All Forum Posts by: Richard Rohrbough

Thanks for the reply, Bill. Good point on the principal part of my mortgage payment. It was $216 this past payment, so looking at it from your perspective, I may be $150 short cash flow-wise, but I'm actually making money when I consider that I'm paying off $216+ each month. (Perspectives like this are why BP is so valuable!!!)

However, with the 2023 tax increase, I'm going to be around $300 short on cash flow each month, unless I can successfully protest some of the tax increase. So let's call it $280 short each month this year. I won't hit that amount on the amortization schedule until year 5. (I just got the loan in January.)

I'm not sure I follow when you said, "Would it really change anything big picture if you had an extra $151/mo coming in? If so, then sell now! Otherwise imagine how many things could cost you more than $1,800/mo."

As for rent increases, a 5% rent increase takes $1625 to $1706 and another 5% increase takes it to $1792. If making positive cash flow is my goal, (and I think you're telling me to look at the bigger picture instead), then I need to be at $2015/month this year just to break even on cash flow. With annual tax increases, I may be chasing positive cash flow for years! And that's my concern.

 Thanks for the reply, Matt. This is a rental, not my primary residence.

Hello BP friends. I need your help on what to do with my rental.

My monthly mortgage payment is greater than the rent I can get by $150 and the 2023 taxes are going up another $150/month.

I’m sure this is a common issue, so what are my options beyond the three I can think of below? Anything creative?

1. Ignore it/deal with it/subsidize it with other properties until someday rent catches up with my payment (meanwhile equity should have grown).

2. Make a large payment against the mortgage and ask the mortgage company to re-amortize the loan so that my monthly payment is less than what I can get for rent.

3. Sell the house (and make a better purchase on the next property).

Sorry I'll miss this event (as I don't live there), but I would have loved seeing what you have going on there. Maybe we'll get together another time.

When's the next (virtual) meeting? Chris and I have talked (he's the go-to man in B/CS) and I'm interested in meeting others in the area too.

@Todd Nurnberger I'd like to join you for your BREW meetup this month, if that's OK.