Hi everyone, this is my first post here and I hope to become a long time member.
I recently purchased my first home and I am renting out the basement to a friend. This has been ongoing for about 6 months. I do have a mortgage on my current property.
I would like to get an idea of the strategy I should start incorporating into my goals. For the past 6 months, I have been using the extra rent money to fix up my current home and install any improvements / upgrades. Fences, Doors, Windows, etc.
I am charging $750 a month in rent without utilities (it is a friend) and I am getting to the point where I do not need to purchase anything for the home and I can start saving the cash.
I would like to be able to purchase a second property (2-family) that I can rent out 100% in the future.
Currently my plan is to save the money from rent + my income in order to obtain another $50,000 for a down payment / closing fee.
I plan on putting this income into a savings account / CD, in which I can take out an FHA loan for the second rental property at the right time.
This sounds pretty simple, and basic but I wanted to run it by on the forum for some of the veterans here to dissect and maybe give me some new ideas or strategy.
If anyone has a book they can recommend (many to choose from!) that would also be appreciated.
Thanks!
