All Forum Posts by: Michael L.

Doesn’t look that good. You don’t have any capx counted in the deal. If you include that the cash flow will be negative. I’m in Orlando and a Realtor if you want to connect. 

If this is a great location and you feel a good vibe for this neighborhood, good school, shops, restaurants and people are moving into the area. The condition of the house is pretty new and being maintained properly, I'm okay with that cashflow. 

If this is a class B/C neighborhood, 20-30 year house and barely maintained or upgraded, I wouldn't buy. Anything breaks would easily wipe out your entire year or two profit. 

My first instinctual thoughts are that this deal is more appreciation focused than cash flow-focused. If you are someone who is relying on cash flow for their investment I will continue to look for other deals. Imagine if one of your metrics is slightly off (such as the vacancy rate) - you'd either be breaking even or losing money on the deal. On the other hand, if you truly have done your research in this area to support the longevity of this investment and you plan to own it for 5+ years I could see the appreciation alone making sense to go forward with it. 

@Michael L.

I do not believe You would qualify for a 3.5% loan.

Also I would never recommend anyone be that leveraged on multiple properties, especially in a down market. Risk is absurdly high if you do not have significant reserves

The simple answer is Yes, you should be able to move out and rent that property. However, any underwriter would probably want you to answer some questions before approving you with another loan:

- What is your current Debt to Income ratio

- How long have you lived in your current home

- Can the rent pay for the mortgage 

- Are you planning on self managing or employing a Property Manager 

- Do you have enough money in reserves 

These are just some questions you would be asked if attempting to get another loan.