Well I'm taking the plunge

Donnel · Post by **Donnel** » Thu Mar 16, 2006 3:40 pm

Got loan approval today to buy a 2-family flat in a nicer part of St. Louis City.

Needs a bit of work but I will be living in one unit and renting the other.

Rent should take care of my mortgage. Retirement planning here I come!

Adivina · Post by **Adivina** » Thu Mar 16, 2006 3:42 pm

Hope it all goes smoothly for you, can't offer any advice as I have never done any renting before!

Donnel · Post by **Donnel** » Thu Mar 16, 2006 3:44 pm

The plunge was more directly related to this being my first home purchase.

The rental part is just an added bonus in my opinion!

Post by **Tossica** » Thu Mar 16, 2006 3:49 pm

Wow. Tough to find property around here that would work out like that.

2 unit building would cost around $300K on the low side. You'd need to charge like $1700 a month for the second unit in order to pay for your mortgage!

Donnel · Post by **Donnel** » Thu Mar 16, 2006 3:51 pm

Yep I'm getting a really good deal and the truth of the matter is I'm only getting it through connections.

Current owners need to get out not owning anything, but the place needs alot of work.

I also found out about it before it was listed.

Tikker · Post by **Tikker** » Thu Mar 16, 2006 3:53 pm

inc hidden architecture faults that drain your bank!

just make sure you secure lease contracts, and good security deposits~

Donnel · Post by **Donnel** » Thu Mar 16, 2006 3:55 pm

I'm kind of fortuneate that it's in a better part of the neighborhood then most rentals you see. Hoping to attract some better quality tenants.

Though from working with my dad all these years on his rentals I think it's very true that the people you WANT to rent to (those that pay on time and don't screw up the place) are the people that don't want to rent for long and would rather get their own place.

Eldred · Post by **Eldred** » Thu Mar 16, 2006 4:25 pm

You can't go wrong with realestate, if I had the money to do that kind of stuff I'd do it in a heartbeat.

Darcler · Post by **Darcler** » Thu Mar 16, 2006 5:56 pm

We just bought a house as well, closed on it Tuesday.

Cong~

liquidstayce · Post by **liquidstayce** » Fri Mar 17, 2006 7:35 pm

Congrats to both of you! Very cool.

Jay · Post by **Jay** » Sat Mar 18, 2006 4:19 am

duper super la~

Minrott · Post by **Minrott** » Sat Mar 18, 2006 8:18 am

Good plan. Just a tip. Don't spend all of the money from rent on mortgage payments if you can afford not too. Set aside a 'business' checking account and keep at least 10% of it in there. You'll need it when their washer breaks or pipes explode etc, and having the seperate checking account will make it less headache for you come tax time.