All Forum Posts by: Byran Parson

I got a 10 year loan from a local bank for my last rental.  Are 15 year loans a common thing?  

@Lauren R. It's turnkey, yes. ARV is right around 45, yes.

Tenant will pay all utilities.  That shouldn't be a problem.  Everything within the house (appliances, floors, walls, roof, heating, etc) is in decent shape, nothing glaring that needs immediate attention.  Neighborhood is decent.  Its a lower income area but it's not a ghetto.   I figured you'd say bad deal because 200/month cash flow is well below the 50% rule...your thoughts on that?

45k purchase price. 3br 1 bath SFH. 10k down. 35k borrowed. 10 yrs at 5%. Monthly princ and interest payments of 375. Taxes and insurance 100 a month. 475 total piti. 675 rent. 200 cash flow.

Here's my issue with cash flow:

I can buy a decent rental SFH for 45k. You can usually get 650 rents for these places. Property taxes are around 85 a month, with insurance aroun 35 a month. In order to cash flow 50%, I need to put 17k down on the property. Not including closing costs. So I probably need 20k, total, to cash flow 50%.

Ugh!

My wife and I own two rental properties that will be paid off in 4 years.  I cashed flowed around 50% and 10% on the other.  I didn't follow the 10% rule on the one rental because of a particular situation so I've paid a little out of pocket for operating expenses.  All that said, I want to follow the 50% as much as possible.

In 4 years, when I'm 39 years old, I'm estimating that my wife and I will have around 30k per year to invest.  That's probably chump change for some of you but I'm excited about it.  

I can buy a nice single family rental home or half-duplex for 40-50k in our town.  Full duplexes are hard to get, but they go in the 60-80 range.  

I can theoretically buy two rentals per year.  Is it better to buy two rentals in a year or buy one rental with a larger down payment?  The other consideration is, will banks/people lend me that much money?  I know banks will give me trouble with that, I think.  I don't have any consumer debt.  No car debt, no consumer loan debt, no college debt.  I have my mortgage of $500 but that's it.  

My goal is to have between 10 and 20 rentals in my 40's so I can do well when I'm in my 50's.