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Thursday, December 23

I'm Buying Another Rental Property

As if I didn't have enough projects going on right now, add to that another condo I am purchasing. This was a strategic purchase: a current tenant of mine wants to split up with her boyfriend. The boyfriend is someone I have known for more than 10 years, and drama aside, I'd love to help him out and make a little money while doing it.

I'm buying a small condo for... drumroll, please... $11,000. That's not a typo. It's less than 800 square feet with one bedroom, one bathroom, a decent sized living room and small kitchen. It's also not in a very desirable area, but it's not in the ghetto, either. Would I live there? Maybe not - but then again, if I was single I might. My partner would leave me if I suggested we move there, if that gives you an idea of the area.

I don't have $11,000 sitting in a bank account so I will access funds some other way. My bank offers a Simplified Line of Credit at 11.74%, plus a 3% fee to access the funds. That's not cheap, but it's uncollateralized and easy to access. Besides, I would pay it back in a matter of months.

I love a bargain. The condo was listed at $17,000 and last sold for $28,000 in 2004. The owner moved out several months ago and just wants to rid herself of it and the monthly association dues. I'm happy to oblige.

4 comments:

  1. Wow, new resaurant,new condo great! Take advantage while you young and carefree, you really can't do that so much later in life. Enjoy! Enjoy! Good luck, and I can't wait to hear more.

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  2. Wow. That sounds like a good deal. You can't get a condo that cheap around here and if you did it wouldn't be in livable condition. You should get a great return on that investment.

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  3. Thanks guys. I'm trying to build up as much passive recurring income as I can. I don't think I'll ever "retire" but would like the flexibility of being able to work because it's my passion rather than doing it to make ends meet.

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  4. Wow too :)
    You can buy a second hand car with that amount of money here..but a condo...nowhere!
    I don´t know the area....but sounds like a really great deal.
    All the best for it.

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