All Forum Posts by: Walther Mendez

Thanks for clearing that up. Im trying to start saving before I begin renting out the home to have about 4 months worth of Mortgage payments, so it will be $3,440 I will have for reserve (vacancy and maintenance fund) . I will then begin taking out 20% of each rent payment I get and add it to this fund for vacancy and maintenance. How large should I let my reserve fund get before I stop adding to it? 6 months worth of mortgage payments? Or should i pick a number like $10,000?

@Zach Scheer thanks, it is allowed and we are still well within our owner occupied vs rented units.  @Samantha Klein is this 8-10% of gross rent or property value?

Hey Everyone, I am looking at renting out my townhome in February/March 2018. I would like to save about 4 months worth of mortgage payments before I rent it out. It is currently my primary residence and my wife and I plan on buying a second home around that time frame next year. The townhome was built in 2016 so all appliances are new and no major renovations are needed as of now. My mortgage, HOA, Taxes and Insurance come out to $860 a month and the townhomes near me are renting for about $1200 a month. I do plan on managing it on my own for the first year or so. I do plan on saving more than the 4 months of mortgage, but would like to know at what quantity should I begin to use the cashflow to save for another investment. My question to you is how much reserve should I save for my unit? Is there a rule of thumb I can go by? Thank you in advance!

thank you all for the replies. Yes we are in the Charlotte area. My parents are small business owners already and that consumes a lot of their free time. So they are looking at an avenue where they can simply be investors. 

Thanks you @Curtis Waters thats exactly what I was looking for. 

Hey everyone,

My parents are actually looking at this not me. Their primary home is already paid in full (valued at $150k). My parents and I were wondering if taking out a mortgage against their home and using that money to lend to investors is a good investment. They would only take out about 100k that would require roughly a $650 monthly payment. 

First question is what kind of returns could we expect? and what kind of terms are traditional here in the Charlotte NC area. My dad would like to partner with a group of hard money lenders and not really screen candidates himself so he would be more of an investor. 

I have seen this question in the forum before but I was wondering if anyone is the Charlotte, NC area is currently doing this and whether it is sustainable. Seeing how rates may soon start going up it may be best to do this earlier than later if it is in fact a good idea. 

Thank you in advance.

Hey everyone,

I am running an analysis on my current primary residence. It's a townhome I plan on turning into a rental in a few years. I used a 5% Vacancy which after the other monthly expenses would cash flow about $100 a month. My question to local investors is what Vacancy percentage should I use for the Charlotte NC (Steele Creek) area. Is 5% too low? how many months worth of mortgage payments should I save up in case I can't find a tenant. I also do plan on having it professionally managed. thanks in advance!

Hey everyone,

I am running an analysis on my current  primary residence. It's a townhome I plan on turning into a rental in a few years. I used a 5% Vacancy which after the other monthly expenses would cash flow about $100 a month. My question to local investors is what Vacancy percentage should I use for the Charlotte NC (Steele Creek) area. Is 5% too low? how many months worth of mortgage payments should I save up in case I can't find a tenant. I also do plan on having it professionally managed.

I would like to thank everyone who put this meet up together. It was very informative and eye opening. I would recommend to anyone to go to the third meet up to see how the rehab turns out. There were lots of tips being shared that are unique to the local area. Once again thank you guys for putting this together.