Put a Contract on Property #4

I had no plans to expand our rentals, but market conditions have drove us to action. A property went up for sale in the same neighborhood (with nearly identical characteristics) as our 1st property that we currently have been renting out for about 5 years. Given this is a strong rental area (close proximity to a university) and the asking price was not too far off from what the asking price was on the property I bought back in 2002, my wife and I put in an offer inline with what we paid for rental #1. Turns out we reach an unexpected agreement to buy the house after the seller quickly accepted our offer inline with our 2002 purchase.

While not even looking for this type of investment opportunity, it hit us in the face and we were able to react pretty quickly given our current available cash. It was anticipating an unplanned opportunity such as this that had me hold off from committing more of our cash to further paying down our mortgages. Good thing I did.

Stay tuned for updates on our progress with moving ahead with this contract.

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)

Congrats! That's really exciting! Even though we're in our early 20's I wish we had more money saved up to make those kinds of moves. We bought a town home last year that we are living in it right now, but within the next two years we will be renting it out. I look forward to reading more about your new property! :)

Congrats! I have a question for you. Do you pay a much higher mortgage rate for a rental property? I am considering to purchase a rental property, and so far the mortgage rate is 1.5 - 1.75% higher. Does that sound right? Thanks in advance.

J, that seems about right for an investment property from what I've seen. Just so you know, if you're purchasing a second home for yourself, it'll be more in the 0.5 - 1.0% range. Again, this is from personal experience.

It is estimated that by 2015 home ownership will drop to the level that it was towards the end of the 1960′s. In this time 10,000,000 homeowners will become real estate renters. Seems like its only going to get better for the rental market?

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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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