House #2 Converted to a Rental Property

Another financial milestone occurred this weekend as I moved out and converted the house I bought last year to a rental property. So far so good.

I am not receiving anything close to the cash flow of myfirst rental property. I am getting about $50/mo over PITI so I am about break even once any maintenance is factored in. This is no surprise - I have only owned the house for a year and have made no significant improvements to the house (except for landscaping and painting). However I am excited because it sets the stage for this becoming a great rental property over time. I am confident I have good, low maintenance renters in the home that will take good care of the property.

In a couple years I will focus on getting this property to generate a nice positive cash flow - right now I just need to get this off my list of things to get done before my overseas assignment starts.

Related in Rental Property:

2012 Passive Income: Rental Property (Feb 10, 2013) Its been several years since I did a thorough analysis of our rental property performance and investment return. Here is an analysis of our 3 rental properties for 2012 that should give a pretty reasonable view of how these investments...

Why Invest in Rental Property (Mar 13, 2012) The real estate investing infomercials of the housing boom suggest that real estate could make you rich - the benefit of real estate being exponential returns of your investment. While I only have a few small real estate investments there...

Rental Property Investment Breakdown (Sep 27, 2011) Here is some overdue financial record keeping from our latest rental investment in August 2011. This breaks down all our out of pocket costs to purchase the property and get the 1st tenant in place. Out of Pocket Investment in...

Comments (4)

That's awesome, especially if you have only had the house for a year. Are you all ready to ship out?

Congratulations! Since you said you're confident you have good renters, do you mind my asking how you went about finding renters and what you look for?

I agree with Jonathan. It's great that you were able to convert and rent a place that you weren't going to be using anyway. At least it is not a money pit during your time abroad.

Contrary to popular belief, the end of the year is one of the best times to look for, awesome descion

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A personal finance weblog of my journey to reach my goal of $2 million + the value of my primary residence.
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