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Updated over 6 years ago on . Most recent reply

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

@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.
- Craig Curelop
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- Podcast Guest on Show #350