Buying My Forest Real Estate Rental Investment Property | How To Invest In Real Estate As A Beginner #realestateinvesting #realestate #rentalproperty #landlord
In today’s video, I am walking you through my first real estate investment property that I have purchased and breaking down the numbers on this real estate investment. I think this video will be helpful for you especially if you are a brand new real estate investor or if you are someone who wants to simply get into real estate investing and understand what the benefits of real estate investing are.
This investment property that I bought came with a tenant that was renting below market rent, and the property also needed some cosmetic renovation. The foundation, structure and mechanics of the home we’re good, however, aesthetically I could use a good facelift, which is exactly the kind of property that I am looking for.
Because it was a little outdated and beat up, I was able to buy the home as is and was able to get a decent discount off of the retail value of the home due to the interior condition. With my plan of renovating the interior of the home, and doing it fairly affordable I believe that I will be able to add value to this property, and therefore build the equity position that I have in the home .
I bought this home for $73,500 and I’m now putting roughly $15,000 into the renovation of the property. My plan is to do mostly cosmetic work such as painting, the home, painting the cabinets, putting new floor down, reclaiming the hardwood, and fixing the bathroom. Through all these renovations, I am looking to modernize the home and make it ready for the next tenant.
These renovations in the home will pay multiple dividends as once again the home is now worth a lot more than I paid for it as it is now in a much nicer condition and the comps for similar homes are willing to the $100,000 range. In addition, now with these upgrades, the home will be able to rent out for a much higher price, and therefore, I will get more income out of the home, and it will perform as a better cash flowing asset. The new position of equity allows me options of either selling the home at a profit, borrowing against the new equity in order to buy more properties, or leaving it as is and enjoying a higher return on my investment.
The additional benefits of owning this rental property are the tax depreciation benefits that I will receive, the standard appreciation of the home and neighborhood, and the principal pay down as I continue to pay off the mortgage.
#realestateinvestor #realestateinvestingforbeginners
5 июн 2024
