Well, I've officially joined the ranks of stressed out landlords!
To make things as complicated as I possibly could, I purchased my first two properties at once. I feel lucky I survived the last couple of weeks. Details:
-- One 7-unit and one 10-unit, each with 10% down
-- Each roughly 15% below appraised value
-- Total net cash flow roughly $1500 per month to start
My wife will manage the properties, and believe it or not she's having fun even with the expected early headaches. She's the detail oriented one of the marriage. We've established relationships with three handymen with good references. She's also met with the tenants, and things went well.
Both properties are low-income. While I'm aware of the negatives, the positives are worth it: First, it's much easier to find a $350 renter than a $1350 renter, and second, most of the renters are on assistance from city, which helps place people there already. That will cut down on advertising costs when there are vacancies.
The 10-unit is on a very large lot, large enough to build another 10-unit. That may be our next move. I need to find out how to finance new construction, and start taking bids. The thought of using land I already own is appealing, I'm assuming I can save a few bucks that way.
Wish me luck!!
:D
