Darryl Cook
New Real Estate Investor Looking To Learn From The Community
21 October 2024 | 6 replies
You will then have a few options with that rent money....you can put it into principal or you can start saving it to purchase yet another property.
Aristotle Kumpis
3D Printed Homes - Thoughts?
16 October 2024 | 3 replies
I attended one of their events, and it truly seems like a great solution with very few drawbacks......eventually.
Gino Barbaro
How To Invest Passively
21 October 2024 | 11 replies
Not sure there are many sponsors that would come out of pocket like that. made no return for 3 years but got our principal back which is a win in my book..
Chris Seveney
Risky 2nds - Why a Paying 2nd can also completely wipe you out.
24 October 2024 | 15 replies
And any loan basically at 65 to 70% LTV total if the first goes bad your going to take a huge risk of loss of interest ( almost guaranteed) and loss of principal..
Omar Doyle
DSCR Loan insight
21 October 2024 | 9 replies
I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).
Account Closed
Buying a property in 2025 - Bonus Depreciation?
17 October 2024 | 15 replies
In 2024, it is 60%.You may also have an option of applying a different method (Section 179) that can give you 100% on some of the cost segregated components, but this has its own drawbacks and complications, so it needs to be discussed with your accountant beforehand.Also, have your accountant estimate your potential tax savings before ordering cost seg.
Edward Heavrin
Paying off a rental aggressively. Pros & Cons?
20 October 2024 | 84 replies
Equity gained from principal paydown is also free, if the source of the funds comes from the rent (tenant).
Joseph Shuster
Negative Cashflow - STR
28 October 2024 | 46 replies
Add in another 17k in principal paydown per year and their return is closer to 85k or 90k a year not including any appreciation which historically out there is 5 to 7%.
Jasmine Wilkes
Cash out refi no mortgage on home
20 October 2024 | 13 replies
I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).
Eric L Conry
Should you sell stocks to pay off a rental early?
19 October 2024 | 15 replies
The stock account is tanking, you see no hope for it to return, and you want to preserve the remainder of the principal;3.