Saturday, December 29, 2007

Rental - Duplex

This was my first investment. I am actually a college quitter, but that is what drove me to succeed. While in college I rented a duplex with a couple friends and it finally dawned on me, and I thought, "the owner here really has it goin on" he owns these properties and not only does he not have to pay for it, he is actually making money. That is when I decided that is what I wanted to do. So I bought a piece of property and built one. (on a side note, I have learned that all property you buy should not only be profitable at the moment, but also in the future. For instance-- my duplex makes me money now, but is also located where commercial property is quickly surrounding it. This increases the future resale because there is always the possibility that someone will want to purchase my property for a very large sum of money and tear it down for their commercial investment.) I currently treat my duplex now, somewhat like a three unit. I made the mistake of building it too large. To compensate for that, I split one side (upper and lower) and I currently live in the basement of the split side.-- both sides of my duplex are not the same. The split side is bigger than the other.-- I do realize that, on one hand, the living situation is not 100% ideal. I mean, I own it and I live in the basement. But, on the other hand, my mortgage payment is 1,300 per month and I receive 1,650 per month in rental income, AND I live there. I'm definitly not complaining. This gives you and idea where I am at with this, everything else will be posted as a progress report.

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