All Forum Posts by: Paul Ho

all those expenses is what is included in the 50% rule. the other half $775 is going to be used for those expenses.

I believe that's the whole point of the 50% to "estimate" the expenses putting half of monthly income for those reasons. and taking the other half subtracting the mortgage. Correct me if im wrong. Sorry im still new to real estate @Bob B.

@Bob B.

 Yes its a legal duplex

thanks I will do more research.

@Steve M.

still need an agent so I can make an offer on this property.
but yea I need to check out the place still and meet tenants to see how they've been keeping it in shape.

also will need to hire property management but all the other half of income should cover the expenses including property taxes

@Jesse T.

Tenants pay all utilities
class B type area
20% down can be done too. they're just handing the money over to me so I can down pay.
 so that makes $386 monthly making CF $389

I still have to check out the property this week

@Steve M.

It was also renovated and built in 2002

Deciding to go for this deal for a rental use.
Still have no agent to represent me for this as this is my first deal approach.

Duplex 4BR 2BA each

Listed Price: $99,900
2 Tenants currently renting $800 & $750

So using the 50% rule 

Income $1550/ 2 = $775

30 year 10% down (parents sparing me money) with 4.1% interest $435 monthly

$775 - mortgage ($435) = $340 Cash Flow.

Now the area is not the nicest of Atlanta (Fulton county)

No HOA fee

Should I go for it?

Im sorry I messed that part up. thanks for catching that @Mark Ferguson 

I have parents that are willing to spare me that 10% down cash if this deal works out.

Alrighty so.. still looking to do my first purchase.

Duplex each unit 4BR 2BA. Built in 2002. 

Listing price: $99,900

Currently rented with tenants paying $750 & $800 per month.

Using 50% rule: $1150/2 = $575

By choosing a 30yr mortgage - 10% down - 4.1% int

$575 - $435

= $140 CF

now this is without having to throw any offers yet as I am still in need of a agent.

How do the numbers look? 

Still a newbie here so I probably missed something

-Thanks :)