The $330,000 house that paid us $200 a month
In June we sold a house in Dayton for about $330,000.
We had bought it in 2023 by taking over the seller's mortgage. A tenant-buyer lived in it for three years. On paper it was the most valuable thing we owned.
Here's what it paid us: somewhere between nothing and $200 a month. The rent covered the mortgage, the taxes, and the insurance. Three years of owning a $330,000 asset, and it never once bought groceries.
So we sold it. After the loan was paid off and the closing costs came out, about $126,000 came back to us.
My business partner Jon, who's on the operations side, spent the summer putting that money back to work in small houses. A $35,000 house in Youngstown, $1,000 a month. A $23,000 house in Girard, $700 a month. And this past weekend, a $38,000 house in Warren that will bring in about $1,100.
Roughly $96,000 of the money in. When the third one fills, around $2,800 a month coming in before taxes and insurance.
That's the whole idea behind this letter. A big number on a balance sheet is wealth. A payment that shows up every month is income. The house in Dayton was the first kind. The three small ones are the second.
The families in these houses aren't renters in the usual sense. Each one is on a three-year lease option with a purchase price written into it, working toward owning the house they live in. We treat them like the owners they're becoming, and they treat the house that way too. The first two were paid for September before the month started.
Houses like these are the kind a private lender funds. If being the bank on a house like one of these is the part of this that interests you, the Private Lender Starter Kit walks through how it works from the lender's side, the risks included, and how to do it from an IRA: incomeoverwealth.com/kit
As promised, income over wealth in under a minute.
- Dan
We had bought it in 2023 by taking over the seller's mortgage. A tenant-buyer lived in it for three years. On paper it was the most valuable thing we owned.
Here's what it paid us: somewhere between nothing and $200 a month. The rent covered the mortgage, the taxes, and the insurance. Three years of owning a $330,000 asset, and it never once bought groceries.
So we sold it. After the loan was paid off and the closing costs came out, about $126,000 came back to us.
My business partner Jon, who's on the operations side, spent the summer putting that money back to work in small houses. A $35,000 house in Youngstown, $1,000 a month. A $23,000 house in Girard, $700 a month. And this past weekend, a $38,000 house in Warren that will bring in about $1,100.
Roughly $96,000 of the money in. When the third one fills, around $2,800 a month coming in before taxes and insurance.
That's the whole idea behind this letter. A big number on a balance sheet is wealth. A payment that shows up every month is income. The house in Dayton was the first kind. The three small ones are the second.
The families in these houses aren't renters in the usual sense. Each one is on a three-year lease option with a purchase price written into it, working toward owning the house they live in. We treat them like the owners they're becoming, and they treat the house that way too. The first two were paid for September before the month started.
Houses like these are the kind a private lender funds. If being the bank on a house like one of these is the part of this that interests you, the Private Lender Starter Kit walks through how it works from the lender's side, the risks included, and how to do it from an IRA: incomeoverwealth.com/kit
As promised, income over wealth in under a minute.
- Dan