Typically 1% of the outstanding loan balance, some borrower will negotiate it down to .5% for the first assumption.

For example, if you take a $60k home equity loan, you will get $60k in cash BUT you will owe about $65-66k on the loan balance because they tack all of the fees on to the loan and then you end up paying those out of pocket.Hope that helps a bit and good luck!

Never carry a balance.

You are optimizing for peace of mind as much as returns i.e. balance.

Listing Price:$ 99,990Down Payment: 20% ($19,980) Closing cost: $5,100Loan balance: $79,920 @ 5% for 30 year termEXPENSES (Monthly):Principal & Interest: $ 429Vacancy $40Water/Sewage: $0Taxes $212Insurance $76.50Utilities: $0Management $144Maintenance $24Trash $0CAPEX $172.80TOTAL : $1,098INCOME (Monthly):Rent 1 bed 1 bath $800 (occupied on 1 year Lease)Rent 1 bed 1 bath $800 (occupied section 8 for past 10 years)TOTAL: $1,600I plan to offer about $87K to sweeten up my cash flow, considering they have already dropped the price before and seller is motivated due to acquiring this property from a deceased family member.

I am familiar with Long Island (I know it’s very difficult to invest here), upstate New York, North Carolina, and Virginia, and I would like to start my real estate investment path in one of those areas.

@Vincent PlantIt sounds like your cash flow is slightly less: consider setting aside 10% of the rent for repairs (paint, carpet, plumbing, etc.) and 10% for capital improvements (new roof, new HVAC).Consider paying any debt with high-interest rates (anything greater than your cash on cash return).Save the balance for your next deal.Good luck,

I think that doing what I did in todays market is much more difficult and has higher risk.

@Luis Barberi That is also a good thing, it will probably be a little difficult unless the company has enough size to be talked about on the internet, but either way, be very diligent and aware and you will do great.

Based on your posting the damage seems to be extensive, especially since it’s affecting the structure of the home such as a floor beam, sill plate and subfloors.It appears there is active termites as well as a beetle issue and both must be resolved before repairs can de done.You didn’t mention home value, just purchase price so it’s difficult to say what to do from this point.At a minimum, I would have the termites and beetles dealt with and get a bond from the termite company to cover the first year for more treatment.Also, have a licensed contractor give you a repair estimate.