$350 MONTHLY CASH FLOW | Prosper Inc Success and Prosper Inc Coaching
In September I began looking for my first investment property thanks to Prosper Inc. My goal was to find a home, purchase it, and lease it out with the option to purchase. With my list narrowed to ten I made an offer on a home that was listed for $254,900. My offer was for $250K and Seller pay closing costs. The offer they accepted was full asking price of $254,900 and they would pay half the closing costs. I closed in Oct. 3 and the first mortgage payment wasn’t due until December 1. That left me plenty of time to find a renter.
With a mortgage payment of $1500, the rent I was looking to get was $1650. After almost a month of running a few rental ads online, in the newspapers and a few interested people that told me they couldn’t afford it; I was starting to worry that the rent was too high. Then a family looked at the home and they wanted to rent for a couple of months while their home was renovated. Since the rental was short term and after learning that the tenant would be running a daycare out of the home I raised the rent to $1850. They signed a two month rental contract for $1850 per month (insurance was making the payments) and $2000 deposit.
During the first month they were renting the tenant had hold me their home that was being renovated had burned down and they needed to stay longer. In January they signed a rental contract for $1850 per month until the end of May. And will then do a month-to-month contract until their new home being built was finished or July at the latest.
Jason S.
Cottage Grove, MN
