Monthly Archives

April 2016

Daily life,

Finances going up, health going sideways

Hi guys,

In terms of finances, April has been a great month so far, as opposed to March, which was a really bad month. Here’s an heads up:

  1. The tenants in Rental Property #1 stop complaining about the issues with the home and everything looks pretty much under cruise control now.
  2. I realized that the free apartment in my building will be rented out very easily. I haven’t explained that deal yet, so let me go ahead and clear this up. I bought a 3-story building, which is in fact a small building. Each story is an apartment and can be rented out individually. Two of them are already rented out for 315€ total, and I hope to get 200-300€ for the other flat, which is in fact the best one. I may extract 550€ a month, which is great that I payed about 40K for the building.
Planning, Real Estate,

New apart… building!

As I said, RP#2 was in the works, and I finally have good news: I bought a building. Yes, a building. It has 3 rental units (three floors) and two of them are already rented out. I will use leverage as the two rented units will pay for the (20 years) mortgage. That means that the third unit will bring considerable cash flow (something between €200 and €250 a month) and will position me to buy more real estate.

I love this deal, and I will try to replicate it. Instead of condos / apartments, I will be looking for 2-4 unit buildings from now on. These are great for a variety of reasons. First, the price is not significantly higher than 1 condo. In essence, I get 3 condos for the price of 1. Second, I save a lot with maintenance and property management fees. Third, I dilute the risk: with 3-4 units I never end up in a binary situation.

From here on, I will only look for this type of deals. In particular, I hope to find buildings that get the mortgage covered when two units are rented (and the others bring cash flow). I will close the deal next month. Will keep you posted!