My Second Rental Property Investing In Gary Indiana

Описание: My Second Rental Property Investing In Gary Indiana!
So after I bought my first rental property in Seattle Washington in 2018 which was a duplex househack it took me a while to save up the money to buy rental property number 2!

But in June of 2020 I broke into the Gary Indiana Real estate market and purchased this single family home!

🏠 My SECOND Rental Property Explained🏠 I purchased this single family home from a turnkey provider in 2020 for $60,000. 💵 💵 At the time this house was rented for $875 a month. Now it's rented for $1,000 a month. I've had the same tenant in it for over 3 years including during the craziness of 2020 and 2021!🤯 With a monthly mortgage payment of $360 most people would think that I must be profiting approximately $640 a month. This is one of the main mistakes🙅‍♂️ people make when they underwrite a long distance deal. You need to account for property management and vacancies and maintenance.💁‍♂️ I take my $1,000 a month in rent and I knock 30% off the top or $300 to account for paying my property manager and setting aside a sufficient amount of money for vacancies and maintenance. I then deduct the $360 mortgage payment, which includes principal, interest, taxes and insurance from the remaining $700 a month. This means that I have a profit of $340 a month in cashflow. Most people would say $340 a month isn't worth the hassle of being a landlord. Well when you multiply that times 12 that's $4,080 a YEAR! 😎 Again that's not a life-changing number and it doesn't really seem that large. But when you realize I only had to put 20% down on the $60K house I put $12K down to acquire this house so if you divide $4,080 by $12,000 you'll see I have a cash on cash return or yield of 34% on my money! Cheap MIDWEST RENTALS SUCK? Hell no!😤😤

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