I have multiple personalities – at least when it comes to investing. While my main style of investing in the stock market is Dividend Income Investing, I also look for multiple sources of Income. This is for a few reasons as I hope to explain further in an upcoming article on the subject but I will briefly touch on right now. First you need sources of income to build your Dividend Income Portfolio because if you don’t have them you may never save enough to reach your income goals. The other reason is for safety reasons. With multiple sources of income coming in it acts like an insurance policy so if you lose one source for any reason you still have income coming in. And of course the ultimate goal should be to have Excess Multiple Income pouring in so you can reach your goals even sooner. I personally have multiple sources of income, this blog is one of my newest sources. I also never stop looking for opportunities and I have decided it is time to invest in real estate. So as they say I do practice what I preach and now a new journey has started.
Coming Soon is a series of articles on my Purchase of a 90 year old home that has been converted to four Apartment Units and has set empty for most of the past decade.
It is a daunting task to say the least but I am going to take on the challenge. If you have ever thought about doing the same you might be interested in following along as I plunge deeper into a real estate deal than I ever have before.
I am certain I will have many trials along the way and question my own sanity but hopefully if I stay focused the reward will be high. The first in a long series of articles will be published soon which will cover my experience from purchase to hopefully fully renting the units out. I hope to publish before and after pictures and will welcome the advice and thoughts of my readers about decisions.
My background is that I have owned three rental units in the past but these were always places I had lived previously and rented out. The renovations of prior structures were minor compared to what I am about to embark upon. Where do I start – I don’t have a clue, but I will figure it out and move on.
When all this is said and done I intend to then decide if I want to find another place to renovate or even start a real estate flipping business.
I chose this particular property because I know this area can be a little slow in re-selling properties so I know that I can rent out units and more than cover the mortgage and expenses. In fact, just renting two units should have me seeing a profit. The home is located in what is considered a very good area of town and there is currently a shortage of rental units in the area and practically no upper end apartments of which I intend to make these in hopes of attracting more affluent tenants. There are four apartments. One three bedroom with two baths and close to 1600 square feet. The other three units are two bedroom with one bath and are all around 1100 square feet. Each unit will feature stainless steel appliances, Hand scraped flooring and each unit will come furnished with its own washer and dryer.
Its a old style farm house with a wrap around porch on the front, with a porch swing on one end and on the other end I intend to have a couple of old fashion rocking chairs. It presently has an old wooden deck in the rear but I will remove that and replace it with a concrete patio and a built in park grill for barbecues.
Other features I plan on having for the apartments are a forty year Metal roof, electric fireplaces( the existing ones are wood burning but I do not want wood burning fireplaces in rental units for safety reasons), new siding with a fresh new look and adding shutters, new landscaping, an upgraded drive and parking area and a multitude of safety features like Fire Extinguishers, more smoke alarms and emergency exit signs and emergency lighting in the central stairwell. All lighting will be upgraded to new low energy and long lasting LED fixtures, modern ceiling fans and I will look for energy efficient appliances where practical. I am also considering upgrading water heaters to tank-less heaters to save space and energy but have not made a definite decision as of yet. Anther feature I am considering is skylights in the upper units and a light tube for the central stairwell.
I believe this will be a learning experience for me and invite you to follow along on my journey.
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Thoughts or comments? I would love to hear from you !