All Forum Posts by: Lawrence Paul

Thanks for all of the feedback, everyone!

Hello again,

Curious if this tenant seems reasonable to you:

Rental on property is 1245/mo with tenant paying electric and gas.

Tenant makes 18/hr with a 11 month old baby, who's mother will watch when she is at work.

Husband currently lives in Florida (where they used to reside) and works a maintenance job and is trying to transition back to Pennsylvania.

Have not ran the background or credit checks yet.

Have had 7 walk throughs and this lady is the first to submit a formal application.

Trying to get the unit rented by 05/01 so I have zero vacancy, which is 11 days away.

This is my first rental, so any additional input would be neat.

Thanks!

That is what I love the most about REI.

A pure numbers game and math does not lie!

Thanks for the information.

I am personally in the Montgomery County area and feel locked into this area until I am ready to expand.

Anyone else from Montgomery County?

If I was to cash out refi at 20% (BRRRR), I would be generating an honest $100/mo including vacancy/repair/cap ex/ect.

Right around 16-18% Cash on cash.

Double thread?

Regardless...congratulations and best of luck!

Garrett,

I am in a similar situation, but no FHA, just PMI on a 5% down deposit.

Recently purchased my first rental (1060 square feet) and plan on turning my current residence into a rental once my small family outgrows the 1060 square feet (If we ever do).

My residence and rental are identical.

I was personally thinking of picking up a second rental before even considering paying off my primary residence's PMI...but I am not 100% sure if the numbers could agree with me or not?

That way, if we did want to move, I can still pick up a fourth mortgage without jumping through the 5-10 rule.

Food for thought.

Welcome, brother.

I am also looking to start slow and scale in a fiscally responsible manner with little risk and maximum potential.

Best of luck!

The property currently has about a $60,000 mortgage with a property value of around $130-135,000 (conservatively).

I was thinking of doing a cash out refinance from a residential to a commercial so I could start a LLC.

Could also just wait and do my second property as a commercial and start my LLC with the second one and eventually move the first property over.

Business's appear to have better loans than personal loans and better tax benefits than sole proprietor, which is the main reason why I am entertaining the idea of starting a LLC.

Can I hire myself in a S Corp as a property manager and pay myself 10% of the rental? Is that a reasonable salary?