All Forum Posts by: Michael Rodrigues

My townhouse is in Orem/Vineyard area, I currently own a house in Suncrest/Draper. And I'm looking everywhere but this particular example was in Ogden.

Thank you for the helpful responses. I've realized I was adding my insurance and property tax in twice; I had already factored that into my month debt payment. So subtract those expenses, and assume some for the suggested maintenance/repair expenses and potential vacancy.

Thanks for asking this question. Originally from San Jose, I am now in Utah and have been looking for a 2nd rental property, and I'm finding the same thing- everything seems to be well under 1%, but appear to have a few hundred bucks in monthly cash flow. My first rental, looking back, is also under 1%, but has cash flowed $200/mo and (luckily) has increased its equity by 80k. So for me, it turned out to really be an equity buy. Once the PMI falls off I can make a little more each month but still nothing significant. It has, though, created an opportunity for me to take out a HELOC or cash out Refi to put toward the next property. I just can't decide which is best. In other words, it didn't turn out to be a bad buy for me. I'm also willing to ride out any downturns in the market for the long term. I also recognize that some of the best deals seem to be OOS, so I'm starting to look there, however the thought of buying a house in another state is daunting. I don't know what kind of additional paperwork or loan requirements would be involved. Anyway thanks for asking, because there are others like me who are learning and have the same questions!

Hi all, Looking at a 2nd rental property for cash flow and long term hold. I've found the following, please let me know what I may be missing as far as my numbers. In Utah: healthy market in this city with projected 4+% appreciation projected for next year. Also this city is in many top ten emerging city lists. But really I'm more concerned about cash flow than equity increase. Listing price: 259900 Duplex (2 units, each are 3 bed 2 bath) Current Rent: $1000/unit, $2000 total/mo 20% down, just under $52k down Estimated Mortgage 30yr @ 4% (est) = $1322/mo That is assuming: $3350 in property taxes and $600 ins. Current Property Manager = 8% gross monthly rent 100% occupied with potential to raise rent Monthly costs: $1322 debt payment $160 property manager $279 Property tax (would be a yearly payment in full) $50 insurance No HOA = $1811 Rent- $2000 potentially able to raise it to $2200 If I calculated the cap rate correctly it's around 6.8 Doesn't seem like great cash flow, right? Am I missing something? I know I can offer a lower purchase price. Thanks for the help. I know I need to look into the 50/2 rule as well, haven't done that yet. Still learning. The 2% rule, if I'm calculating it right, says I should be getting over 5k in monthly rent? Doesn't seem right? Or is this just really that bad of an investment? My other townhouse cost me $178k 5 years ago and currently rents at $1400. Again, the 2% rule seems like i should be getting much more in rent, but that is the current market rent for that size townhouse in that area. Similarly, if monthly rent is $2000, that means $1000 will be expenses outside of my mortgage. Which doesn't quite add up, seems like my expenses would be lower in this case. Thank you!!

Hi Monte Blunk I'm in Draper and own a rental townhouse in Orem. I have bought two more homes in Utah, including my current home, and sold one for a profit in Lehi. None of these were flips- two were new construction and I've done well because the market is hot especially in Utah County. I am in the same boat, was considering a one property a year type deal, but am feeling like I'm missing out on the market. I'd love to have an AirBnB in PC. Keep me in mind as someone to bounce ideas off of, although I have minimal experience, we all start somewhere and I'm always looking to learn more.

Great advice here, Jonathan Twombly thank you.

I'm interested in learning more about FIG. I'm a Draper resident and looking to add to my portfolio. How do I go about getting in touch with an investment agent that can help me find a good property?

It's always a guess. In my opinion, (I'm in Utah) he market here is set to continue to grow for several more years. Yes, we have reached 2008 price levels, but with the growth rate here, shortage of homes (builders are selling out before even building), job growth, low unemployment, etc... not to mention a smaller scale tech boom out here, I'm confident with purchasing a rental to add to my portfolio. It's always speculation. I could be wrong, but I'm looking for long term buy and holds, so I'm hoping that even with a market correction I will be ok in the long term.

I'm looking for advice on what to do with a current rental property. It was purchased using 30 Year FHA loan at 3.5%. I currently rent it out and have another primary. I owe about $160k and it seems to now be worth $245k, compared to when I bought it at $179k about 5 years ago. My goal is to get into another rental property while keeping this one. I don't think I have quite enough equity to make a HELOC worth it at just 75% LTV. With my goal in mind, and having little capital on hand, Would you: - Refi to get rid of PMI... wouldn't necessarily give me instant cash to put down, but would increase cash flow, no? - Cash-Out Refi to get some cash to put down on the next property (I'm assuming I could cash out $60k or so) - HELOC Thank you!

Thanks Chris Ayers . Do you have any opinion on which would be a better choice for my situation? HELOC vs Cash out Refi?