All Forum Posts by: Sharon Miller

120K purchase price, current value 200K, insurance 900, and property taxes 1300

Do I use purchase price or current value as cost of property? 

What is the formula? Can someone please help? 

Hi Jeremy, 

Everyone likes the comfort and safety, I know I need to break of that habit and be more adventurous. However if you look at the bigger picture, I would need a lot more houses for rent to live from positive cash flows. IN addition, I would need to have more down payments for those prospect houses, which means more cash out of pocket(or maybe use heloc). Just the thought of swimming in debt but positive cash flow part makes me worry a little. :) To get to that level requires a lot of careful planning, and putting those plans into action without hesitation. 

I think once I sell my primary residence, I will have a lot more cash to buy more properties. 

Thank you for your sound advice.  

Hi Greg, 

To your key reasons, 1st one, you are right about low return on equity. Also I lost access to cash, paying off mortgage requires a lot of capital. 

I don't follow you on lawsuit magnet comment, tenants are not aware the house is paid off. In this day and age, we could be sued for any reason whether house paid off or not. How is, not paid of mortgage an advantage? Would you please explain? 

On your last point about having more properties, Don't we need to put down payment for the prospect houses? Where am I going to get that cash from? What is the percentage of down payment, %10 or %20 of market value of the house? 

Thank you for your advice, its really useful. 

Please be patient with me since I am very new in this field. 

Hi Everyone, thank you for your time, I am a newbie so please be nice! :)

I have following Assets:

Rental property - Purchase price 120K (Current Value 200K) - fully paid - bringing $1450 a month

Primary Residence - Purchase price 320K(Current Value 380K) - 150K due in mortgages (1140 only principal and interest monthly)

I am going to finish my mortgage payments for my primary residence as fast as I can since I am almost there. After its finished, I am not sure what would be my next step? Renting my primary residence will only bring $2500 a month, which is not much considering its value. 

Here is what I am thinking my options are:

1. Sell the primary to tap into cash, so I can purchase another Primary residence and in addition one or more rental property in 100 - 150K range

2. Keep the primary residence, and get Heloc to purchase another investment property in 150K range. Though I really want to get out of my current neighborhood, since house are too close no breathing space. 

Any other options that you see fit in my situation? 

Thank you for your help in advance. 

Sharon