I closed on a 3-family house! I realized last night that I didn’t buy my personal home (although I will live in one unit), I effectively bought my first business. I’m now a landlord and property manager, hoping to earn revenue and good returns off rental income.
On January 5th, I didn’t even know this 3-family home existed. By 3:00 PM on January 9th, I had an offer in for over $450,000. In March, I closed.
From January until now, I’ve basically been in a non-stop hands-on educational course. I’ve learned about the real estate contract rules in Rhode Island, landlord laws for the city where I bought the property, subordination agreements, lead laws, landlord obligations to tenants, historic district rules and requirements, historic window repair, fire alarm systems, and a wealth of other topics I’m forgetting.
It’s been intense. Until I closed, I had a lot more moments of, “Am I making a huge mistake?” Now, I generally think, “This could be awesome!” But I’m aware sound money management over the next year is essential to ensure it’s awesome and not a nightmare.
Just in case, I did nickname this house my “nightmare house” and think often of the classic Tom Hanks and Shelly Long movie “Money Pit.”