My Fifth Rental

My fifth and most recent rental was bought in February 2012. This rental is one half side of a duplex. With 3 berooms, 2 bathroom, and a one car garage, I stole this property at $55,000! The initial appraisal before I renovated it was $76,000.

I currently have a 2 year lease on this property for $725 a month. It costs me about $400 a month. What I love about this unit is that is is only 7 years old. Two things to be mindful of in particular, are the roof and the heating and air system. Since the house is only 7 years old, these will lasts long time, but that’s not the case with most rentals. If you are planning to hold on to a rental for the long term, these are expenses that you need to account for in the future, because they are around $5,000 each to replace, and depending on the age and condition of each, they will need replaced at some point. I bought this property with the possibility in mind of selling my house in a couple years and moving into it. With the equity in my house and the money I have saved, I could pay the loan off and be mortgage free! And for a single guy, 1250 square feet with 3 bedrooms, 2 bathroom, and a garage is plenty of space – even if I start a small family there! I will detail the renovations to this property in the next blog.