I still remember that exciting phase of life right after university graduation. I had landed my first job with a pretty decent pay - let’s just say enough to get me dreaming about owning a place. But, there was one teeny problem. I hadn’t been employed long enough to be a good bet for lenders. Enter my partner, who luckily had a steady job history.
Our dream? To not just buy a house, but to buy one that would help us earn as well. We dreamt of a home with a rentable section – commonly referred to as a "mother-in-law" apartment.
The quest began.
But dreams are one thing, reality another. With our wish-list in hand, we found ourselves a Realtor and began house-hunting. The process was no walk in the park. Our must-haves made our search narrower and trickier. But, as with all great quests, patience paid off. We stumbled upon an older house, that, wait for it… had a mother-in-law apartment! It wasn’t the picture of modern aesthetics, but we saw potential. Potential to make it our own, and potential for a good return on investment.
And, it was ours!
First things first, with the help of a lender, we got our finances in order. Knowing our budget meant we could make a confident offer on the house. Once the property was ours, we rolled up our sleeves and began to spruce up our future rental space.
Tenant to the rescue!
Our goal was clear: to live comfortably while having a part of our mortgage offset by a tenant’s rent. And you know what? It worked out beautifully! Shortly after listing our mother-in-law apartment for rent, we found a tenant. That rental income significantly cushioned our monthly mortgage burden. The days of paying sky-high rents were behind us. Now, we were homeowners who had tenants covering a hefty chunk of our mortgage.
Steady income set the basis for the future.
Years flew by, rental rates climbed, and so did our savings. Four years into this journey, our savings and the home’s increased equity positioned us to consider a new home. But we were too attached to our first purchase to even think of selling it. So, we decided to retain it as a rental property. Fast forward to today, the rental income from that first home is almost triple its monthly mortgage payment! Not a bad deal, right?
The longterm growth.
In the decade since that first purchase, we’ve added a few more properties to our portfolio. Each property taught us something new. Some homes didn't bring in instant profits, but as rental rates rose, so did our cash flow.
If we could navigate those waters, so can you!
You might wonder why I’m sharing all this. I believe that our journey could be yours too. Real estate might seem intimidating, especially if it’s uncharted territory for you. Worries about hefty down payments, loan approvals, or just the vastness of the real estate market might be holding you back. I've been there. But here's the thing, if we could navigate those waters, so can you!
Every home, every property has a story. And this was the story of our first. It's been a ride filled with lessons, profits, and personal growth.
So, to anyone thinking of diving into the world of real estate, I'd say, "Why wait?" Your story, your first property, awaits you. And who knows? A few years from now, you might be sharing your journey, inspiring someone else to take that leap!
Thinking of starting your own real estate journey or have a story to share? Drop your thoughts in the comments below. And hey, if you found value in my story, consider giving it a like or sharing it with your friends!