Well…my snowball is on hold! We received our tax refund and my bonus is coming up and I decided to invest it in real estate. I’m buying at TRIPLEX!!! This is so exciting! Let me show the numbers real fast!
Purchase price: $ 87,110
Down payment: 20 %- $17,422
Yearly taxes- $2984
Concessions- 6%
Yearly insurance- $1000
Payment= $685/month
Rents= $1950/ month
Cash flow (before cap ex)- $1265.
The MAJOR repair this place needs is a roof! Luckily the hubby is a contractor so no biggie for us. It is no actively leaking but LOOK AT THAT CRAPPY DESIGN! It’s my husband’s nightmare but he is confident he can improve the middle where water and ice sit!
This property is going to be awesome! It will seriously catapult my debt payoff within the first month!!! After my debt is paid off this property could literally cover all of our monthly expenses and then some (except my husband’s truck payment- I will be making a post about this eventually *insert eye roll). I thought about just quitting work after the debt is paid off and living off of this rental (a little ambitious), but I thought about it and obviously I cannot do that yet! I would like to have one more property AND a single family home for us before I do that! Also, if this rental covers all of the monthly expenses….I can dump ALL of my income into investments!!! HOW AWESOME!!
P.s: We had planned on using some of the tax refund money for a vacation with the family, instead I plan to cash flow this after we buy this home. Travel and memories with the kids comes FIRST in my journey no matter what! However, with coronavirus being a huge thing it actually kind of worked out that we won’t be traveling until may or june instead of in April!
What are you doing to increase your savings and/or debt payoff this year?
Pennies to Riches 