So I have an extra $40 a month in savings combined for taxes and insurance.When I posted this example I stated $400, but more accurate cash flow number is $480 plus the little extra saving on insurance and taxes I will be breaking almost even on the 50% rule.

All 3 of those elements combined with EBB can produce very high electric bills.

We know that it is not worth $210,000 since it hasn't sold at $200,000.If I am using debt capital I prefer a return of 3 percentage above my cost of capital.

They are looking at credit rating and debt to income primarily but I think having all your checking and savings might be helpful.

Let's look at it this way also.2,400 X 12 = 28,800 a year. 28,800 X .40 (60% costs) = 11,520 NOI before yearly debt service.So 115,200 sales price at a 10 cap.

If collection attempts have stopped, the note become a "stale" debt, as they may be viewed as an abandonment of the loan by the holder over time, they will be uncollectible.

In this example case the lien is extinguished and no unsecured debt would not exist either.The senior mortgagee would still have to foreclose.

Hi David,A cash out refinance on an investment property will generally top out at 75% LTV and CLTV (combined LTV).

In fact, I am always dishing out advice to the "young bucks" to never jump into your "forever" home" because it will just keep you "forever in debt!"

Here are the things I look for in an RE investmentCash flowAppreciationAmortizationTax shelterOne or all of them combined are your friend.