First Investment Property
We bought our first investment property in the late 1980s. We had been married for 5 years. We both worked full-time. We paid our bills on time, so we had good credit. We didn’t need tens of thousands of dollars for down payment because we could assume the existing loan on the property. The property was a one bedroom one bathroom ground floor condominium. The seller was an elderly woman who was having financial difficulty. How did we know the seller’s circumstances? We asked our Real Estate Broker. The seller accepted our offer of $46,000 and we filled out the paperwork to assume the existing mortgage with the bank. Assuming the mortgage meant we didn’t have to come up with tens of thousands of dollars to put down on the property. We just paid the difference between the $46,000 contract price and the existing mortgage balance, plus closing costs. The property was in good condition, so we painted and had the carpets professionally cleaned. Within a week of closing, we placed a “for rent” advertisement in the local newspapers, and began screening tenants.
Benefits of Real Estate Investing
More than 25 years have passed since we bought our first real estate investment. What benefits have we gained? During the real estate boom in 2007, the condominium we purchased grew to more than $150,000 in value. The rent in the late 1980s was $375. Monthly rental income has increased to $1,080! As a retiree, you can live off of the positive cash flow from your real estate investments!
How Did We Learn About Real Estate Investing?
In the late 1980s, there was no Internet. To learn about real estate investing, we read books, subscribed to newsletters, and attended seminars. To learn more about getting started in real estate investing, click here.
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The opinions expressed herein are solely those of the Author/WebMaster. Before taking any action, please consult your real estate, financial, and legal advisors.