Analyze My Rental Property

[Guevara M.]

15 years ago I purchased a 1 bed/1 bath condo while I was still living at home with my parents but never had any intentions in living there. I had no bills other than my cell phone and one credit card. My cousin was a new relator at the time and kind of talked me into purchasing it. I knew nothing about REI and still don't know as much as I wish but I'm ready to actually buckle down, learn and do whatever I have to do to make up for all the years I wasted not being more serious about this. What I have learned is that I paid market value for the property at the time when I should have offered way less. After purchasing it I did a little work to it and started renting it out. I wasn't making anything off it though, just enough to pay all my expenses (I think). It did help me out a lot during income tax time though. A couple of years ago after my long term tenant decided to move out I decided to renovate it and put in about $10K of my own cash to make it look nice. I'm sure I overdid it but I have gotten nothing but great compliments on it from all the showings. I was able to increase the rent and have had it rented since then with one month of vacancy. I've been contemplating if I should sell it within the next couple of years to use the equity to fund a SFH or just continue to rent it out. I'd most likely be doing this through a 1031 exchange unless there is a better option. I do have plans on using a HELOC on my primary residence to use as a down payment for a SFH as soon as I have learned enough on analyzing properties. My strategy is to do the Brrrr method to hopefully start acquiring rental properties. I have between $50K-$60K in equity in my primary house. Can you guys take a look at the numbers on my condo and let me know what you think? Purchased it for $36K Payoff as of now is $23K Current market value is $60K Current expenses are: Principle, interest, taxes - $315 Insurance - $50 HOA - 180 Home warranty - $50 Rents out for - $825 I'm not sure how to do the vacancy rate and CapEx. Any help, advice, tips on how I could get into more rental properties would be much appreciated.