First venture into real estate

[aiprofessional]

After 4 months of working with real estate agents, and looking at many properties, the Friday before thanksgiving we sold our condo and purchased a 4plex. We weren't sure everything was going to work out with the financing, but in the end we walked out of there as new owners and landlords. Two of the rooms were rented already, we moved into

Comments

[yoak]

That's awesome! Is three filled (as though you were paying rent) sufficient to have a positive cash flow, or does it require all four? I've wanted to do this for some time, but have some other things that need to be addressed first, not the least of which is working some on my credit.

[aiprofessional]

There is one large unit and three small ones, so if we were to live in one of the small ones and fill the rest we would be CF positive or very close to it, but we picked the large unit to live in, so we are not quite there yet. As it is, when the 3 small units are filled they will cover the first loan(we did an 80-20), so when we pay the second, which is the one with the higher interest rate anyway, we will be about even. The good thing is that the second is a HELOC, so we can just make payments to the principal whenever, extend it if we need to finance something else, or pay the interest only if we need the cash.