Our Last Purchase

• Secret: Own assets that continuously pay you so you don't have to trade your time for money (i.e. your day job) anymore!
• We choose real estate because it's easy to understand, easy to do, and provides great tax benefits.
• Other types of businesses are too labor intensive, capital intensive, or too difficult to understand!

This was our most recent purchase. Think about this:

• $12,950 came out of our bank account one time to acquire/rehab property (see below).
• $2,971.99 goes into our bank account per year.
• This is a 22.95% return on the cash we spent to acquire the property. If you're into stocks, think of this like a 23% dividend yield! What stock gives you that?
• But remember, the house is also worth about $29,000 more than what we paid for it.
• It is fully insured for hazards and liability minimizing all risk and the price is steadily appreciating (thanks to no housing bubble here in Houston).
• And we get huge tax deductions by having this property.
• Real estate obviously is a powerful asset.

3 Bed, 2 Bath home, built 2003, located on 288 and 610 (med ctr)
Purchased for: $76,000
Down payment by us: 10% or $7,600
Rehab paid by us: $4,000
Financed by private, non-banking company: $68,400 @ 6.5% with no bank fees!
Appraised for: $105,000 (after rehab)
Rent: $1000

Update:

• We only cash flow about $250 / month (a 23% return / year!) on this house because we only put 10% down!
• In the near future we will be refinancing this with a lower interest rate (now's the time!) and with 50% down for even more cash flow!
• Alternatively, we could sell it at retail price, but we need to wait for a 1 year of ownership to avoid short-term capital gains tax. But this is an awesome rental and we'll probably just keep it for the cash flow - that's the whole point!
  
  And here are some pictures of the house:

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