All Forum Posts by: Michael Balaska

I would like to buy my first rental property and I am looking at turnkey rentals. I currently work full time with a good salary and benefits so I don't plan to quit my job at this point. My goal is to start building passive income and hope to retire sooner and long term goal to develop generational wealth. I can use another 10k to get started more comfortably. My question is, do I continue to save which may take another year or take out a HELOC which would be a fixed 3.115 5year or a fixed 3.865 10 year?

@Joe Villeneuve

Thank you again, you’re definitely helping me to have a better understanding. I guess my thought process was to get the property paid off sooner with a 15 year so the cash flow would increase and I would be much younger. However I understand what you’re saying and it gives me the confidence to buy. I just needed to reassurance that it was ok financially to do that.

Last question, what do you consider worth while when looking at CF? I have found several properties I am looking at for my first investment which would give me $200-$300+ in CF with a 30 year mortgage. Would you consider that worth it?

Thanks for the reply Joe, so cash flow is what I should be using to evaluate the deal correct? 

I thought I would want a 15 year mortgage so it would be paid off sooner. Is it reasonable or beneficial to do a 30 year as long as it produces CF?

I am just starting to get into investing. My background is medical, so I am learning everything I can to get started. I have been reading and watching the videos on the website.  I have been looking at properties that I would like to buy and rent and then running the analysis. My question is... what specific part of the analysis should I be focusing on to determine if it’s a good deal. I have been focusing on cash flow and it seems the majority have been coming out around -$200 which would tell me that is not a good deal. This is with a 15 year fix mortgage. If I change it to 30 year and changes to a positive cash flow but I would think a 30 year would be to long for investing. Any advice would be appreciated. I apologize for my ignorance.