Are rental properties worth it? So far, it has definitely been worth it for me. Especially in an owner occupy situation. I would hardly have any extra money every month if I didn’t have rent coming in. This would considerably hinder my investment portfolio growth and ultimately slow my plan for early retirement.
As of June, it now costs me an average of $255.58 to own this house. For those of you that read my last rental property update you might be wondering why it increased so much. Last month was the first update that I’ve done and I made a mistake and forgot to include home owner’s insurance. I couldn’t own the house without it, so I’ll be including it from now on.
This was the most expensive month that I’ve had since I bought the house. In June, it cost me $381.61 to own this house. This was largely due to the fact that I got my first quarterly water bill. Aside from the water bill I had to unclog some pipes upstairs and I purchased a couple gallons of Drano. This was really the first expense that I’ve incurred. Everything else that I’ve done I’ve been able to do on my own for free.
I managed to make another additional mortgage payment of $60.78 this month. If I continued to make that same extra payment for the life of this rental properties mortgage it would reduce my 30 year loan to 21 years. I would like to pay it down even faster than that but money is pretty tight right now and I’m working on another house deal. My father and I are partnering on a deal for 3 rental properties with a total of 7 units. Our estimated close date is July 28th, but it could be sooner depending how fast the seller and his attorney want to work. I will include those three rental properties in this post when the deal comes to fruition. Hopefully before this month ends!