All Forum Posts by: Zelie Pollon

@tim oh my, I have so much to learn.

I work independently so I can rarely get a loan. I finally am in a full time gig so trying to maximize what ever I can get from a bank and pay cash. Perhaps not the most prudent over the long haul, but banks just have never liked me. And hard lenders charge so much I can only think of flips (which I know very little about). But I hear you. And actually had forgotten Brandon's goal of 12 percent. I'm way off... again, appreciate your time and input.

Thank you for this, Tim. I guess some purchases go under emotional response/attachment. Or simply fearing there are no better options for $150k. You've given me pause to rethink this.

 I’m having difficulty running these numbers because they don't fit under any one of the categories here. I wonder if some of you might help me work through this. I'm taking a loan on a single family investment property in a hot New Mexico market. Rather than sell the home (not sure I could ever buy back in) I decided to take out the max on a cash out refi at 3.6%. I have depended on the rental income so am a bit nervous going back into deep debt, but the rent will still cover the new mortgage with $400 left over (per the bigger pockets calculator and assuming the loan will also cover some capex).

I have one condo I’m close to buying but it does not fit the 1% rule at all. It’s 150000 and might one day rent for $1200, maybe 1300 (currently at $800 with 200 hoa/mo)? But if I’m paying cash and the initial loan is covered, do I make the same calculations for each additional purchase? My head is swimming in numbers so I fear I'm not seeing clearly. Input from more experienced folks would be greatly appreciated.

The example above is what I did with a home in northern New Mexico. 15% percent down, five year term at 5%. i decided the minimum monthly amount I wanted and we calculated the final ballpark payout from that. Title is being held at the mortgage company with payments recorded. In the contract is says any default and the property can be reclaimed with no refund. The 15% down definitely inspires ongoing payments. The person is on year three and has never been late. She also pays all fees relating to the finance and everything with the house. 

But my main question here is how to incorporate my savings in rent into this equation? can anyone lease advise. Perhaps sharing the calculator was not effective method -- I'm still new here. But definitely wanting to examine some properties with my own savings of rent in the mix. Advice?

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*This link comes directly from our calculators, based on information input by the member who posted.