Today was the first step.  I filled out the pre-qualification for the loan.  Need to have that done first and foremost.  Next I have to go online and thaw my credit reports so they can do a hard pull.  Oh well, get ready for my credit to be knocked down a little due to that.

I have a place/location in mind and a few houses in mind.  The numbers all work, not a ton of money, but the overall returns are good – and good diversification over the next 5 to 10 years.

I’m thinking that buying the house will be the easy part.  Getting a renter and doing the books will be the harder part only due to the learning curve, but that’s also why I’m aiming to purchase a single family home that’s not going to be the best return on investment, but something I can use to learn and better my knowledge base in this area.

Going to start a new section call “Real Estate Investing” so folks can follow along there.

I’ll toss up all the numbers once we have them.

The rates are not looking as good as I had hoped.  Looks like they’re in the 5% area right now for commercial type loans.  The good news is, the local credit union is only looking for 20% down for a single family as opposed to 25% down that I was prepared to do.

The 20 vs 25 is actually better on my cash on cash return (cash I put down / cash I get back = percent return)

Taxes are low and rents are reasonable.  Looking at a place within walking distance of downtown and other amenities.  Things a renter would be looking at and entice them into renting.

Also to help with the learning curve, I’m not wanting a fixer-upper.  It’s going to need to be turn key.  Give me a month or two to go through it, touch up any paint that needs it, any maintenance, etc and then it can go on the market for a rental.

Here’s to the first step.

 

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