All Forum Posts by: Account Closed

Thank you for that, I found it very informational. Is there any other way to get down payment assistance? Can you get a private lender to loan you the money assuming there is enough cash flow in the property to take on both a mortgage and another loan?

Could someone describe to me how down payment assistance works? I saw someone advertising they needed down payment assistance funding.

The purchase price was $2.5 mil, the mortgage was $2.0 mil and the DPA was $500,000 with $50K additional wired back the same day. How is that possible?

Would you be willing to talk about the Colorado market with me? That is actually where I want to go and I would love to hear any advice you could give me.

Thank you for that, I didn't even think about that (ooppps).

What is the difference between a MFR and SFR? What qualifies a property or unit as a MFR (are apartments multi-family resedences?)? And, how do you determine Expenses for a MFR?

I've seen the 50% rule for SFR but would that apply to a bunch of 1 bedroom apartments?

When I'm looking into a property for investment (a rental), what are the factors I'm evaluating?

I know that I need to know purchase price, gross monthly income, I'll determing expenses per 50% rule, my loan payments to determine cash flow, and what else?

Thank you for being patient with me.

I think an example would be best for this:

Lets say I have option A a property where the loan is $100,000. The rent is $2,000/month because we live in perfect land. Using the 50% rule:

Expenses: $1000 per month
Loan (minus taxes and insurance cause I don't know that) @ 30 years for 7.25%: 682.17
Profit: $317.83 (this is a SFR)

Now, in corner B we have a $1,300,000 property. It has x amount of units generating a gross monthly income of $26,000.

Expenses: $13,000
Loan for the same term and finance rate: $8,868.29
Profit: $4,131.71

Now, is that accurate? The major difference in these examples is that I can't cover the $8,868.29 mortgage with my salary. I also don't know insurance and tax costs. The loans are secured by the property value. Let's say option A's true value is $120,000 and option B's value is $1,450,00 for sake of securing a loan at 80-90% of the property's value. The loan would include closing costs, ect because I have a great lender (again, all speculative).

To my knowledge, I have great credit. I've spent the last 3 years building my credit. I have successfully managed credit cards and two loans (for a car and computer).

My cash flow is the real problem because it doesn't support much more than a $100,000 loan. So my question is, if my funding is supported by current income from the property, would the amount of the loan matter?

To anwer the statement about having no rental experience: I would be building off the experience of others. I would use the experience of my mother (who managed a 243 unit property for 5 years) and the experiences of others here to help build my ability to manage a property.

I realize that isn't my personal experience but I believe that success leaves footprints and I would be using your footprints especially to create my own success.

Here's my question: If I am investing in a rental property with good numbers (based on math from reading posts about being a landlord using the 50% rule, ect), what is the difference between securing a good property worth $1 Million versus $100,000?

If the cash flow is good and the loan is secured based on property value, would I have trouble getting a million dollar loan over a $100,000 one?

My financial background is not good right now (no assets currently) but not bad either. I just recently learned the importance of a balance sheet so I've worked it out for myself. I have some liabilities that will be paid off in the next month or two and at that point I will have no debt or assets either.

My cash flow is based off of my job that wouldn’t support a million dollar property but I’m securing it with property value and current renters. I’m confused if I would run into funding issues. I want to build assets and passive income and personally, if the numbers are good the overall value doesn’t influence me.

Thank you for your time and help.