All Forum Posts by: Tim Herman

BRRR to work ARV $230000 x 70%= $161000 - $85000(repairs)= $76000 offer for purchase. Even after you fix it up the income doesn't meet the 1% rule. $1495 monthly income = $149500 total price.

@Account Closed find out who owns it and contact them. You can go to the county's website: tax equalization in my state type in the address and boom up pops the name of the owners.

@Christine Krizenesky If your flip makes a profit it will be taxed as income. I am not a CPA but I don't think that rolling the profit over to a rental will then make it long term capital gains.

@Teren Cooley get a signed purchase agreement take it to a title company. Then have them run a preliminary title report. It will show all the liens on the property, It may have other liens you don't know about. Good luck

@Christine Krizenesky like @Steve Hall said it is all about leverage. you have  1 paid off $250000 house or 10 $100000 houses with 25% down. Same amount of money. Inflation of 3% your paid off house grows $7500. Your ten houses gained $30000.

@Kelvin Tian here is a calculator that has an amortization schedule and what happens when extra payment goes to principle. www.free-online-calculator-use.com/extra-payment-mortgage-calculator.html

@Kelvin Tian any financial calculator can print an amortization schedule.

@Jordan Doolittle if i started over i would buy 2-4 multi units and move every year. 10 years you would control between 20-40 doors. FHA loans 3.5% conventional 5% down owner occupied.

@Tyler Demars It is all about leverage. The mythical $100000 house with $1000 per month rent. 50% rule leaves $500 cash per month on the paid off house. Refi and take 70% out. But 3 houses with $80000 mortgages @ 5%= $430. $70 x 3 =$270 per month cash flow. paid off house grows to $134000 @ 3% compounded annually for 10 years. 3 houses worth = $402000. $80000 mortgage paydown to $65000 x 3 = $195000= $207000 equity. 1 house @ 3% rent raise =$1344. 3 houses =$4032- $1290 payments =$2742 per month cash flow. 

@Michael Babin with the limited numbers you have given you will only lose $104 per month. how I calculated it. 50% expense= $2025 per month  left over for PI. [email protected]% = $2129.