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22 July 2024 | 3 replies
If so, should I be thinking about get rid of the property right away before the construction starts?
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22 July 2024 | 6 replies
When you break down the numbers by individual properties using the first purchased property as a templated for the additional properties purchased however, you will notice that the numbers being used in the example are not scaling correctly.It took me some time to figure out why the numbers were not scaling and adding up correctly but I finally believe I at least partially figured out why the numbers didn’t add up.By the end of year 3 the 3 properties are owned for the following lengths of time and reflect the correct numbers associated with that length of ownership (loan balance, equity, property value, etc).Property A - owned 3 yearsProperty B - owned 1 yearProperty C - owned 0 years, it will be purchased at the start of year 4But by the end of year 4 the properties should reflect the following years of ownership with their respective numbers associated with the years of ownership (loan balance, equity, property value, etc).Property A - owned 4 yearsProperty B - owned 2 yearsProperty C - owned 1 yearHowever the summary total numbers that were provided in the book for all 3 properties at the end of year 4 did not add up correctly.
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20 July 2024 | 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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20 July 2024 | 11 replies
Thanks so much, really appreciate the help and insight from those to have done VA loans and or know the inner workings of these Loans and what conditions a Property MUST meet in order to get approved.Just trying to save myself the time and hassle, of finding a property I like .....
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19 July 2024 | 6 replies
Implement Ratio Utility Billing System (RUBS)This article is a good starting point (link) or search BP for RUBSGood Luck!
21 July 2024 | 15 replies
I didn't like this location a few years ago, even though it was starting to turn.
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18 July 2024 | 7 replies
We purchased a house back in 2017 for 140k that is now worth approximately 265k. Current payment on it is around 900 with about a 4% interest rate. The expected rent is 1,600/ month. We purchased another house and a...
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17 July 2024 | 20 replies
But, it seems to me that this is no more of a commitment than signing a lease where you have to live there for a full year...My advice would be to focus on saving, saving, saving for this next year.
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19 July 2024 | 16 replies
Owning a vacation property in Hawaii has been a lifelong dream of mine, and it seems that this dream may also be able to generate some tax savings for me.I'm looking for a 2 bedroom or more condo in a resort-zoned area of Hawaii, specifically the Waikoloa Beach or Mauna Lani Resort areas which are already resort-zoned.
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16 July 2024 | 18 replies
@Kenneth LewisTo start in real estate, first learn all you can.