Sunday, July 06, 2008
I bought a house yesterday in Stark County. Well, to be more precise, Sarah and I bought a house with a friend of mine (Brian Gregg). We're going into the rental house business together. We bought the house for $90,500 and the seller is paying the closing costs. We have to install ac so our total investment is $92,500.
We will have three renters, all mentally retarded adults, and BG's brother owns a company that places caseworkers with these clients, 24/7. So we'll have $900 of rent coming in off $600 of expenses. We'll apply the $300 profit to the mortgage and own the house outright after 11 years. If we sold the house at that time, I expect my profit to be around 500 percent, not bad.
This is the first of probably three houses that we'll buy so its a great business deal. We'll have pretty much guaranteed renters and rental income so our risk is low. We formed a company to do all this, Tigertown Properties LLC.
We will have three renters, all mentally retarded adults, and BG's brother owns a company that places caseworkers with these clients, 24/7. So we'll have $900 of rent coming in off $600 of expenses. We'll apply the $300 profit to the mortgage and own the house outright after 11 years. If we sold the house at that time, I expect my profit to be around 500 percent, not bad.
This is the first of probably three houses that we'll buy so its a great business deal. We'll have pretty much guaranteed renters and rental income so our risk is low. We formed a company to do all this, Tigertown Properties LLC.
