Should I stay or should I go?

[Steven Bays]

I bought a duplex for 128k when the market suggested 140k. I have an amazing renter for 6 more months. Before I stopped thinking about real estate investing and starting applying action, I made some decisions I may have regretted. Some opinions would be great. I have 18 k student loan debt 7k ring payment, just got engaged. And now a huge house payment (1024) a month. I rent the other side for 650. My fiancé also has 40k in student loans. I understand that I need to pay off debt and build cash and that's why we have written our expenses and eliminated a lot of them and I have taken on a part time job. Should I sell this property to find a better deal on MFH? Also, it will be a long time until our debt excluding the house is paid off. Am I putting my nose to the grindstone for years until the debt is gone before looking into another property. I am definitely overwhelmed with all these questions. Thanks all

[Jon Holdman]

The 50% rules includes all expenses (taxes, insurance, maintenance, legal, CPA, lawn care, etc.), vacancy, and capital (roofs, furnaces, etc.) Its based on market rents, so if you're giving free days or a discount that's part of vacancy. That's "economic vacancy". From the remaining 50% you have to cover the P&I payments on your mortgage, if any. What's left is your cash flow, pre-tax.