Do you own a rental property? What’s your experience like with your rental property (ies)?
We bought our first rental property back in 2018. We didn’t have too much experience in real estate but have always heard that real estate can be great investment if done right.
We bought this property for under $100,000 but were able to rent this for more than twice the mortgage we are paying on this one, so this has been a stable stream of income for us. We were very selective with our tenants and found a good one that is still renting with us 3 years later. Having a bad tenant can be a nightmare for a landlord. (Stay tuned on how to select a prospective tenant).
Besides the nice monthly rental income, the house has also appreciated around 50% in the past 3 years. So that is the nice thing about real estate properties, they generally will appreciate over time.
Rental property is not exactly 100% passive income like some people claim it to be though. You have to manage rent, relationship with your tenant, repair, and taxes (county and local taxes). If you have a property management company, it can save you quite a bit of hassle but that comes at a cost of around 10% of your monthly rental revenue.
We didn’t have too much trouble with this house as the house was not that beat up and the tenant was and still is easy to work with. Nevertheless, with work, family, church, and very little kids to raise, we were already busy. So just having a little extra more to do each week seems to add quite a bit to our plate.
Still, this is still one of our top investments to date. Not only did we learn a lot of rental property and real estate investment, we’ve made consistent income through this property over the years.
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