Currently I own a three-bedroom, three-and-a-half bathroom townhouse. This is very much an unintentional rental! After many years of being unable to refinance, I was finally able to do so in March of 2013. This saved me over $350 per month!
Prior to refinancing, make sure you have a good grasp of your credit score. Having good credit is a top priority for me, and as a result I use Credit Karma to monitor my credit for free. No monthly commitment, no credit card charges, no cancellation madness. Just monthly credit score updates for free.
While the townhouse is not pictured, it is very similar to the image below.
Below are the financials of my rental property, which include a monthly allowance for repairs and maintenance expenses. Not too long ago I raised the rent by a small amount on my existing tenant, leading me to wonder when the right time to raise the rent might be.
Townhouse Rental Financials
|Monthly Rent Income|
|Less: Management Fees|
|Net Rental Income|
|Escrow (Taxes, Insurance, and PMI)|
|Net Income (Deficit)|
With monthly principal repayments in excess of $300, this property is close to break-even. If I were to factor in the tax benefits I currently receive from owning this property the scale dips a bit further into the positive direction. Not near as nice as being cash flow positive however.