All Forum Posts by: Cole Farrell

@Tommy Cangelosi Yes, I am trying to scale the business. That does make sense. However would it be better to pay off the mortgage quickly in effort eliminate the mortgage payment for increased cash flow, or leave it as you’re saying with regular payments and save extra for new deals. For example if I was receiving 500 dollars a month in cash flow with a 500 mortgage, is it better to eliminate the mortgage to have 1000 cashflow or to continue the 500/500 and buy another property sooner?

Is it better to take positive cashflow and pay down the mortgage (in effort to eliminate) or save the money for a potential next deal?

@Diana Muresan That’s brilliant, I didnt know you could do that. That could help me a lot...

And I’m currently looking into FreddieMac, I have not heard of them either but I’m going to give them a call. Thank you very much.

@Diana Muresan What is “Freddie”? Also what is seller concession?

@Jon Duperron Understood, thank you

@Jon Duperron You’re right that’s really smart. Is it a bad idea to pay yourself in your opinion? I do plan on managing it myself but I think I would rather have the higher cash flow and keep myself out of it.

@Jaysen Medhurst I understand, I see what you’re saying now. I suppose with all that included it is much much lower. I will manage the property myself so I can save that which is nice. Thank you so much for teaching me and helping me with this. And that’s a great idea, I think I could raise rents a bit to raise cashflow.

@Jaysen Medhurst All utilities are tenant paid. The only expense I have is insurance at 86$, new quote as of today, and a landlord meter for the electricity at 21$ a month. Taxes and insurance added 266 and 443 respectively, I should have all expenses to be $805. I’m confused where you have these numbers from.

@Jaysen Medhurst Nope that’s all good. So my numbers go as follows.

Rent. 1410 mo

Taxes 266 mo

Insurance 75 mo

Mortgage 443 mo

Electric 21 mo (landlord meter only)

Total 605 mo

That’s without saving % factored of course, so I plan to build up some cash as a cushion first then save a % on a monthly basis from rent.

Purchase 82000

Mortgage is 61500

Down payment 20500

Worth 100000

Equity 38500

@Jaysen Medhurst