How Did We Do It? Part two
We purchased our first rental in December 2012, after a few big failed attempts. The market was a seller's market, you had to be very fast with your offer and not waver at all in your decision. Part of why we got the first rental is that DH and our realtor did the inspection prior to our bid so we removed the inspection clause. Our first rental was a 1987 bank owned foreclosure duplex that came with month to month tenants. I'd already found a property manager six months earlier so he was ready to jump in. I worked a demanding IT job so I was not going to be able to participate much in the venture and DH wanted to do the maintenance/rehabbing but not the tenant facing work. Having a PM made sense for us.
That property needed very little work, but the roof was at the end of its life. I put a chunk of money aside over and above our capital savings to pay for a roof, which we replaced at the end of 2013. That property cashflows around $800/mo after all expenses and maintenance and it has never had any major work other than the roof. The tenants have now been there for 18 and 8 years. One unit is Section Eight subsidized so we receive annual to-do lists from the housing authority inspector. So far it hasn't been a hassle and they've never refused our rate increases.