Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 6 years ago on . Most recent reply

User Stats

492
Posts
234
Votes
William S.
  • Rental Property Investor
  • Overland Park, KS
234
Votes |
492
Posts

$0/m cash flow. How to increase it?

William S.
  • Rental Property Investor
  • Overland Park, KS
Posted

I have a house on the market (former primary, was rental, now listed). If it doesn't sell I'm going to do some rehab work and keep it long term as a rental.

I have a really good interest rate 3.875% 30-year 20% down of $121k purchase price. The loan balance is currently $93,553, but no cash flow. See numbers below...

Purchase Price$121,000
Rent$1,200
Appraised Value$125,000
Mortgage Balance$93,553
Vacancy$100.00
PITI$746.97
Maintenance$50
Future Cap-Ex$100
PM$120
Lease Fee$83.33
Total Monthly Expenses$1,200
Projected Cash Flow-$0.30

I'm interested in possibly refinancing to reduce the mortgage payment (increase the cash flow). What type of mortgage would be a good option? I can't increase rent by rehab/adding living space. The house is small and is maxed out, space wise. Any other ideas? Thanks!

Most Popular Reply

User Stats

1,127
Posts
1,082
Votes
Craig Curelop
  • Real Estate Agent
  • Post Falls, ID
1,082
Votes |
1,127
Posts
Craig Curelop
  • Real Estate Agent
  • Post Falls, ID
Replied

@William S. - Interest rates have shot up so i don't think refinancing will do you much good. 

@Brian Garrett brings up a great point. As long as it is more than one bedroom, you should definitely be able to get more if you rent by the room. If it's a two bedroom, I'd suggest trying to rent it by the room for $700 each. That would give you $200 of cash flow.

I am doing my first rent by the room with a larger house. I am going to get 33% more in rent for renting by the room. 

Loading replies...