16
BFP 9/16 EDD 6/3/17
Beta #1: 145 Beta #2: 376 Beta #3: 2,225 Beta #4: 4,548
www.5yearstonever.blogspot.com
Congrats! I am super impressed that you were able to purchase a property for $38K that rents for $1200/month! No way I could ever find that here!
H and I do want to get into some rental investments at some point--I told him I'd like seriously start looking once I reach my 40's (so about six years from now).