All Forum Posts by: James McGuire

Hi 

We are looking at purchasing our 2nd rehab to rent investment property of a 2Br/1Ba townhouse. We are using traditional financing 30 fixed with 25% down. The home is being priced at 150 and we expect to get 1350 in rent. This one will need an estimated 15k to remodel and fix a leak/mold issue. My question is when calculating the monthly free cash flow (rent minus expenses (Taxes, HOA, Ins, Maint and Rent Vacancy) how do I factor in the cost of the initial remodel expense? I don't think I should add it to the cost of the house since I am not financing the repairs but coming out of pocket for them. Should I divide the 15k into monthly payments but if so for how long? I hope this question makes sense.

Hi Newbie here We just bought our first investment property in the neighborhood where we live. It was a Fannie Mae owned 2 Bd 1 Ba condo which we currently have rented out. When we bought the place It had brand new carpeting and paint (probably the cheapest they could find) my question is how often should I expect to have to repaint and put in new carpeting and when I do should I follow Fannie's example and go for the cheapest as well?