Just placed a new tenant in a 4 BR 1 Bath. Beating the 2% rule

[Nathan Waters]

I invest in Joliet IL which is a somewhat low income area of older homes. I bought this house for 40K, put 20K into it and brought it up to our standards for a rental. We have a new tenant moving in within a week. The renovation took about 2 months because the holidays slowed us down a bit. But all in all, I'm really excited. We are getting $1400 a month. Ready for the next deal.

[Nathan Waters]

@Andrew Hargreave,

This is our 3rd rental in Joliet and all 3 are turning up as good investments so far. We have 4 rentals total and will be selling the out of state home this summer and using the proceeds to buy more in Joliet. One of the big concerns (there are definitely more than one) in Joliet is the age of the homes. We try to make sure our buy in is low and we resolve any big issues up front. We replaced all the windows on each house and with this last one, we replaced the roof and all flooring as well as a few other things to bring it up to a nicer standard. Its one way to mitigate unexpected issues in the future. The first one was a huge learning experience but it turned out well. It really tested our commitment. I think it was one of those properties that would have broken people that are not really cut out for this. Everything that could go wrong, went wrong. But it made us hungrier for more and I love investing in the Joliet area.