All Forum Posts by: Ryan Fortier

Also, for that 4M commercial building with a 3M commercial loan, your net worth has to equal or exceed the loan amount.

@Account Closed  Do they match your down payment 50/50 on a purchase?

@Marielle Walter  You already know what you're doing!  Yes, I believe the current rule is still if you have lived in the home for 2 of the past 5 years up to 250k(single) or 500k(married) of gain is tax free.

I'm originally from Portland, ME and have family who are investors there as well. A couple years ago I bought a 2 family property there which has performed very well for me.  However, that market is starting to get "expensive", so I'm considering looking to the south(as a lot of other members have) for large multi-family properties.

Venmo

When you have multiple properties, it's sometimes easiest to simply go through a good insurance broker.  Every company has different guidelines and rates for different risks, primary home, investment home, unoccupied home, residential vs. commercial, etc. If you go direct to companies(StateFarm, Allstate, USAA, etc) you have to hope that their underwriting guidelines and rates will be favorable for all these different properties/risks. Sometimes they are, but if not you have to call each company separately, provide your details all over again to get a quote, which is time consuming and can be a hassle.  A broker can choose from many companies and match your risk specifically with the company who can handle it. 

I know someone who own's summer rentals in OOB and in the off season rents them to college students without any problem.  OOB is a great place for weekly summer rentals and then renting to students in the off season.

Annual gross rent of 15k, assuming your operating expenses are half, financed 80% at a 5% interest rate, which comes out to around an 8 cap.  Not bad at all - you are in the game!

@Llewelyn A. Regarding the CD, why is the average return($25,967/30k)over the 10 years 8.66% but the interest rate paid is 6.43%? If you were to take the annual interest payment every year and not leave it in the CD to compound, you would be receiving $1,930 every year for 10 years, which is a 6.43% return.  When the money is left in the CD to compound, your average return is greater that the quoted rate.

If we are not going to touch the annual payment from the CD, but rather leave the money in the CD to compound, wouldn't we need to do the same with the annual cash flow from the property? Somehow reinvest the cash flow into another investment? 

If I understand the whole concept of your post, you are just trying to compare different investment products based upon the total you have invested, the total you collected at the end of year 10 and what that rate of return is.  Each product will have very different variables and investment features, so you are trying to match up the total money received at year 10?