All Forum Posts by: Ira McKey

fair points and thank for for responding. My concern with multi unit properties is the quality of tenant, that and cash flow on any properties in our area is very hard to come by. I need to go 2 hours south of where we live to find multi units that produce cash flow, with 20% down. The only reason I think it works for our existing house is we leave 150k in equity and keep the piti lower.

What I’m hearing is $400 positive is likely at best a break even. I also hear you that buying a nicer primary home isn’t real conducive to the long term plans.

I’ve been calculating 10% vacancy rate and understand I have maintence on two homes if I go that route.

I figured the 1600+2400 payments was still under a 33% dti, we don’t have much other debt to consider.

I have also considered doing the same thing but selling our existing home when we find another and not doing a rental now, it’s just the positive cash flow is not something I’ve been able to find in our market so I thought that may make it worth doing.

Thanks again all good data to consider.

My wife and I find ourselves in a position that we have a home valued at 400k.

With an outstanding mortgage of 145k

Currently my wife’s parents are on the loan but have no interest in the equity.

We are considering a cash out refi and using 100k to put down on another home in the future and then renting this home out.  Our current home would rent for 2k and our piti would be 1600ish.

I know we may have to live here a year or so after the refi before we could turn it into a rental which is ok, we’re not in a rush.

New home would be an upgrade likely in the 500k range with 100k down. I currently gross a bit under 150k.

What issues should we be on the lookout for with this goal in mind? What should concern us?

One day I’d like 10 or so properties this one being potive cashflow seems like it may be a good start.

Thanks,