All Forum Posts by: Thomas Foote

Looks pretty good to me, provided it is an area that you think will appreciate and has prospects for steady job growth. Don't forget that your tenants will (mostly) be paying down your mortgage. PMI will allow your cash to go farther, and perhaps allow a rainy day fund for roof replacement or other unanticipated expenses. With any luck in a few years you can get it removed once you hit 30% loan to value, assuming you have that much appreciation. (The last tricked worked for us on an duplex we own in Texas!).

"It is a LOT of money" -- cost of rental properties is all relative.  That's a LOT of rent, so the rent/price differential seems very reasonable to me.