New to rentals! basic startup plan.

[Michael Mounlio]

I have a couple books on the way and listening to one from audible now. Looking to transition into rentals full time in the future (15 year transition). 

So i bought my 1st home at 47,000$ and never had the idea to rent. We happen to find a house in foreclosure and was able to make the purchase and keep the 1st house. We started to rent the 1st house with a cash flow of 200$ monthly. Rent is set a bit low so we could get our feet wet and figure it all out. Had 1 very bad tenant (5 dead chickens in living room). Monthly inspection now in place...

1st house was reappraised at 60k we owe 38k so assuming useable equity of 80% gives me 10k. 

2nd home bought at 57k appraiser at time of purchase said fix all the small issues and its 120k+. We have remodeled 2 bathrooms, master bed, adding another bath, relocating laundry, and soon will start the kitchen. Hoping that the new value will be in the 150k+ range and that number seems very conservative given the value of the other homes in the area and their sale price. 

Assuming 75k in equity plus what we have gives me close 100k.  My wife has went back to school for a new degree so we are in a chill period. I bring in 100-120k and she will start out in the 60k range once out of school. Her new field should take her to north of 120k in the years to come. 

I think we have a good start Going. We want to find a larger apartment as our next property. Something in the 6-12 unit range. I like the idea of apartments vs houses. I like the idea of sticking to 1 type of investment style however im sure we will move house to house to flip every 2-4 years so I'm not considering that splitting up my styles that much. More of a side hustle is how we are looking at it.