All Forum Posts by: John McCardell

We all hear all of the investors who made out in the 2008 housing crisis.

If this were to happen again I want to be ready to strike.

I currently have a HELOC and some cash saved for some turnkey rental properties. I could probably get 1 and at most 2 houses due to needing the 20% down for a rental investment purchase.

If this were to happen again I want more than 1 or 2 properties. What can I do now to be prepared to purchase 10 or maybe 15 properties?

The first deal is renting out the university house. After I’m finished with that I will rent out my primary residence. I should have been more clear. 

Hi all!  

Very excited to get started here and hope I am not pulling the trigger too fast.  This is my plan.

Luckily I bought my primary residence 3 years ago for $335,000 and I owe $306,000.  It is currently worth $450,000 since I moved into a developing neighborhood in Philadelphia.  My mortgage is $1700/month and my realtor is telling me I can rent my home easy for $2500/month.  It was brand new construction 3 years ago - very little maintenance.

I applied for a HELOC loan and still waiting for this to finalize. I should have access to $100k when all is said and done.

I was going to rent my primary home until I found an investment property that currently has renters near a major university.  This home is 2500 sq ft and totally renovated with renters paying $2500/month currently until July 2020!  I believe it will always be occupied since it is 3 blocks from a major university.  Also students can use student loans to pay for rent - the student loan bubble could benefit me here..

They are selling the home for $309,000. I am going to put 20% down from my HELOC to avoid PMI. Also closing costs are around $15,000 or 5%. I am of course going to try to get this property for lower hopefully $295k-$300k. Also will try to negotiate the closing costs with the seller. It appears they are aggressively trying to unload this property.

Home = $309,000

HELOC = $61,800 Balance (assume 4%)

$2472/year in interest or $206/moth

Mortgage Loan = $247,200 (assume 4.5% because it's a rental)

30 Year mortgage pmt = $1253

Closing Costs = $15,000

Property Taxes = $3,800/year

Rental Income = $2500 x 12 = $30,000

Monthly Income = $2500

HELOC Interest = ($206)

Mortgage PMT = ($1253)

Property Tax = ($316)

Landlord Insurance = $2500? (i have no idea) or ($208)

Positive Monthly Cash Flow of $517

Would love to hear some feedback on my calculations or where I am going wrong on this.  Open house is on Saturday and hope to have my pre-approval letter ready and could be making an offer.  Any advice/recommendations are greatly appreciated!!!

If all said and done I would rent my primary residence now for $2500 (current mortgage and taxes insurance) is $1700

Positive Cash flow of $800 already

Will buy a new primary residence and rent out current.

Does this sound like a wise strategy as well?

Hello,

My wife and I are 31 and just had our first child. Would like to secure our future with some investment properties.

I have zero debt

25,000 in cash

I bought our home and owe 297,000 and it is worth 415,000

my credit score is 750+

We bought in a gentrifying area of Philadelphia and hit a home run by being early. Want to turn this into a grand slam. Would like to purchase a rental single family home for about 150K.

What is my best way to secure financing? Thank you.