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Thursday, December 23

I'm Buying Another Rental Property

As if I didn't have enough projects going on right now, add to that another condo I am purchasing. This was a strategic purchase: a current tenant of mine wants to split up with her boyfriend. The boyfriend is someone I have known for more than 10 years, and drama aside, I'd love to help him out and make a little money while doing it.

I'm buying a small condo for... drumroll, please... $11,000. That's not a typo. It's less than 800 square feet with one bedroom, one bathroom, a decent sized living room and small kitchen. It's also not in a very desirable area, but it's not in the ghetto, either. Would I live there? Maybe not - but then again, if I was single I might. My partner would leave me if I suggested we move there, if that gives you an idea of the area.

I don't have $11,000 sitting in a bank account so I will access funds some other way. My bank offers a Simplified Line of Credit at 11.74%, plus a 3% fee to access the funds. That's not cheap, but it's uncollateralized and easy to access. Besides, I would pay it back in a matter of months.

I love a bargain. The condo was listed at $17,000 and last sold for $28,000 in 2004. The owner moved out several months ago and just wants to rid herself of it and the monthly association dues. I'm happy to oblige.


  1. Wow, new resaurant,new condo great! Take advantage while you young and carefree, you really can't do that so much later in life. Enjoy! Enjoy! Good luck, and I can't wait to hear more.

  2. Wow. That sounds like a good deal. You can't get a condo that cheap around here and if you did it wouldn't be in livable condition. You should get a great return on that investment.

  3. Thanks guys. I'm trying to build up as much passive recurring income as I can. I don't think I'll ever "retire" but would like the flexibility of being able to work because it's my passion rather than doing it to make ends meet.

  4. Wow too :)
    You can buy a second hand car with that amount of money here..but a condo...nowhere!
    I don´t know the area....but sounds like a really great deal.
    All the best for it.