All Forum Posts by: Emily Sulliban

I've been reading on the 50% rule for calculating viability on a potential rental income property:
Gross monthly rent
-(minus)50% for operating expenses
______________________________(equals)
NOI(Net Operating Income)
-(minus)mortgage payment
______________________________(equals)
Cash flow (positive or negative)

My question is: Does the 50% rule ever become.. the 65% rule? Or is the 50% rule an actual rule and it's safe to assume that operating expenses will always stay at 50% or less?

Are there any landlords that can tell me all of their actual operating expenses (other than loan/mortgage payments)? I understand utilities, taxes, and landlord insurance.. the solid monthly fees that I know will come every month. The other fees, such as maintenance, legal fees, and eviction costs don't seem like solid monthly expenses... does the 50% rule account for these fees that will eventually pop up, but at an incalculable point in time?

Thanks,
Emily

Thank you Charles(:

Thanks Steve and Mitch.
Out of curiousity, I just filled out an application with FHA to see if I prequalify for anything.
This site is great. More answers/suggestions/comments are more than welcome.
-Emily

Before I ask my question, I'll give you some background info. I'm 20 and have no credit history. All I have are a few bills in my name that have never been paid late. I don't owe any banks or anyone money. I'm starting college in a month. I have and have had a steady job, but it's part time.
I'm interested in looking for a 2-3 family property in which I could occupy one unit and rent out the other(s). I wouldn't have a considerable downpayment.
I'm wondering if there is any possible way for me to acquire a 100% loan on a property such as the one I described in my situation. If I found the right deal, got the contract, found tenants, and did some relatively inexpensive fixes to raise appraisal would a bank still just laugh at me? There are no hard money lenders who adjust interest rates to accomodate more long-term investments?

Any input is helpful.
-Emily

That's bizarre. You'd think if those people could devise a plan to "squat" and steal utilities for as long as they did that they'd be smart enough to get a job or a place that was legally their own. Poor kids.

Thanks Rian and Marc!
Right now, I'm pretty much interested in and researching all types of investing haha. Soon enough I'll be at a point where I'll realize which types are most realistic for me with my current financial situation and I'll concentrate more on those categories. I still have a bit to go before then though, and all knowledge is valuable:)

I do find rehab investing to be cool though. I like building and designing, and I talk to contractors regularly at my work, so it'd be cool to work with some of them and learn more about building and DIY. It also seems as though there's room for relatively significant profit if you plan well:)

Thanks for sharing this valuable info Justin, and thanks Joshua for basically putting it right in front of my face:) This is exactly the type of stuff I'm looking for, and frankly, I don't really know how people invest their money without knowing exactly what will be happening with it.
Great article:)

Thanks Jane:)

Hey everyone.
My name is Emily. I live in Massachusetts. I'm 20. I'm overly-ambitious, and when I set my mind to something there's no turning back- no matter the amount of work that lies in front of me. I suspect most of us here are alike in that aspect.

I'm starting college this year and majoring in architecture. I work at a home improvement store. Though this isn't exactly relevant, I'm also in the process of setting up an informative website and hopefully forum for freshwater aquarium hobbysists.

Everything about building and design interests me. Everything about business interests me. Everything about the real estate market intimidates me!

It seems there is no real "first topic" to learn or "first question" to ask when learning about real estate investing. Whenever I read an article, I end up with 10 questions that need to be answered in order to fully grasp what I have just read, and each question leads to ten more questions that need to be answered in order to properly answer one of the questions in the first set of 10 questions........ etcetera. Basically, I'm overwhelmed with all there is to learn about investing and the real estate market in general!

I joined this site with the hopes of slowly accumulating enough knowledge over time from experienced investors to be comfortable enough in what I've learned to one day go out and make a smart first investment.

Nice to meet everyone:)
-Emily