For all of you real estate investors out there, we might as well start at the beginning.
We bought our first investment in 1998, when we bought an almost 3000 sq. ft. 2-unit house to live in. It had a total of 8 bedrooms, 3-1/2 baths, and the rental unit was on 1/2 of the first floor only. Our total PITI payment was $1064 at that time, and the income from the rental apartment was $495 for a 2 bedroom 1st floor apartment. In all of the almost 10 years that we owned that house, we never had a vacancy. So, hence, our payments were less than $600.00 to live in a 6 bedroom house with 2-1/2 baths and a 2 car detached garage! I would seriously suggest to anyone wanting to get started in real estate investing, that you seriously look at purchasing a multi-unit. Do not even look at multi-units over 4 units, as they are considered commercial units and would require different financing. Now, living in the same building, or even on the same property with their tenants might not be for everyone, but for some people who would like inexpensive housing payments, so that they can invest in other areas, this would be a good w
ay to start.
To go on, this house needed a little bit of work to make it beautiful cosmetically, so, we spent the next almost 10 years removing wallpaper, spackling (lots of horse-hair plaster walls), sanding, painting, installing cabinets, flooring, lighting, landscaping, etc. Always, the first priority was the rental unit, so that we would have no vacancy, and a happy tenant. You know, with less than $600 payments per month, you could afford to buy building materials.
We bought our first investment in 1998, when we bought an almost 3000 sq. ft. 2-unit house to live in. It had a total of 8 bedrooms, 3-1/2 baths, and the rental unit was on 1/2 of the first floor only. Our total PITI payment was $1064 at that time, and the income from the rental apartment was $495 for a 2 bedroom 1st floor apartment. In all of the almost 10 years that we owned that house, we never had a vacancy. So, hence, our payments were less than $600.00 to live in a 6 bedroom house with 2-1/2 baths and a 2 car detached garage! I would seriously suggest to anyone wanting to get started in real estate investing, that you seriously look at purchasing a multi-unit. Do not even look at multi-units over 4 units, as they are considered commercial units and would require different financing. Now, living in the same building, or even on the same property with their tenants might not be for everyone, but for some people who would like inexpensive housing payments, so that they can invest in other areas, this would be a good w
ay to start.To go on, this house needed a little bit of work to make it beautiful cosmetically, so, we spent the next almost 10 years removing wallpaper, spackling (lots of horse-hair plaster walls), sanding, painting, installing cabinets, flooring, lighting, landscaping, etc. Always, the first priority was the rental unit, so that we would have no vacancy, and a happy tenant. You know, with less than $600 payments per month, you could afford to buy building materials.
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