I previously wrote about why I bought a rental property before my primary residence. I thought it would be a great idea to show you where our rental property is at today.
I have had a lot of people call me crazy, and suggest I sell my rental. The truth is, I enjoy having our rental property, and the passive income it creates is great for our finances! It is going to help set us up for financial freedom in the future.
Our current payoff balance on our loan is $76,152.86.
The estimated Property Value is $120,000.00.
Our current checking account balance is $3,343.09.
This means that if we sold the house and paid off the loan, the balance in our checking account would be $47,190.23. Of course there would be other expenses, but the number helps give me perspective.
The house has been in good condition, without and major repairs needed.
We did have a tree branch fell on the fence during a storm, and that cost us $200 for the repair.
We also decided to restain the deck this summer. The labor and materials were $200.
I have met the renters a few times, and they are always very friendly and respectable, and they keep the property in good condition.
They have renewed their lease, and it will go through May 2017. We kept the rent the same, as our taxes actually went down.
Our renters have always paid in full and on time, and the house has always looked well during walkthrough.
I am not saying that owning a rental property is without stress. When the storm came through that broke the tree limb onto the fence, it was something we had to handle right away.
Instead of letting the stress control us, we let out property manager handle it.
We allow our rental to be passive income. Do we lose out on some money since we pay a property manager? Yes. Is it worth it for us? Absolutely!
We can breath easier knowing that our rental is helping us prepare for our financial future, and that it is offering us a strong investment at this time.