All Forum Posts by: Min Kim

@Joe Villeneuve

You asked if I have zero DP and positive cash flow, how much did the property cost me. I only put $6k into the home because of upgrades so technically, $6k. So my numbers should go off that and the annual income?

@Joe Villeneuve

Yeah, this kind of stumped me too. I thought Cash on Cash ROI was based off how much you put into the home, annual income, and the cost of the home?

I think I understand it. The reason why the number works for my WA home is because the rent is pretty high. If I had put it down a couple of hundred, it definitely wouldn’t cash flow because of the price of the home (mortgage payment)

Ok, turns out there’s more to it than that. I sort of learned how to do the 4 squares from one of Brandon’s video, if the numbers work then, I should be good?

I really appreciate everyone’s advice/input.

With the ability to use the VA zero down on homes, is it almost a guarantee to always get 10%+ cash on cash ROI? Is there something I'm missing?

I saw a video somewhere that said a low down payment can actually be a bad thing? Can someone explain how/why?

Thanks!

@Derek Tellier

I'm new to REI and never gone to a meet up before. Is there anything I have to bring?

@Derek Tellier

Hey sir, is this still going on? If so, what time is the event?

@Tyler Gibson

I’m not paying myself as well. The extra money I make from that home was going to an account to build for a down payment.

My goal is to not work a 9-5 til I’m old and brittle too.

@Jaysen Medhurst

Vital information, I really appreciate your time sir!

@Tyler Gibson

Appreciate you explaining that to me. Cash flow of $1097 (about $90 a month) looks more realistic. Again, the reason I didn’t factor in the other “percentages” such as maintenance, vacancy, etc, is because the home is not even 3 years old and have some cash reserves. With the intention of raising it to $10k once I pay off some other debts.

A question with putting away percentages, do you keep putting them away as reserves or do you stop at a certain point and resume it again once you dip into them? This is why I stopped and plan on resuming it once I dip into the reserves.

I completely understand this home isn't a cash cow, but it has struck my interest in REI. I don't mind the small cash flow from this one, but in 20 years, it'll pay off. I have another home in TN that I currently live in and hope to do the same once I PCS here. Starting to think it's not a good idea?

My sights now are to getting into Duplexes.