All Forum Posts by: Gabe G.

Mike that's about right.

Obviously we are taking consideration into the depreciation that allows limited tax liability, but eventually they will have to be sold, and you will owe taxes on the difference between your depreciated value and selling price , no?

But that gives me a reasonable idea. I was thinking 10 would do it for me.

A stupid question, but how many SFH rentals, do you think you would need to confidently quit your day job? I live in the Midwest, so an avg/decent income is 50k a year.

I have 2 currently, that gross cash flow, 500 a piece, after mortgage,taxes, and insurance. Obviously that doesn't take into consideration vacancies and repairs.

Interested to hear thoughts

Anybody else, when using financing to buy a rental property, usually HUD/VA etc, find their lenders appraisers will only appraise the property no matter what the market/comps say, for right around the selling price?

Considering the expense of appraisals it would be nice to have an accurate appraisal done.

For example a house I just bought appraised at 48 per sq ft, when comps were into the 70 to 80k sq ft range.

There are some minor things that are needed.

But just find it weird that apprasiers do this now

Cuong,

You are right, with the 50 percent rule. My numbers were for gross cash flow.

I understand the 50 percent rule, but also understand that it includes approximately 10 percent for management fee, I will be self managing and also understand a lot of that is vacancies/turnover and plan to limit that as much as possible. I understand the 50 percent rule. But my question is if the 50 percent rule could not be lowered somewhat by (self managing etc) why would we invest in rentals? Because that would mean even good deals only bring a net cash flow of 100 a month or so, you would need 50 rentals, just to make a decent living. I believe my rental next year(because I was able to lower property taxes) should gross cash flow closer to 500 a month, and am looking for the same on my new one.

Keep the tips coming.

Love this forum

Thanks guys. I do not have a property manager. I just can't afford the 10+ percent out the door, I would rather me do it at this point and that 10 percent go into potential repairs etc. I purchased the 2 bedroom 1bath property built in 1957 for 58k, its all brick. I put about 5k in rehab. It needs more, but its rentable at this point. It appraised for 84k. I bought the 3 bedroom place, for 82k. Its in good condition built in 1970. I expect to put about 3k or so in this one to get it rentable(hoping) max 5k. Comparable are in the 120k area. It last sold for 113k in 2003.

I also am trying to buy properties where I have a little initial equity, say 80 percent of market value. As I think this is extremely important part. Considering the risks in renting and buying unknown properties, you have to buy the property right.

Good to hear another indy person on here!

Keep the tips coming!

Just joined the forum. I currently have one rental property. 2 bedroom/1 bath in Indiana. Rent for 850 a month, brings in about 400 dollars a month in cash flow. I just bought a second property, 3 bedroom/2 bath. on a different side of town. I am hoping to rent this one for about 1050 a month, for about 500 dollars in cash flow a month. I put 25 percent down and get 30 yr mortgages. Property insurance is between 800-900 a year. I try to buy houses I would actually want to live in, in decent neighborhoods that are close to the major interstates. Any tips for the beginner? Anything you see wrong with the above? Biggest problem so far has been getting financing for non owner occupied properties.

Any help or comments are appreciated

Thank you