We did a home refinance in April, since we were able to get a 2.25% interest rate. We got about 5 years off of our loan and we also pulled out some money that was going to go towards some home improvement projects. However, after we did the backyard, we decided to use the money we pulled out towards a long-term investment (rental property). We looked at some houses in college towns when we went to visit Oklahoma and Kansas in June, but didn't really like any of the ones we looked at. We kept watching the houses that came online and decided to put an offer on one the end of July. We only did a video tour and didn't actually go see it in person, but the inspection was pretty good and we trust the realtor's judgement. It was a little bit difficult to do everything from a distance, but we were able to close on the house the 3rd week of August. We were a little late in the rental season, but we were able to find a family to rent it out starting September 1st. It's a small, older home - 3 bed 1 bath, less than 1300 sq ft, but it's got a really good location. After our expenses for mortgage and property management and such, we only make about $100/month, but we're not really expecting to make money now. (And hopefully we won't LOSE too much money on it, because I'm sure we'll have to replace some things that won't be cheap). When we pay off the mortgage in 15 years, we should see some more money coming in. We also got a great low interest rate on it, 2.75%, so at least we have that going for this investment. Only time will tell if this works out well for us.
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