All Forum Posts by: Andrew P.

Thanks Shaine, 

I grew up in North Augusta, and my family still lives off of Martintown Rd

Thanks guys

David- Augusta and the surrounding areas

Thanks for your responses guys!

Curt, I do plan on managing my property.  I plan on investing local, and I don't feel I would need a property manager until I exceed 4-5 properties. 

Brent, I honestly can't give you the expected expenses.  That's why I was trying to follow the 50% rule.  I can give you a list of expenses, but they won't have any monetary value

January I plan on purchasing my first investment property. I have had an interest in REI for quite some time, and I've been lurking around on the site for a few months.

I'm looking forward to unloading you guys with all of my terrible questions! Hah, only halfway joking.

First Post!

So i've been lurking around on the forums for awhile, and listening to the podcasts on and off for the last few month.  I have a question regarding the 50% rule.  

I am looking to buy my first investment home in January.  For my first home, i'd like to stay conservative and stick to a nice/decent area (move-in ready for the most part) and purchase a single-family home.  

In the areas I am looking at, a single-family home runs at around $150,000.  Rent usually tends to stay around $1300/$1400.  I've been crunching the numbers, and I haven't been able to generate a positive monthly cash flow with a 20% down payment.  I really would like to stick to a 20% down payment.  (I'm not comfortable dropping <$30k on my first investment property)

Example:

$142,000 home

Down Payment $28,400 (20%)

Rent $1395

Mortgage $734 (20% down with an online mortgage calculator)

$1395/2= $697

$697-$734= (-$37.00)/month

Is 50% towards expenses generally "high"?  Is rent too low for the price point on the house?  Should I go out of my comfort zone, and go into a lower income area (I don't want to do this for my first investment home), or am I doing the math completely wrong (lol)?

Any insight would be greatly appreciated!