scine
New Contributor
- Joined
- Jun 23, 2008
- Messages
- 46
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User Power: 30%
Hey all!
Well, many of you remember me from my asking about rentals over the past few years, and I've got one solidly under my belt with a good tenant.
Basics of the deal:
$110,000 purchase price. Home was built in 2002, and is in GREAT shape. (Appraised in October at $139,000)
$22,000 down (20%)
$88,000 owed.
A few K in "upgrades", so total in is $26,000 roughly.
Place rents for $995 a month, mortgage is $649, and $99.50 for my management company.
I make approximately $250 a month in profit.
So, with the real estate market "stabilizing", I'd like to get another rental under my belt before things turn around and places become more expensive.
However, I only have a few K in the bank at the moment. So, I was talking with someone here and they suggested a second mortgage on the existing rental to have as my down payment for my next rental.
I like the size and price of the home I bought, so likely, I'll be purchasing one as close to the original rental as possible in terms of square footage and price point.
So, what do you all think? Is this a wise way to go to get another rental under my belt?
About me:
I work as a Senior Linux Admin. I make $83,000 a year and my job is solid. After taxes, I make $2,350 every 2 weeks. I have my main residence with a mortgage of $1,610 a month, and my normal day to day bills. No debt other than that. No car payment, no children, no credit card debt, no wife, nothing.
One paycheck covers almost all my bills (I like to go out from time to time). I usually have about $2,000 a month free and clear after all my bills are paid.
Thoughts? Thanks in advance everyone! You've really, REALLY helped me out over the years!
Travis
Well, many of you remember me from my asking about rentals over the past few years, and I've got one solidly under my belt with a good tenant.
Basics of the deal:
$110,000 purchase price. Home was built in 2002, and is in GREAT shape. (Appraised in October at $139,000)
$22,000 down (20%)
$88,000 owed.
A few K in "upgrades", so total in is $26,000 roughly.
Place rents for $995 a month, mortgage is $649, and $99.50 for my management company.
I make approximately $250 a month in profit.
So, with the real estate market "stabilizing", I'd like to get another rental under my belt before things turn around and places become more expensive.
However, I only have a few K in the bank at the moment. So, I was talking with someone here and they suggested a second mortgage on the existing rental to have as my down payment for my next rental.
I like the size and price of the home I bought, so likely, I'll be purchasing one as close to the original rental as possible in terms of square footage and price point.
So, what do you all think? Is this a wise way to go to get another rental under my belt?
About me:
I work as a Senior Linux Admin. I make $83,000 a year and my job is solid. After taxes, I make $2,350 every 2 weeks. I have my main residence with a mortgage of $1,610 a month, and my normal day to day bills. No debt other than that. No car payment, no children, no credit card debt, no wife, nothing.
One paycheck covers almost all my bills (I like to go out from time to time). I usually have about $2,000 a month free and clear after all my bills are paid.
Thoughts? Thanks in advance everyone! You've really, REALLY helped me out over the years!
Travis
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