All Forum Posts by: Eric Barber

Im in the same boat. After using turbotax forever, its getting complicated.

Greetings. Always used turbotax in the past but now looking for CPA/EA suggestions as I have purchased a rental last year and will be adding another this year. Im in the Uptown/Galleria area. Looking for someone that provides advice in addition to filing. Thanks.

Originally posted by @Gary Floring:

Originally posted by @Eric Barber:

I am looking at a brand new house in the 140-150k range that will bring in about 1200-1300 per month in rent.

I have about 60k to invest. Should I put it all down to pay it off quicker so I can move on to my second house investment after paying off the first or should I just put 20% down and purchase another house similar to the first with 20% down as well. I am 42 and looking to pay it off with a 10 year mortgage. My thinking is to put the 60k down and finance 80k on a 10 year mortgage which will definitely have positive flow coming in. I guess I like the idea more of a house that is paid off generating revenue than 2 houses generating less revenue. Hope this makes sense. Thoughts please.

 Eric, I have a similar situation and would be curious as to what your final decision is in your case. How about this one.....

Scenario 1: An investor owns a rental property that has 80% equity (increasing rapidly due to 15 year mortgage) and nice positive cash flow. 

Scenario 2: An investor owns two rental properties like the one above, but with only 40% equity in each (increasing slowly due to 30 year mortgages), and is currently barely breaking even.  

Which is the better situation for the long term? Pros and cons of each scenario? Anyone??

I am 90% going with the option of Scenario 1. Its a brand new construction house in a good area of town. I will go view its progress this weekend. I will also be putting extra money toward the principle and can pay the house off in 3-5 years. I have 60k to invest and can't just let it sit in the bank. 

I am looking at a brand new house in the 140-150k range that will bring in about 1200-1300 per month in rent.

I have about 60k to invest. Should I put it all down to pay it off quicker so I can move on to my second house investment after paying off the first or should I just put 20% down and purchase another house similar to the first with 20% down as well. I am 42 and looking to pay it off with a 10 year mortgage. My thinking is to put the 60k down and finance 80k on a 10 year mortgage which will definitely have positive flow coming in. I guess I like the idea more of a house that is paid off generating revenue than 2 houses generating less revenue. Hope this makes sense. Thoughts please.