Fully Rented My First Multi-Family

[Kate B.]

I was so happy yesterday about something nice that happened I just want to share my good news.

I bought my first investment property last December and then spent the next months fixing it up.  I had to change contractors in the middle after the first one marked up prices of things from Home Depot -- as if I couldn't check.  But he also had a self-esteem problem and kept needing positive feedback and I got sick of it.  

Last December, after I was under contract and days before closing I spoke to the realtor agent who helped me buy the house.  I asked what she thought I could rent each floor for.  She said $700, or $750.  That stunned me.   I asked if this was in current condition or with all new windows, new floors, new lights, new counters, etc.  She said it was after repairs.   I was floored and I told her so -- but I didn't say I never would have bought this house if that was true because I didn't believe her.   (FYI, this 3 family house was always owned and lived in by generations of one family so there was no history to check.)

Here's how it played out.   I decided to use the first floor for myself -- the whole reason I bought property in Worcester was I could not find rental property for my own use with two dogs.  I do advocacy work here and wanted a place to stay, so I took the first floor.

On the second floor I rented out two bedrooms separately, with the tenants meeting and approving of each other.   A couple is in the larger room paying $700 including utilities and a single woman is in the other room paying $550 plus half utilities which are in her name.  (I pay her the other half out of the couple's rent.)   I'll take in about $1,175 a month after paying half of the utilities.

On the third floor I also rented out two bedrooms separately with the tenants meeting and approving of each other.  There is a middle aged single man in each room.  One pays $625 plus half utilities and other pays $550 plus half utilities, which are in one man's name. That's $1,175 a month.

They all signed leases, the last one this week.  All have paid their rent.    I think RE investing suits me just fine.  Just wanted to share it.