Lately I have been watching a lot of videos about budgeting and building wealth. As of late, I have really been looking at ways to pay my mortgage off sooner.
For the past 3 years I have been a homeowner, and now will have to transfer due to my job. That said, I do not want to sale my house. I would rather turn it into an income property over doing that.
In learning more and more about becoming a landlord and researching possible property managements, I have been also looking at our budget and how we can make this property a true INCOME property.
Right now, remaining balance is almost enough to not have put a dent in the original loan amount. Unfortunately, I did not go into homeownership with a down payment. Granted I do not have a PMI (pretty mortgage insurance), I am stuck having to combine Escrow and my mortgage.
On one hand, that’s great because I only have to put into my property taxes and insurance a little every month. On the flip side, though, that raises the amount I have to pay every month several 100s of dollars. Until I have paid enough down (like 20%), I have to keep it.
With the market as it is now, I can definitely probably rake in enough to cover it, but not with a management company. Management companies will take between 8% and 12% of the pay day, which takes from your bottom line. Only way to truly affect that is through shopping around for insurance, CA taxes are just up there.
So, to help get that down, I have been looking at videos, looking at my budget, and trying to find a future home for us that fits our needs and budget goals.
We have no finite leads yet, but know that being a first time landlord is a tad expensive and not necessarily a guaranteed passive income hustle.
~MindSpeaka
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