Back in October, we bought our 3rd rental property. My husband is a bit gun shy when it comes to buying rentals which is why we didn’t buy another right away after our 2nd rental that we bought over 3 years ago. But, after I showed him the numbers (read: we’d be making lots of $$ now and in retirement), he was a convert.
Meet our #3!
Buying and managing our growing rental portfolio is my job because 1. I LOVE doing it, and 2. my husband doesn’t 🙂 .
So last Fall I started looking at different areas in which to buy and honed in on my “target” area in Baltimore about a half hour from where we live. I chose this area because the price of houses relative to rent is just too good to pass up. Long story short, I found a realtor who also invests in rentals, looked at a bunch of units, and put offers on some that were rejected until one was accepted.
Because the house is not right in my hometown, I wanted something that was turnkey so that I didn’t have to be there every day to either monitor contractors or do the work myself. The one I chose has everything already done and I didn’t have to lift a finger. I just had to find a tenant and start collecting rent.
I know that some people do creative financing to be able to afford buying rentals (see BRRRR method), but we like to do it the old fashioned way by putting 25% down and financing the rest with a mortgage company. Well, maybe the old fashioned way is buying it all in cash but, yeah, we’re not that rich. After all expenses are paid every month, we clear about $750 on this property.
This week I put an offer on rental #4, but it was rejected. DARN! That’s fine because I simply put another offer on the second house that I liked. Even though I liked the first one better, I know I will get the same amount of rent for the second one. Even though I love turnkey for the simplicity, this one needs a little bit of work (new backsplash in the kitchen and possibly new paint throughout since the walls are a light purple gray color) and I’m excited to put my touch on it ever so slightly. Wish me luck!
And before ending this post, here are a few more pics of #3: