Back in February I purchased my first rental property. It is a two family that I owner occupy. It’s worked out great so far and it allows me to live at a much lower cost then if I were to have bought a single family. Obviously, I would be doing much better if I wasn’t occupying one of the units but I need somewhere to live.
As of May it now costs me an average of $186.40 to own this house. That’s really not bad all things considered. I could get $750-$800 for my apartment so if I didn’t live here I would be profiting somewhere between $563.60-$613.60 and then when the mortgage is paid off $854.39-$904.39 which is what I’m really looking forward to. An extra $850/month would be awesome.
May was the first month that I made an additional payment on my mortgage. Though it was only an additional $60.78, if I continued to make that same extra payment for the life of the 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 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 properties in this post when the deal comes to fruition.