All Forum Posts by: Alan Hicks

Thanks for the reply.

I agree that the rent-new mortgage = $150. Actually a positive value.

But I counted the $-212 that I am paying today + the $150 upside = $450. I cannot discount the break even point. 

I have a second home that my disabled father lives in and 'rents' from me. 

I have owned it for 12 years.

Mortgage Balance = 79k @ 5.75% ( worth around 130k, paid 108k )

Mortgage = $812

Rent = $600

Net = $-212 each month (yes I lose money every month )

Option:

1. Pay the balance down to 50k, and finance back to 30 years:

50k mortgage @ 4.5% = payment would be around $350/month ( includes taxes and insurance ).

So, I would no longer be losing money each month ($212), and now would be bringing in more rent than mortgage ($255) = that's total is about $450 each month.

(450*12 = 5604) / 29000 invested = 19%

Thoughts ?

I just sold one of my properties.

Purchase = 90,500

Sold ( 3 years later ) = 133k

But I also have a rental from 2005

Mortgage = 808

Rent = 700

Been doing that for 12 years... yes.. I pay 108 per month.

Purchase Price = $150,000

Down Payment = $30,000

Mortgage = $120,000 ( payment with insurance/taxes = $808 )

Rent = $1100/month

End of year 1:
Total Income = $13,200

Mortgage/Tax/insurance = $9,696

Profit = $3,504

Reduction in principle = $2,101

Total profit = $5605

ROI = $5605/$30000 = 19%

Thoughts ?

Of course, i would love to buy houses for 50k and flip for 150k.. but that's not going to happen in metro atlanta.

Same here.. also Lawrenceville, Georgia.

Thoughts ?

My rough math:

End of year #1:

Rent Profit ( $532*12 ) = $6,395

Down Payment = $27,980

Drop in Balance = $1,812

Total = 8,355 / 2,7980 down payment = 30% ROI

Monthly Income:$1,100.00

Monthly Expenses:$709.77

Monthly Cashflow:$390.23

Pro Forma Cap Rate:8.21%

NOI:$11,487.80

Total Cash Needed:$31,980.00

Cash on Cash ROI: 14.64%

Purchase Cap Rate:8.21%

I just sold my last property ( held for 3 years ) and profited $53k. 

I am just wanting to invest the cash again.

I am looking at a 3/3 detached house close to my house.

Original price was $168k, then $150k, now $139k. Zillow says it's worth $131k

Rent should be around $1100/month.

As this is my 3rd house, I would need to put down 20%, so financing only 111k..

Worth it ?