The Joys of dealing with rental properties. I am have been investing in Hard Money Loans since 2005 and decided to try something a little different and purchase a couple of rental properties and other types of cash flowing properties.
That was one of the biggest mistake I made my when I lost huge amounts of money in the crash of 2008.
I didn’t buy cash flowing properties.
Learn from my mistakes if you are looking to invest.
Lesson 1…Buy cash flowing properties especially if you use debt.
I’m going to post of few of my deals here if people are interested in seeing the numbers.
The Big goal is to build a Monthly income of about $25,000.
$25,000 will keep up with the expenses of my wife. (totally kidding…well…kind of kidding. It feels like that sometimes.)
To build $25,000 in Monthly passive income you can’t kill your slaves…I will talk more about this later..
Here’s how the numbers worked out on this one. Found the deal on KSL one night after Jaxon suggested I buy a duplex. (have to give him a little credit)
Purchase price…$150,000
Value…$210,000 (I close in 7 days which helps)
Monthly Rent…$1500
Insurance $600
Taxes $900
It has been kind of funny dealing with renters and repairs. I kept the renters and they always pay late but they do pay.
Got my first repair sent to me yesterday.
It’s a good thing I have a handy man that will fix this. Always have a handy man somewhere close to the property.
Lesson number 2…Have a handy man.
So far I have paid Repair cost of $520…
It’s been good.
Wealth Created
$60,000 in equity
$1320 in Month Residual.
If you have questions ask away.