The new investment earns $24,000 a year, but the mortgage + the equity loan cost will be $22,332—and that’s before you account for taxes, insurance, maintenance, capital expenditures, vacancies, etc.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $252,000

Cash invested: $25,000

Brick house, 4 bedroom, 2.5 Bath

How did you find this deal and how did y...

Your NOI even for single-family properties is flat or falling because of the high supply and continually rising expenses (especially insurance, labor, and interest rates but those seemed to have plateaued).

As I understand it, the lien gets wiped from title but HUD gets paid first due to the mortgage insurance.

My strategy is to invest in markets with strong future appreciation potential and areas where population has been consistently growing with some cash flow.

Strategies?

It means getting ready for renters, changing insurance, posting ads online, checking out who might rent, using a rent form, being clear on who fixes what, and talking well.

Everyone seems to talk about including the costs of the new mortgage, taxes, insurance, maintenance & capital reserves, and the vacancy projections when looking at realistic cashflow, which we already do for all the properties in our rental portfolio.But we, like many, cant find properties that are making any cashflow sense right now.

Assuming utility costs and insurance and taxes to be around $300/month, if you add that to the mortgage, you're spending $1300/month every month you have no tenant(s) in place. 

Happy to hop on a call to learn about your strategy.