Taking the Plunge – Signing the Mortgage Papers for Rental #1

It’s a little scary, and expensive, to cash out your equity. I signed all the paperwork today to do so. When all is said and done I’ll be paying about 4k to get 50k out of Rental #1 (as long as it appraises).

We bought Rental #1 in May 2010 and had it rented by September 2010. Definitely spent a little too much money and time before renting it, but we now have a wonderful tenant who is on a 2 year lease.

Now I’m dying to buy #3 but don’t yet have the cash. It should be in my hands in two weeks, but I should really stop shopping and checking availability on listings as I have to submit proof of funds with any offer I submit.

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One thought on “Taking the Plunge – Signing the Mortgage Papers for Rental #1

  1. Craig Kamman says:

    Awesome. I am a firm believer in rental property to build wealth. It is not the cash flow that is appealing to me and the management of them can be a pain in the butt from time to time, it is the equity building that is the carrot on these ventures. I own several rentals myself, my cash flow stinks right now – but every month the rents are knocking down $1100 in principal for me.

    Check out my excel spreadsheet “rental property analysis” on my blog – it is a free download, feel free to pass it along. (I have my name and number on there promoting my real estate business – so it is free advertising for me…)
    Basically you can punch in the numbers, purchase price, rent, inflation, mortgage info and it will graph out your ROI, ROE, and cap rate through the life of the property. The trick is putting good numbers in, to get realistic figures…

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