All Forum Posts by: Troy Bleth

Two problemmatic metrics. It depends also how much money you have in the deal. I know some would say that if you put $0 and had $0 cash flow but the tenant was paying the mortgage they would say that is a bad deal. I would disagree. I do this with mortgage notes where I sell /hypothecate partials. As an example I buy a note for $25k that has 100 payments left and sell 80 payments for the $25k. Basically I do nothing but collect 20 payments in 7 years.

This is also very dependent on your personal situation, I am 46 so I would not want 3 homes with 30 year notes, I would prefer to have shorter term loans where they are paid off earlier and am not as concerned with cash flow because I am not cash flow hungry. This is not to say I do not take advantage of 30 year terms at low interest rates, but I manage how much I leverage.

Thanks Chris, I definitely have considered age as a factor as well, im 32yrs old so I have plenty of time for a 30 year mortgage especially with rising rents if I am cash flowing close to zero to start I would Imagine a decent cash flow within a few years.

I have my single family rental with 12 years left until it’s payed off and my primary residence is in a 30 year which I just started a year ago , so I think another 30 wouldn’t be an issue for me .

0 Votes

Quote from @Eliott Elias:

This is a really broad question. It is ultimately up to you, do you work a full time job and can afford a few vacancies, and want to look at this as a retirement? Or are you living off of this cash flow?

I do work a full time job and currently saving the cash flow each month . I can afford 1-2 vacancies so I guess that answers the question on how many to but if I were to.

1 Vote

would you rather have 1 home valued at $500,000 which cash flows $1000 per month and be paid off in 10 years or have 3 homes valued at $1,500,000 total which cash flows zero dollars per month and be put into 30 year mortgages ??

Is cash flow king ? Or if I am able to play the long ball game would the history of rising property value be more beneficial in the next 10 years.

Thanks !

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Quote from @Logan Webb:

Quote from @Troy Bleth:

Hey Logan ,

the single family home I own has 12 years left til it’s paid in full

I’ve crunched quickly numbers on if I were to get 3 more properties in the area I live in (which is what I prefer) and with interest rates the way the are I would be at zero - $100 cash flow per property ..

Gotcha! Yeah personally I wouldn't sell and buy others. I would just keep holding your current one. Especially with rates being a little higher right now, and likely going to continue to rise more throughout the rest of the year. 12 years is a long time to wait, but with $1000/month cashflow that is $144,000 more you will have in 12 years. Your cashflow at that point will be more too because the mortgage would be gone, rent will have gone up, etc. In 3-4 years though you will have some to put towards another property.

Thanks Logan, I agree. That 2.5 % with 12 years left is just too good to let go. If I want to make a move sooner I do have the heloc option and also will have that $12,000 a year to put towards the next one.

Thanks so much for the reply

1 Vote

Vancouver, Washington

Quote from @Nicole Heasley Beitenman:

Why not take out a HELOC instead and use that to buy another property or two?

I definitely have thought about doing this and I think in reality it will be my most likely scenario, I’m kicking myself for not taking advantage of heloc When rates were lower but nothing I can do about it now.

1 Vote

Vancouver, Washington

Hey Logan ,

the single family home I own has 12 years left til it’s paid in full

1 Vote

Vancouver, Washington

Quote from @Logan Webb:

Hey Troy,

Honestly it just depends on your goals, and what the numbers look like for those other three properties you'd end up buying. A cash flow like you're seeing right now is fantastic. Granted, you have some equity built up into that property so that is where some of that is coming from with your mortgage payment being lower. I would ask, how much longer do you have the mortgage for? You might be able to get more cash flow overall with selling and getting a few other properties, but the work required for that might not outweigh the increase in profit.

If you know you could cash flow similar to $1000 from the other properties if you were to sell and buy 3 then I would do that.

1 Vote

Vancouver, Washington

Help everyone! I have a scenario and I just don’t know what to do, I feel stuck.. I currently have 1 single family property that cash flows $1000 per month , the house could sell for around $500,000 and I owe $140,000 on it, it’s in a 15 yr mortgage @ 2.5 % (pretty good) - would it be smart to sell this home and use the equity towards the purchase of 3 similar priced homes? Or should I continue to save my positive cash flow for another home ?

I get concern of the potential of possible zero cash flow for a few years But if the long term play of equity could benefit me more then the cash flow then I’m very interested

fyi I feel rate stuck in this current market - my single family home @ 2.5% rate gives me comfort and seeing 5-6% rates on investment properties concerns me.. but I don’t want it to steer me away from make a game changing move if purchasing 3 more instead of having the 1 is the best play. Please any help would be amazing !

1 Vote

Vancouver, Washington

All Forum Posts by: Troy Bleth

Troy Bleth has started 2 posts and replied 8 times.

Post: OPINIONS NEEDED- cash flow vs long term property value

Post: OPINIONS NEEDED- cash flow vs long term property value

Post: OPINIONS NEEDED- cash flow vs long term property value

Post: HELP ! Positive Cash flow? Or sell 1 rental for 3?

Post: HELP ! Positive Cash flow? Or sell 1 rental for 3?

Post: HELP ! Positive Cash flow? Or sell 1 rental for 3?

Post: HELP ! Positive Cash flow? Or sell 1 rental for 3?

Post: HELP ! Positive Cash flow? Or sell 1 rental for 3?