All Forum Posts by: Harry Aiken

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I like it bill. Thanks for your input!

If My goal is to reinvest all rent paid back into mortgage; in addition to my w2 wages, how important is cash flow? At 75% LTV and piti payments not exceeding $2500/mo, i'd think rest of rent cash can be put into a holding account till i have enough for full payment. My w2 can cover the piti payments alone. Is this a sensible approach to quick ownership for possible refi or sale property to leverage into $1 mill +?

I want to save 20%-25% down payment for a 600k 4 plex. I plan on it living in it and paying 80% of my w2 wages towards the mortgage. Assuming this 4 plex can generate 48-60k gross income per year, this could mean 70-100k/year pay down on the loan. Id like to pay it off as quickly as possible so i may sell it or refi the property to jump into 2 million plus. Scaling up. Is this worth pursuing? I helped run my fathers trailer park of 30 homes. Taking Rent, screening tenants, lawn care, did a lot of remodeling. I'll use the rent money to cover mortgage, insurance, property Taxes, all other expenses. Cash flow will go into an expense/savings account until the property can be paid in full. What am i missing? 

  Looking to learn and get a solid investment here in anc. I've been to your site and seen the clips youve posted. I will not be able to pursue rei full time so ill need some guidance from someone such as your self. I'll be in touch!

"But in my math $100/mo is going towards paying off the loan. So I just about tripled your return, but not your cash on cash."

Can you explain bill? Thanks.

added. Thank you guys. Learning to play with numbers to help find the deals i like. Maybe another year before I have cash I need. Learning phase.

Yeah. I haven't any money into it. I've just started listening and reading biggerpockets guides and podcast. Purely hypothetical. Actually, alot of real estate here is as described aboved. Terrible. Negative most times. Just making sure what im seeing is correct. Thank you guys.

Condo: 100k. With a 20% downpayment of 20k. Ill have a loan for 80k. Closing cost of $3000

Cash invested: $23,000

Rent: $1500/mo or $18,000 year

Mortgage $500/mo. Or $6000/year.

Vacancy rate at 5%. $900/year. 

HOA fees are 300/month. $3600/year

Property taxes are 1500/year. Insurance of 100/month. $1200/year.

Repairs of $150/month. $2000/year.

Capital expenditures: $100/month $1200/yr

Property management: 6% or $90/mo or $1080/yr.

CAP rate: $18,000-$900 (Vacancy rate)-$3600 (hoa fees)-1500 (property tax)-$1200 (Insurance)-$2000 (Repairs)-$1200 (capex)-$1080= $6520. Or

$6520÷100,000= 6.5% cap rate.

Return on Investment

Rent: 1500

Mortgage: 500

vacancy: $75

Hoa: $300

Property tax: $125

Insurance: $100

Repairs: $150

Capex: $100

Property management: $90

Cash flow: $60/mo

$60 x 12=$720 cash flow per year.

Cash on cash= $720/$23000 or 3.1%. Or just keeping up with inflation. Does this look right?