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12 January 2025 | 7 replies
My goal is 25 doors in 5 years, my struggle right now is deciding to either go back to work and save up money to continue or come up with a way to leverage financing to stay afloat myself and stick with it, waking up everyday 100% dedicated to my real estate.
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8 January 2025 | 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).
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8 January 2025 | 10 replies
If you paid under $230k, you’d save $30k in federal capital gains taxes and maybe another $15k or more in state income taxes.
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4 January 2025 | 12 replies
My suggestions would be in this order:(a) Determine the type of financing you qualify for - this will short cut the process considerably and save time on investment angles and next steps.
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7 January 2025 | 12 replies
Eliminate debt, establish a budget, and save.
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5 January 2025 | 6 replies
Then save up as much as you can and buy a small 6-15 room motel or partner to buy something largerHotels are really expensive to get into as well.
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11 January 2025 | 15 replies
there are ways to get around the highest and you also need to take into account the savings you will generally have on the purchase side when compared to other regions.
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12 January 2025 | 20 replies
Going direct saves you and the seller money, giving you a lower cost to entry which helps all your numbers, but you have to put in the extra work to find that deal.
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6 January 2025 | 8 replies
You may save a few thousand dollars going this route, but may lose a few hundred thousand dollars if you are not dialing in on your strategy and numbers.
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3 January 2025 | 2 replies
I saved up the down payment for a few months and have a few remaining as emergency funds.