My husband and I took our first big step in November in purchasing our first real estate investment property. The house we purchased had already been rehabbed and was ready to go. We bought it for 37K and conservatively calculated an 11% ROI (that's before subtracting a mortgage payment). Our rental income is $575/month.
Since purchasing the house, we have put a little over $2,300 into repairs -- things like plumbing issues, new refrigerator, cutting down tree limbs, ect. It seems like every time we turn around, there is an issue with the house.
It has been discouraging. Originally, we thought we could self-manage the property, but due to time constraints, we have considered finding a property management company.
The biggest question we have right now is "should we get out?". So, how do you know when you should get rid of a property? Due to the 15 year note we have on the property, we are currently suffering a loss from the amount of repairs that have made.
We don't want to be too quick to abandon ship, but if it's sinking it's sinking. What are your thoughts?
