All Forum Posts by: Paul Gilo

yeah... that cash on cash is not so hott. 

... but i dont understand this interest only loan. you got to pay the principal at some point, right?

interesting. following the post... but my fear would be that you would over leverage your self like this.

i would imagine shes all in at 308k. 

im a noob too... but if i had that option id do it. 

assuming its a good hood and you can get that rented.

48k income. 24k NOI

with 20 down.. your in at about 70k with closing. 

24/70 = 34% CoC ... not bad if you can keep that ideal situation. :)

@Aisha H.- not aware of that construction. were looking between reams and chase. we will see what happens. thanks. :)

@Aisha H.- Windermere is nice, but its away from everything... all they have a is a publix there. :) Were looking to rent a place there for 1650/mo and also for sale for 260k. Well that certainly does not meet the 1% rule most ppl here talk about. The owner is freaking out, because they are loosing money... i would imagine. We were looking to buy... but renting seems to a much more cost effective option. 

The whole bubble thing... I hope I have the patience to hold on and not get my money into an investment thats gona hurt me in the long run. I'm full time employed, so being hands on is kind of tough...  

@George Gammon - fantastic write up. would love to read more, if your willing to write. Had to read a couple times to get my head around it... I'm a n00b, but certainly eager to learn.  So what I get out of your post is that 

1. We could be in for a bigger backlash, than the previous one, based on your comment of future demand being pulled forward due to low rates. And since rates cant really get much lower, there isn't much the FED can do to prop up the economy if it all flops.

2. Only buy if you can add value and get your original investment out with a cash out refi

3. Only buy if you can rent it for 1.3% of purchase price per month. So in other words, if you spend 100k on the property, you better be able to rent it for 1300/mo

did i get that right? :)

@Curtis Yoder - thanks for the thoughts. yeah, after searching to buy for a few month... the prices seem to be up there. so we gave up and going to continue renting... and hopefully pick up some investment properties with my deposit money.  I would think that we learned our lesson and a repeat of the previous flush wont happen again, but who knows...  I do like your price target... not sure where you find them, but hard to loose with 40k house.

@Aditya Var- I lived in jax for over twenty years ... st johns county has always been hott. good school districts from what i hear... but yeah.. even duva/jax is getting expensive.

@Brent Coombs

it certainly could. and in some areas we are seeing prices going up quick. lots of investors. 

were looking for a new rental. went into a new community and it looks like half of the units have lockboxes on them.. lol  .... international investors they say...

@Brent Coombs- I thought the GFC was due to fact that lenders were giving money to ppl that could not pay the mortgage. Thats a bit different than appraisal on the property...  but whatever. Irrelevant. 

You make a valid point. Be cautions. :)

figure out your goal and the results you would be happy with and crunch the numbers. 

there are far too many factors for anyone to give you a flat %