Today, I received my annual mortgage summary statement. My interest payments were more than my principal payments. It is sad to see how much I'm paying to the bank for the mortgage. But if you don't have the cash to buy outright, this is the only option to build equity one payment at a time.
I also received a first complaint from my tenant about a minor issue. I have addressed the problem and will take action if necessary.
Overall, I have a negative cash flow on my investment property every month. This means that my rental income does not cover my mortgage payments and outgoing expenses for the year. In hindsight, I should have charged more for rent. But I wanted to find a long term tenant that will take care of my place while they stay there.
As long as I have a renter, my investment property will eventually pay itself off. Two more years, I shall re-evaluate the real estate market and my situation to see if it is worth keeping it or not.
Being a landlord can be difficult but it really depends on the tenant. It appears you have a good renter and is not causing too much trouble. After two more years I might be in the market to buy a rental condo myself lol. But I'll need some time to save up a 20% downpayment first.
ReplyDeleteYes, that's right. I've been fortunate. But now, my tenant is month to month after the 1 year lease and can leave any time. Hehe, you sure are building a big nest egg quite quickly!
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