All Forum Posts by: Min Kim

@Jaysen Medhurst

Correct, the mortgage is including taxes and insurance. The renters are responsible for utilities. As far as lawn care or snow removal, is that something that the owner for the home is suppose to take care of?

I’m assuming my thought process is flawed then? I already set aside $5k for those reason (maintenance, vacancy, etc) and plan to raise it to $10k next year once I pay off certain debts. I understand the reason for the percentage you set aside for maintenance or vacancy, but wouldn’t you stop putting money into that after a certain point and resume after you had to dip in those funds? Again, the reason I did this is because the home is not even 3 years old and the chances of something breaking are slim, not 100%, but slim.

This home was bought with the intentions of staying for a longer term but I got orders to TN. We didn’t want to do a rush sell and was fortunate to get renters at a reasonable rent. So according to the numbers and your suggestion, is to sell and get a MFH? My plan was to get keep this house and get enough money for a down payment for a duplex for my next “investment”, but now I may need to rethink this....

@Tyler Gibson

What numbers specifically? I’m still rather new to this, but eager to learn and get better!

$336k was the purchase price and $386 is the monthly net after mortgage and PM fee.

@Jaysen Medhurst

That makes a lot of sense, appreciate that insight.

Yeah, I am leaving some numbers out and maybe that’s a bad way of thinking? Please correct me if I’m wrong and if I should adjust my tactic.

My rent is $2500

Mortgage $1988

PM fee is $125

HOA is $42

I have been able to save up about $5k for reserves for that home and because it’s only a 2 year old home, so I’m not putting a percentage away for maintence etc at the moment. That’ll change in the future.

@Immanuel Sibero

Ohh thank you for pointing out that error. Then the numbers make sense.

Mortgage $1988

Monthly net income $386

Purchase price $336k

1988 x 12 = 24,856

386 x 12 = 4,632

NOI 28,488 / 336,000 = 8.47%

So it turns out it was a good buy based on the numbers!

I just wanted some practice with real world numbers so I can better analyze future investments.

Thank you!

Hello,

I currently have my primary home rented out due to moving. I think the home is doing great, but maybe it’s not? I ran the numbers on it just to see how it would’ve looked as if I was looking to purchase the home as a rental and not a primary home. Just from the cap rate, it seems like I wouldn’t have gone through with the purchase?

I’m not sure I’m doing this right but for some reason the numbers look terrible, but in reality I believe it’s making good cash flow.

The cap rate (NOI / value) is 1.37%

Purchase price - $336k

Monthly net - $386

386 x 12 = 4,632

4,632 / 386,000 = 1.37%

Cash on cash (VA loan) 77%

Cash - $6000

Monthly net $386

386 x 12 = 4,632

4,632 / 6000 = 77%

If you saw those two numbers before purchasing an investment, would you have walked away??

@Brandon Beaudoin

Appreciate the information!!

@Brian Garlington

Hopefully with the new bill that passed where they'll remove the cap for VA loan, I can avoid changing my loan to conventional. I tried to do that before I left WA but the timing wasn't right and then limited my home choices in TN.

@Brandon Beaudoin

Can I still do the IRRRL even though I'm not longer living there? Will it be refinanced as a rental property or will it still maintain primary residence on the loan?

@Seth Ferguson

What would be the cons of doing this with my rental property?

Hello everyone.

My wife and I are currently in TN and we have our primary home in WA now turned into a rental. We’ve owned the home for about 3 years now and it’s currently being rented out. Below are some info;

Original loan - $333k

Current loan - $320k

VA loan - zero down

Interest rate - 4%

Mortgage - $2000

Rent - $2500

Current value is $386k per my realtor

Possibly $63.5k equity

My question is, do you think it’s wise to refinance and take the cash to put into another rental property?