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Updated over 8 years ago,
Closing on property 2, Unit #5
Hello my BP friends. I don't post as much on this site anymore, but i still stalk the different posts each day. What more can i say...i love real estate. We are a long way from our goal of replacing our W2 income, but things are starting to move much quicker. We haven't spent a dime of money from the 4 unit building we bought 1.5 years ago. We are just letting that money add up. One of these days that will be used on another property(ies). So far on both properties, we have just used our savings. This has slowed up the process a tad, but we are starting off slow and steady, and not putting any extra stress/risk on our business. The wife and I are 34/33 years old and while we would love to leave our current jobs, we don't have to be rushing to much.
Anyway, the house/numbers:
The house is a 3 bed, 2 bath, move in ready property with updated bathrooms, and a fairly nice kitchen. We will have to add a refrigerator, but that is all. Fenced in yard, and a detached 2 car garage(that needs to be scraped and painted). House has new AC, and new windows, with a fairly new roof.
Numbers:
Purchase price(after 4 counter offers) $54,000.00(with a 1 year home warranty, and $2,000.00 of seller paid closing costs). Property should rent for $775-800.00. The inspection and appraisal are next week, but I think this house is probably worth 10k more than the contract price. I am hoping so, because we could parlay that into property number 3!
$800 - 150(vacancy and repairs) = 650 - 417(pitia) = 233.00
Even if the property doesn't give us the equity we need, we are on pace for buying another property in about 6 months or so. I will keep everyone posted!
DJ