All Forum Posts by: Talley Haines

Yes, that makes sense.....I will check on that today. 

Thanks to everyone for the advice

No mortgage on this one and we own several others without a mortgage.  

Need some advice when it comes to insuring a rental property...  I have a rental that would probably sell for around 200,000 if I sold it right now but my plan is to keep it and rent it out.  Would it be a bad idea to get 150,000 worth of insurance on the house in order to keep my monthly payment down.  

Please explain what dscr stands for..

I came across a deal and here are the numbers. 

Purchase price 150,000,  50,000 down, pay down the rest over next 5 years at 4% for a 1900 monthly payment.

14 total lots 10 lots are filled and 250 is rent per lot for 2500 monthly rent collected.

My costs will be garbage collection per month at 140, property tax at 90 per month, and liability insurance which I’m still waiting to get a quote (he said his was 20 a month), and prop management at 10% so 250.  

We will about break even with cash in and cash out as it stands right now.  With the payment over the next five years we will not cash flow unless we fill another lot or raise rates but after 5 years I’ll own free and clear.  Rates in the area are around 300 for similar properties so we will raise rates over time.  I think it will cash flow 3,000/month 5 years from now when it’s paid off, but it is not a given.

I am about to purchase a rental property that has a yard that will be a bear to mow for any future renters. I am considering fencing off half of the yard and adding a couple storage sheds for some added cash flow. Anyone have any advice or negative experiences with something like this?

Thanks for the reply.

Can someone explain what the 2 year ballon payment with this Lease option deal means.  Here is the deal.  
The house is listed at 109,000 and the lease option has a 8500 down payment. For two years I make a 1050 month payment. At anytime during the 2 years I can refinance out with a bank loan. Any help would be appreciated.

Yes doing it myself and I’m learning as I go. I could pay someone to do it or buy new ones. Yes putting in new floors, appliances, and countertops.