My first rental investment deal

[Brock Best]

Ok so here’s my very first rental property deal. 

Purchase price $51,000

Single family home

3 bedroom 1 bath 1120 sq ft

$15,000 down payment I used with a Home Equity loan from my primary residence. 

20 year mortgage loan for $36,000 at 5.5%. Payment of $247.64/month.

15 year home equity loan for $20,000 at 4.99%  payment of $158.06.  

Total monthly cost of $405.70

Rent at $900/month

Net profit of $494.30/month

Plan is to use all profit to pay off home equity loan as quick as possible to use for next property. 

I also have a cash reserve account for any and all other expenses.

Also paid property taxes and insurance upfront.

[Brock Best]

Hey not too far away. Railroad is picking up like crazy here so there’s a lot of demand right now. Not many of the new hires stay long, but some do. All I need to do to the house is a fresh coat of paint in the bedrooms and find some decent appliances.