First Home Leased!
Well I leased the first home, and I am excited!
I was able to obtain a tenant on a Lease with Option to buy. They made a non refundable deposit of $3,000 that I will apply as down payment if they are able to purchase the home within 12 months. If they are not able to purchase, they forfeit the deposit, I figure this money will cover any possible damage that may be done to the home in the event they do not buy it. Any losses over $3,000 and I will file an insurance claim and it will mean they went pretty wild destroying the home! Lets hope that doesn’t happen, they seem like really good people.
I am getting $1,225 per month in rent and my payment is only around $1,000 so I will get to enjoy $200 per month in POSITIVE CASH FLOW for the next 12 months. They lease option also calls for a sales price that is around $20,000 more than I paid for the home. If I can make $22,000 in 12 months on a $5,000 investment I will be very happy!
After getting this unit leased I have decided to proceed with 3 more homes. I will keep you posted. I am also looking into the possibility of doing a MODULAR DUPLEX! If I do I will keep if for years, after looking at the initial numbers it could create significant cash flow for me. My plan would be to apply all of the cash flow to paying off the note and owning the Duplex free and clear one day. In the right area the Duplex can bring in around $1800 per month in rent, so if I one day own it free and clear thats a nice chunk of change. Of course there is not telling how high rents will be by the time I own it free and clear. I can’t help but do the math on owning 10 Duplexes free and clear one day, I could have a nice six figure income just off of my Duplexes one day. This is what Modular Cash Flow is all about!