Just heard back from my agent around 3:00 AM this morning. I received a late-night/early-morning e-mail that woke me up… Well, it’s official, I’ve been approved by the lender for rental property #2! This was a short-sale that took 3 months to go from acceptance of the offer to final lender approval.
Now the real fun begins! I have to come up with around $70,000 by the end of February (and secure a bank loan). More updates to follow soon.
woot! Out of curiosity, do you plan to purchase a primary residence some day? Or are you waiting for marriage to do that?
Leigh,
Yes, I do hope to purchase my own residence sometime. I’m single for now, so I don’t need to put too much thought into my current living situation. In a few years, hopefully when I’m ready to settle down (and retire), I can choose to relocate to a much cheaper area to live. If the rental property shows good appreciation, I may elect to sell it and use the funds to purchase 2x properties elsewhere. That way, I can have a primary residence and still get cash flow each month. Hopefully things work out to plan!
Take care!
that is great, congrats!
Pauline,
Thanks! I’m very excited about the win!
Best wishes!
That’s awesome and is going to be so good for the cash flow once you can get a renter. Hopefully you won’t have the satellite issue with this house. And even better they didn’t want you to raise your bid.
JC,
Yeah, this new condo is more of a traditional condo, so I don’t anticipate having another satellite issue. The other property resembles a single family home, so what you can/can’t do isn’t so clearly defined.
The bid was actually increased by $5000. Not ideal, but still shouldn’t impact the cash flow too much. Should be a trivial thing over the long run.
Cheers!
congrats on your second property! You have a nice diversified income stream. I want to keep my income from rentals/dividend stocks close to 50/50 long-term.
AAI,
Thanks! Good strategy you have there. I agree, it’s best to diversify with both stocks and rental property. 50/50 mix sounds like the best of both worlds.
You are doing great.
Best wishes!
Congrats! Can’t wait to read the updates. Hoping to make an offer on my first investment property in a few weeks.
Terah,
Thanks! Best of luck on your own investment property endeavors. Property hunting is a fun, exciting and stressful time.
Take care!
FI Fighter,
Congratulations. You’re turning into a real estate mogul. Awesome stuff.
I couldn’t imagine coming up with $70k in a month. That’s crazy. I guess you’re right about selling off some of the portfolio, but that’s okay because you’ll be compounding at an even greater rate with the cash flow you’ll be generating pretty soon from this property.
Good luck on everything going smooth!
Best wishes.
DM,
Yeah, it’s rather difficult to come up with so much money in such a short period of time. I sort of wish the lender would have postponed the decision until the end of March or so. But I can’t complain about the outcome, so I’ll take it. I’ve already started the process of selling some stocks, and will need to start hoarding away the next few paychecks.
Things will be really tight in the short-term (I’ll have to withdraw even from the emergency fund), but I believe this will be a good long-term move.
Best wishes!
FF, how are you going to get 70 k in a little more than a month? Are you going to rob a bank? If so, will you need a driver?
Martin,
LOL! Your comment cracked me up. Well, the Joker got away, so it looks like it can be done…
Cheers!
Awesome news!!! How long will it take to come up with that $70K? Will you sell mostly stock to raise it or a combination?
Jon,
I have until the end of February to come up with the $70k. Yeah, I’ll probably have to sell most of my stocks to come up with the downpayment, sadly.
Cheers!
[…] early January of this year, the bank approved my short-sale bid to purchase Rental Property #2 for $290,000. Through the use of leverage, I did NOT have to come up with the entire $290,000, […]
[…] early January of this year, the bank approved my short-sale bid to purchase Rental Property #2 for $290,000. Through the use of leverage, I did NOT have to come up with the entire $290,000, […]