Real Estate Rental Property #4 Update (November 12, 2013)

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Rental Property #4 finally closed today! I’m happy to announce that all the papers have been signed and the funds wired to escrow. About $26,000 was needed in total for the downpayment and closing costs. So, no more drama… I hope. I definitely can’t say closing was smooth sailing, because it wasn’t. Luckily, I was able to find a co-signer to help secure this latest deal.

Now that Rental Property #4 is in the books, what’s the next step? Obviously, it’s to secure Rental Property #5!! But that should come as no surprise to anyone following along on this journey. Actually, I already let that “secret” out when I posted details on my latest trip out to Chicago.

Rental Property #5 is under contract, so I will write an update on that property soon. In the meantime, I’m going to take a break and relax a little bit. Closing can get stressful at times, so I’m looking forward to not having to deal with this stuff on a daily basis. This was by far the most difficult loan to date. There always seemed to be another glitch or problem that prevented us from closing on time. In total, the loan took two and a half months to finalize. And I only borrowed $64,500!

I also hear that loans #5 through #10 only get more challenging. I can’t wait. 🙂

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MartinInspirational Posts of the Week (November 17, 2013)All About InterestFI FighterThe First Million is the Hardest Recent comment authors
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writing2reality
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I wouldn’t sweat it at all. Get out, relax, and keep on pushing forward afterwards. Definitely looking forward to seeing how houses 5-10 progress!

As an aside, what are you doing to offset maintenance costs? Do you allocate an estimate a XX dollars per month and store that away in an maintenance fund, or would you keep the ball rolling and pay for it out of your personal emergency cash? Just curious as the properties mount up, and you run this more like a business, how you plan on “capitalizing the business” with backup reserves for maintenance issues.

Leigh
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Congrats! That must be a relief that it did in fact close. It’s crazy how long it took to close when the amount you borrowed was less than your down payment on the first few places…

JC @ Passive-Income-Pursuit
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Congrats on closing on #4! I can’t believe that #5 is already in the works as well. You’re becoming a real estate kingpin. That cash flow is going to pay off in spades. Once the rental cash flow surpasses your goal is it an immediate calling it quits moment or will you look to work for an extra year to save up extra cash? When we get to that point with our own FI pursuits, then I’ve already settled on working at least an extra 6 months to save up a large cash buffer and possibly try to pay down the mortgage on the house some more. I’m starting to look into some local turnkey operations here and would love to close on a rental in the 1st quarter of next year, although I’m still trying to get the wife on board with that.

The First Million is the Hardest
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Congrats on #4! It’s fun following along as you build your empire 🙂

All About Interest
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Nice job! You are buying at a fairly fast pace. You’ll be at 10 properties before you know it. I’m hoping to add a third rental next year. I’m actually in the process of buying a commercial space for my business and may post about that soon.

Martin
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I can imagine that. If they stretched you now at the loan #4 those other loans will be killing, murderous, terrific… just wait for those trained experts telling you what you can and what you cannot. Funny, four years ago they lent money to any shmoho who showed up with brushed teeth and comb hair and now they pretend how responsible they are. We are really being thrown from one wall to another.

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[…] past week was exciting — I finally closed on Rental Property #4. In addition, I attended a REI meet up and got to meet some local investors. Finally, I was in […]

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