All Forum Posts by: Vik Ari

thank you all...

hi nigel and all,

yes, I worked on looking at the fact that $1000 per month would be better off as a down payment on another property. But my circumstances are that I may relocate to Europe very soon, so I do not plan to purchase anything now. Moreover, if I put more towards the principal, then I pay less interest each month and payoff my loan sooner, higher cashflow also in future. With the housing meltdown, the property value is down and so I cannot even sell without taking a hit, plus renting has become harder and there is a lot of pressure to reduce rent etc...

So this strategy will enable me to have more flexibility on being competitive on the rent i charge which I reduce to attract stronger tenants, without taking a loss on my monthly rent cashflow...

I was looking at all the options given my circumstances etc...

Please advice as I am new to all this...What do others do in my scenario...

thanks

thank you

since this is 30 yr fixed, my payment per month won't change correct? however since my loan balance is $1000 lower, this will cause my more of my monthly payment to go to principal and less towards interest correct?

Just making sure I understand the concept....So do I write on the check...this amount of $1000 is being paid towards prinicipal only...how do i inform the mortgage company on this?

How does making an extra say $1000 towards mortgage principal affect the mortgage? For example if I pay an extra $1000 on the 15th, would that reduce the amount of interest I pay next month since my mortgage balance is reduced by $1000? Do I just look at the amort schedule to see what the effect it?

Pls advise thanks

hi,

pls offer ur advice thank you

How does making an extra say $1000 towards mortgage principal affect the mortgage? For example if I pay an extra $1000 on the 15th, would that reduce the amount of interest I pay next month since my mortgage balance is reduced by $1000? Do I just look at the amort schedule to see what the effect it?

Pls advise thanks

thank you for the great replies. i am looking to move to europe soon for a few yrs and so right now my property is breaking-even on rent vs loan payment and the price is down slightly. If I put cash into it, then I will have positive cash flow and will able to break even on selling price and sell it in a few yrs. However, I can also use that cash to invest elsewhere and get returns. So how do seasoned investors decide what is the best way to deploy cash?

Do investors deploy cash into a loss making property to turn it profitable and cash out...OR

They just take the loss and invest the cash elsewhere to profit against that loss?

pls advice

thank you for the great replies. i am looking to move to europe soon for a few yrs and so right now my property is breaking-even on rent vs loan payment and the price is down slightly. If I put cash into it, then I will have positive cash flow and will able to break even on selling price and sell it in a few yrs. However, I can also use that cash to invest elsewhere and get returns. So how do seasoned investors decide what is the best way to deploy cash?

Do investors deploy cash into a loss making property to turn it profitable and cash out...OR

They just take the loss and invest the cash elsewhere to profit against that loss?

pls advice

Hi,

What are the pros and cons pre-paying the mortgage for an investor. Obviously no interest needs to be paid, so that is the cashflow, however if later I need to take the cash out, can I refi?

Pls provide your expert opinion

thank you

advise pls?

I treat everyone equally always. I also run my rental as a business so I need to understand my risks.

The rent for this 71 yr old senior citizen is paid by his son. I have always rented to people who pay their actual rent, so this is a first. Also, if there is a mishap such he falls down or something, I do not want to be sued. Also as he is living alone with nobody to help, lets say they leave the stove lit and forget, i dont want the house to be burned down.

I have no idea about their health profile, can I ask for that. Also if the son stops paying rent, then for eviction, are there different rules for senior citizens, as I am in NJ.

Again, I always treat my tenants equally, but this is a business, so I need to understand the risks. Also if son is the guarantor for rent, do I need to do separate paperwork, or do both sign the lease?

pls advice, thank you