All Forum Posts by: Mike Austin

Lol. Calling Rich Dad a financial literacy book is being really generous. That book is an insanely popular motivational pamphlet and not much more. I still can't believe every single podcast guest credits this book as being the best real estate book and what changed their lives...

@John Leavelle Super helpful! Thanks so much for clarifying!

I guess I'm trying to figure out how people are ending up with positive cash flow after all expenses and a large increase in debt service. I'm going to have to go find some examples with concrete numbers to see how this is feasible. I understand the value of cash, but is it worth possible negative cash flow?

I have a newbie question on the BRRRR strategy. If someone was attempting to refinance, wouldn't their monthly mortgage payment end up a lot higher after refinance? How does this affect the property's cash flow?

I'm looking at a warranty myself because it's included with my purchase. The one thing to keep in mind is that the deductibles are 75-125$ per claim on top of the 5-700$ for the policy. That could add up pretty quick.

@RJ Jackson I would recommend paying 9$ for the biggerpockets plus and using the rental property calculator. It will prompt you for a large number of items you probably aren't considering. It will help you to better understand your deal if you use it to cover different scenarios. I hope to close on my first multi-family in Austin in a few weeks and that tool has been invaluable. It also helps you account for potential return from appreciation over time. Best of luck!

I just wanted to say this is a great tip. Thanks, Eric!

Thanks, @Jacob Pereira! I'll keep you posted! I expect to close on my first property in a couple of weeks so I'll be signing up then. 

Apologies for something off-topic, but is there a bigger pockets meetup for landlords in Austin? I feel like there should be since this is such a meetup friendly town.

I hope nobody minds but I'm going to ask a basic question here regarding rental income and how it contributes to DTI. When a lender takes a property's cash flow into account are they accounting for all debt/expenses or is it taken as gross income?

Hey @Shawn C.! I think I'm going to go through with signing up for a year and see what the benefits look like. I feel like the access to standard TAA leases is worth it for 195$/yearly.