This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.This example shows that while the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.

I am looking for multi cycled firms to invest thru w/excellent returns, agnostic of investment.

It is very hard to "perfect BRRRR" here with consistency or anywhere for that matter with today's rate and insurance costs.

I'm reviewing my rental property insurance after having gone through issues with the first ever claim on my current policy, which we're finding out has poor claims service and lacks ordinance or law coverage.

Hi guys,So I have some Insurance questions.

Private firm?

Are there any issues with insurance for these units?

If you buy a house with a $1,500 mortgage, you also need enough to cover taxes, insurance, and maintenance.

I'm also a firm believer in "everything is not for everybody".

I’m worried about legal/insurance exposure and also just generally annoyed at all the foot traffic in the u it