I'm looking into buying my first rental property and just thought I'd post here. With interest rates so low, I've just refinanced my house into a 10 year loan and took out $40,000 of equity. At < 3% interest (and tax deductible) it felt like a no brainer.Initially I was just planning on investing the money in stocks, but for a long time I've been interested in purchasing a rental property. This seemed like the perfect opportunity.I'm looking at a duplex less than a mile from my house selling for $70k. It's an older neighborhood in a decent suburb. Taxes are $4200 a year.One of the units is currently rented for $600 a month. The other is a bit smaller and upstairs but it should be able to rent for $500 a month.I plan to do all the maintenance myself, which should help my profit picture. There are a few exceptions such as the furnace and things that need to be done ASAP.Any thoughts? I still need to more precisely work out the numbers, but back of the envelope calculations seem encouraging. I don't want to plan for any price appreciation, so this has to be profitable over time just through increased equity and positive cashflow eventually.
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