New couple here, trying to get started in the real estate game.

If interest rate trends continue or hold, we're entering a subtle new phase in the market.

They have great credit, are putting ~37%+ down, and their income more than covers their current living expenses and the new mortgage.

Partner Driven added value to the N Pasadena Ave property by investing $1,460 in targeted renovations.

Is it buying a new home for you and your fiance? 

Today, we have launched premium new benefits available to you today thanks to our partnership with Invelo – an Off-Market Deal Finder platform.

Interested in new opportunities to learn and grow in.Open to meeting and collaborating with others in the field.Interested in Flips, BRRR, and other passive income opportunities. 

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.While the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.

Considering that DSCR  = NOI / Debt Service and NOI = Gross income less operating expensesWhen institutions are looking at operating expenses for a new purchase, how are they calculated?  

Replacing the furnace will allow you to market the property with an awesome, new fuel efficient furnace instead of a fuel hog that could break on any day.