All Forum Posts by: Tony Wilson

Sample A:

I'd like to refinance my house to pull out cash for a couple rental properties (or just one). If I refinance my house it'll add $171 a month to my current mortgage plus closing cost to refinance. That being said, it'll give me $40K to invest for a down payment or a large portion of it. One house is selling for $70,000 while the other is $60,000 and they should each rent for $850-$900. 

After the down payment, the loan amount (p&i) will be $284.00 a month for the $70,000 and $243.00 a month for the $60,000 home. 

Would this be dumb to do or is it a good decision?

@Charles Carillo is everyone on BiggerPockets just finding better deals?

@Charles Carillo I could look into flipping it. Is it better to rent multi family homes?

I’ve been constantly looking for deals but can’t seem to find a cashflow positive house.

Example A.

House is $59,000 asking price (worth $80,00). Let’s say I get it for $48,000 (80% off), no down deposit, which is doubtful. I put 20% down equalling a loan amount of $38,000. After I calculate insurance, taxes, management, repairs and vacancies, my cashflow is right at $100. Is that enough when I haven’t even considered CAPX?

@Nik Corbaxhi would this be a good deal if I actually had the down payment? With everything calculated it gives a cash flow of $279. Since i was thinking of borrowing the money for down payment that cuts the cash flow to $79

My math is not correct on repairs. It should only be roughly $5k in updates (paint, carpet, doors). I just like adding more incase of in accurate estimation. The 35k is the total I'll be getting a line of credit for  the down payment and closing $25K with 10K in repairs. My cash flow is $200 when I put in maintenance, misc repairs, vacancies, taxes and mortgage. That being said, i'm borrowing the money for the down payment and repairs which is going to cost me $145 a month. So my cash flow now becomes $55. Is this still a good deal? I know if I had the down payment my self it'd be a great deal, but since i'm borrow the down payment/repairs, I don't know if it is. 

I am looking at buying a rental property, but I have no down payment. I was thinking of utilizing a line of credit of $25K-35K for down payment and closing cost (6.2% interest). I believe this is a great deal of a duplex, however, the cashflow calculator doesn't pencil out when taking the line of credit into consideration I have to pay back. The duplex is $150,000 asking price and after roughly $15,000 of new paint, carpet and appliances, it'll be worth $200,000. The total rent should be $1,950. Would this still be a good deal?