All Forum Posts by: Candace Ellison

I have always been one to pay off my credit card each month, so this may be a stupid question, but if you carry a balance on your card even though you are making the minimum payments will it negatively impact your credit score? We are considering using a no interest for 12 mo card to do rehab and pay it off when we refi.

@Sam Wydner

Ok, what is the assessed value that you pay the 1.9% on?  I'm trying to figure out what you actually pay for taxes because in your numbers above its just literally adding $1.90 monthly expense for taxes.  If you had not done this already you can go to the county tax website to see how much taxes will be.  Sometimes sites like zillow or redfin have the tax history too.

Obviously the maintenance and capex depends on a lot, like the market, condition of property, etc.  If you have any big expenses coming up that you know about, for example the inspector determined the roof will need to be replaced soon then you can start saving specifically for those.  To use very generic numbers for analysis you could do 5% for each.  Same with vacancy, it depends, but a lot of people use 8.3% because thats 1 month out of every year.  With 10% for maintenance/capex, 8.3% vacancy, and $2755/yr taxes (assuming the assessed value is same as you paid 145k) it looks like this will be negative cash flow.