All Forum Posts by: KB Bergeron

You are 2 steps ahead of me Nationwide! The negative cashflow is due to me paying too much for the property. I have a fixed rate, biweekly, 30yr loan.

I guess I was thinking that I could add money to this negative and turn it into a positive by paying them off.... oh well!

Nationwide,
You are exactly right, I don't have "true cashflow". That said, what would your advice be for the future?? What should I do about the 2 neg cashflow rentals I have....if anything?

One more thing: Since the military keeps me on the go, I'm moving to another state and will buy another home to live in and this home will eventually become a rental. Any advice?

David,
Thanks for shedding light and giving me a different way to look at this!

You are saying that the $$ I'm employing are gonna be the same....regardless of where I direct it, but would net me more of a benefit long term to reinvest in more rentals instead of paying down the loan. Ok, what about this: Since my main concern is neg cashflow on these rentals, would it make sense to pay these down for a year or so to build equity....then refi for the balance in order to lower the monthly payment...which then should change my status to positive cashflow! Does this make REI cents??

I understand Anson, thx..... Cash is flowing on these 2 rentals, but it's not into me! I guess that is the main reason i want to pay them off... paying them off will basically ease the pain.(can payoff both in less than 5yrs) The cashflow currently covers the mortgage payments (P&I) but nothing else. I initially purchased one of the rentals as an owner occupied at what it was worth in '03. The second rental was purchased as a rental after reading RichDad/Poor Dad, it wasn't a "good deal" I just wanted to get in the game. I didn't search enough to find detailed info about how to do it, and i was sooo excited...i just took action and didn't buy it cashflowing from the start. I was told "don't wait to buy realestate....buy realestate and wait....even if you didn't do a good job on the purchase. Maybe that wasn't the best advice. :-)

Thanks for your quick response Nationwide! I know I have lots to learn, but is paying off a rental something I would "ever" focus on? Meaning applying both principles: Aquiring more and more properties, but pay off the older ones .....to help pay for the newer ones. Is that possible....does this make good realestate investing cents??

Greetings Everyone!
My name is KB and I am currently serving in the military. I have 2 rentals (one I previously lived in and converted into a rental, and the other purchased as a rental) Question: Does it make sense to put forth as much $$ as possible toward the two rentals...in order to pay them off within the 6yrs of active military service I have remaining....to more effectively (recieve 100% rental income from both rentals) supplement my retirement?? Or should I concentrate on building my portfolio by trying to accumulate more properties. (by saving up for down payment, or by rerfinancing). Your experienced opinions are greatly appreciated. Thanks in advance for your help! :D