All Forum Posts by: Don Ferniz Tyree

This is a how would you handle this situation type of question.

The house is : 130,000

Mortgage is: $800

Just based off the info provided, How would you rent out the house. what steps would you take to start planning this as a cashflow machine? Lets say its in a great location within a 2 mile radius of malls, freeways, and a community college. 

Part 2 question: Lets say I do a FHA loan and required to put 3.5% down so now I'm required to live in the house. Would you rent out the 2 additional rooms then after a year move out and have someone else move in? is that a good idea? This could be my potential situation on a property because I dont have 20% for a regular loan. What do you think about this idea?

Thank you for your response Kevin. There are a few areas that I know of so I will do just that. Thanks alot!

Hello everyone!

First time poster here. I have recently got into Real Estate investing and just finding way to make income. I've been reading some books about being a landlord, renting etc. I have decided to make the move since i truely feel motivated in doing this. I have been speaking with a real estate agent and a Loan Officer and the loan officer gave me some numbers based on the info I gave him. He had mentioned that I qualify for a home anywhere from $120,000 to $150,000 tops. So before I begin, he had mentioned that this was worst case scenario meaning these numbers would be at the worst based on what I provided him. If I purchase a home for $120,000, He had gave me this info.

Based on $120,000 Home Loan (Worst Case Scenario)

Principle & Interest Payment: $613

Prop Taxes & Insurance: $187

Mortgage Insurance: $93___________

Total Monthly Payment of $893

Based on $150,000 Home Loan (Worst Case Scenario)

Principle & Interest Payment: $755

Prop Taxes & Insurance: $220

Mortgage Insurance: $115___________

Total Monthly Payment of $1090

Again this is a close ball park estimate based on the info I have gave him. I did not want them to pull a hard credit check yet because I plan to purchase this house next year or any suggestions on the best time to purchase a home is always welcome. 

So I plan to buy a home here in Overland Park, KS/ Kansas City, MO/ or Lawrence, KS area. I am looking near a college campus that way I can rent out to students or near a reputal area and there are some 3 bedrooms that I can buy in that $120-150k range. 

My question is this. Based on these numbers of mortgage payment, How much would you charge for rent in order to have the mortgage covered by the renters, property tax, emergency expense and some profit? for both the $120 and $150k range houses?

-Any suggestions or tips on how I can make this happen is always welcome. My long term goal is to own multiple houses/rental property in a few states and also in other countries. After the mortgage is fully paid by the renters, I may continue to rent out the home or if the price is right, sell it and use that toward a duplex and rent that out. I have plenty of options there but let me know what you guys think. I really appreciate it guys. I can not find a mentor or anyone else doing this that I know at least so I feel, I can get my answer from you guys. Please post any tips, suggestions, advice and all of the above! Any knowledge you can throw my way is highly appreciated! Let me know if you have other questions regarding my question. I will be happy to answer! Thank you all for your time.

-James Don