All Forum Posts by: Steven Barnhill

Just doing a quick search online, I can't find anyone who would lend $30K. Let alone $30K for 30 years. Does anyone have suggestions on finding someone who would loan this amount of money?

The tax amount is based on what the current owner paid last year. The county currently has the property valued at 37K . The insurance amount may be a little high. I was just trying to error on the side of caution. I currently have a $70K property that costs me $1266/year to insure.

With 20% down and a 30 year note at 5.5%, I could get about $200 per month cash flow using the current numbers.

How do you calculate cash on cash return? In this example if I put down 20% (7K) and cash flow $2400 for the year, is that a 34% return?

I have found a duplex that seems to fit the 2% (rent * 50) rule but the actual profit doesn't seem worth the effort.

Asking Price $35K
Total Rent: $750/month

Expenses per year
Taxes: $923
Insurance: $1200 (estimated based on my current rental property insurance)
Debt Service: $4656 (based on a 10 year loan at 6%)

With just the above expenses taken into account, I'm only left with $2221 and that doesn't even include any maintenance for the property. Am I doing something incorrectly?

I'm just starting to learn, but according to the 2% rule this would not be a good investment. With the purchase price at 750K, you would need 15K/month in rent to make any money. I don't see how anyone can make money from renting houses that are this expensive! I'm just north of the dallas area. For 750K in this area you can get a VERY,VERY nice home.