What would you do with 15k?

[Austin Richey]

What if you had 15,000 in your possession right now. What would you do with the money to make more money?

[James Wise]

@Austin Richey

You could use the money as a down payment on a rental property. Non owner occupied I am seeing 25% as the minimum requirement. This would put you at a $60,000 property. Don't go in penniless though, things can and often do come up.

Also the notion that a property bringing in $18,000 in rent is going to net $15,000 is pie in the sky.

Let's assume you purchased a $75,000 property and put $18,750 down. You have a 30 year mortgage at 4% interest for the remaining $56,250.

You are looking at an average of $9,000 per year in operating expenses to cover the following.

• Taxes
• Insurance
• Repairs/Maintenance
• CapEx
• Property Management
• Vacancy/Non payment of rent

After that you have your $355 monthly mortgage. Which amounts to $4,260 This leaves you with an average NOI of $4,740 Not a bad investment if the rents and expenses are correct but nowhere near $15,000 NOI.

Also note that I am skeptical that you could retain that much rental income every month at a price point that low. Even if it was a duplex the rent to price ratio is still too high to be a stable neighborhood and a duplex would have on average higher expenses than a single family home.