Saturday, October 6, 2012
My First Rental House
In March 2010, I bought my first rental house. At this point I was only a little over 2 years into my career on a meager salary. The reason I was able to buy a rental house is because, as mentioned in my previous blog post, I had instant equity in the purchase of my primary residence. I was able to get an equity line against my own house of $29,500. This paid for the 20% down payment of the rental, as well as all of the renovations necessary.
This house sold last in 2007 for $103,500. It was a foreclosure listed at $64,900. I ended up purchasing the house for $58,000. What a deal right? I bought this house for almost half price! Little did I know at the time, that this house would be the only major mistake I have made so far in my real estate career. Keep reading.
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Now, you got me intrigued with those last words. You were able to get the house for almost half the price of its original cost, so no one can argue what a great deal that was. How did it become a mistake on your part then? I can only assume that it was sold for a low price because of some problems that couldn’t be detected at first glance.
ReplyDeleteRegards,
Von Madison