Properties

As of December 03, 2015

Rental Property #1
3 bedroom / 1 bath

Purchase Price: $315,000
Downpayment: $78,750
30 year fixed mortgage (3.75%)

Re-financing Price: $435,000
Equity (25%): $108,750
30 year fixed mortgage (3.75%)

Rental Property #2
2 bedroom / 1.5 bath

Purchase Price: $290,000
Downpayment: $58,000
30 year fixed mortgage (4.375%)

Re-financing Price: $440,000
Equity (25%): $110,000
30 year fixed mortgage (4.375%)

Rehab

Rental Property #3
2 bedroom / 1 bath (Unit #1)
3 bedroom / 1 bath (Unit #2)

Purchase Price: $157,500
Downpayment: $39,375
30 year fixed mortgage (4.50%)

New_Prop-4

Rental Property #4
3 bedroom / 2 bath

Purchase Price: $95,000
Loan Price: $86,000
Downpayment: $21,500 + additional funds to cover difference between Purchase Price and Loan Price (more details)
30 year fixed mortgage (4.75%)

3

Loan paid off! Rental Property #4 owned FREE and CLEAR!

Rental Property #5
4 bedroom / 1 bath (Unit #1)
4 bedroom / 1 bath (Unit #2)

Purchase Price: $180,000
Downpayment: $54,000
30 year fixed mortgage (4.99%)

chicago

Rental Property SH #1
3 bedroom / 1.5 bath

Purchase Price: $490,000
Downpayment: $98,000
30 year fixed mortgage (4.75%)

IMG_4166

Rental Property SH #2
3 bedroom / 2 bath

Purchase Price: $521,000
Downpayment: $130,250
7/1 ARM (3.75%)

IMG_4085

Rental Property SH #3
3 bedroom / 1.5 bath

Purchase Price: $470,000
Loan Price: $452,000
Downpayment: $45,200 + additional funds to cover difference between Purchase Price and Loan Price
30 year fixed mortgage (4.125%)

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{ 17 comments… read them below or add one }

1 Martin December 10, 2012 at 10:02 pm

Looks Awesome man!!!
Where is it located? Based on the price it looks like some resort area! I am in Colorado in Rocky Mountains and prices here are similar for property like this!

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2 FI Fighter December 11, 2012 at 9:12 pm

Martin,

It’s located in the Golden State.

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3 Financial Independence June 7, 2013 at 3:38 am

Looks very neat. Congrats! DO you have nay calculations on rental income on them?

I did it for couple of properties in the past and the return rate was about 2% on them : http://www.niterainbow.com/search/label/Real%20Estate

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4 FI Fighter June 9, 2013 at 8:29 pm

Financial Independence,

Thanks! Yeah, I have an excel spreadsheet I use to run the numbers. I’ll post them on this page, but I have run these numbers before in the past. You should be able to find them in the “Real Estate Updates” section.

Cheers!

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5 FNU October 19, 2013 at 9:36 am

You have inspired me!

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Reply

7 Max April 24, 2014 at 9:35 am

Question about property #4, I just realized it looks like you got a loan for $86k and the purchase price was $95k that means you should have only put $9k down, was the $21.5k used for some sort of renovation funds or am I missing something here?

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8 A Frugal Family's Journey May 24, 2014 at 9:37 pm

Great page! I like how you track every payment and show the equity and remaining principal on your properties. Keep it up, you are rocking it with your 5 rentals!

Best wishes for continued success!

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9 DividendMongrel June 25, 2014 at 9:05 am

Hey FIF,
I have been dancing around the idea of buying investment property in the near future. You seem to be very well educated in real estate and are doing well for yourself. My one question I have for you is what do you think should be a person’s net worth before they buy a home in the 150k range? I thought having a 50k net worth to be sufficient but I am a true beginner in real estate. I enjoy your blog and am looking forward to following you on your journey.

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10 FI Fighter June 25, 2014 at 9:17 am

DividendMongrel,

In regards to net worth, I think that is somewhat debatable and and a tough one to answer… My approach would be to look at things from a cash reserve point of view. For instance, after accounting for the downpayment, how much cash do you still have on hand? Also, how much do you have set aside for reserves (vacancy and maintenance). In general, it’s good to have 3 months worth of PITI stashed away + an emergency fund for your own situation.

Lastly, I would look at my asset allocation… For myself, I had a good buffer in retirement accounts (401k and Roth IRA), so I was diversified with stocks. When I purchased my first rental, I also had a pretty good sized dividend portfolio as well.

At $150k, assuming a rental property and not personal residence, you will most likely need to come up with between 20% and 25% + closing costs (few thousand).

Best of luck!

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11 Mike February 25, 2015 at 4:23 pm

With properties in multiple states, do you hire a CPA to do your taxes? Looks like IN and IL have a state income tax.

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12 JT May 6, 2015 at 10:26 am

I just found this blog late late last night and I’ve read almost half of your posts already. Thank you for taking the time out to write and share! Not to creep you out, but it almost feels like you could be my brother in terms of how you think!

My job is a little unstable, but I average $40-90k a year. I can’t seem to find the right amount of down payment to buy my 1st property. What would you say would be a fair income to start buying properties around $380-550k in California? Honestly I spend about $20-45k to help out my parents each year so that does make it a little hard, but from your experience, can you please give me a ballpark of what income, in your opinion, would be necessary and what timeline is necessary?

If your average down is $100k, and you’re looking to buy a house every year, that would seem like a $150k income would be necessary? I’m just rambling now since I’m a little confused. Anything would help!

Thanks!

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13 FI Fighter May 10, 2015 at 7:19 pm

JT,

Prices in California vary quite a bit, so it really depends on where you are looking. For example, in the South Bay, the low end homes are still around $350k or so… If you go to Stockton or Sacramento, you’ll definitely find cheaper properties there.

For downpayment, typically you need 20% for an investment property. If you were to get a multi-unit, you could house hack and live in one unit and rent out there rest. Going that route, a 3.5% FHA loan could greatly reduce barrier to entry, but you would have to run the cash flow numbers carefully to see if it makes sense or not.

In my own situation, I’ve started to work with partners so that cuts the acquisition costs for me greatly. For $100k down, with a 4 person partnership, that’s only $25k…

$150k/year income is extraordinary, so I don’t think you need that much… Not many people ever even get to that point. But the more the better! 🙂

CHeers!

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14 Mike September 8, 2015 at 8:46 pm

Hi! I was wondering what the SH stands for after rental property sh

Also, would you be willing to share what city these rentals are in?

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15 Mauij February 24, 2016 at 9:40 am

I hope to start accumulating rental properties. The possibilities that they create is amazing and the wealth accumulation and cashflow they can create is wonderful.

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16 Al Harris March 27, 2016 at 3:53 pm

Great news! Team up with this non profit to purchase your next rental for pennies on the $. They are also excellent turnkey property managers!

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17 Lane May 1, 2016 at 7:32 pm

I’m trying to a website to share my property numbers with others too. Thanks FI for being an inspiration.

Reply

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