Hey guys, I’m considering withdrawing the equity from my current home for a down payment and purchasing a duplex or fourplex, renting out my current house and moving in to one of the units of the duplex/fourplex.

-Gross Monthly Operating Income3,291.75 Monthly Operating ExpensesProperty Management Fees347.00 Repairs and Maintenance200.00 Real Estate Taxes250.00 Rental Property Insurance298.81 Homeowners/Property Association FeesReplacement Reserve50.00 Utilities150.00 AdvertisingMonthly Operating Expenses1,295.81 Net Operating Income (NOI)Total Annual Operating Income39,501.00 Total Annual Operating Expense15,549.72 Annual Net Operating Income23,951.28 Capitalization Rate and ValuationDesired Capitalization Rate8.00%Property Valuation (Offer Price)299,391.00 Actual Purchase Price167,500.00 Actual Capitalization Rate14.30%Loan InformationDown Payment33,500.00 Loan Amount167,500.00 Acquisition Costs and Loan Fees6,000.00 Length of Mortgage (years)15 Annual Interest Rate6.690%Initial Investment6,000.00 Monthly Mortgage Payment (PI)1,476.66 Annual Interest11,002.25 Annual Principal6,717.63 Total Annual Debt Service17,719.88 Cash Flow and ROITotal Monthly Cash Flow (before taxes)519.28 Total Annual Cash Flow (before taxes)6,231.40 Cash on Cash Return (ROI)103.86%

In reality, I’ll be able to rent out one of the two units, and I will live in the other unit with a few friends, so I’ll actually be living for free & positively cash flowing, with a good cushion for potential issues/disasters, but I know that’s not how it’ll appear on paper unfortunately. 

Within the last month, we closed on a traditional 30 year fixed mortgage based on W2 income on a property in TX (we actually lived in a different state).

I wrote down all of the books that were people’s favorites from each podcast, but I believe there is actually a book list on the site.

This place is actually a homerun cash flow numbers wise.. after utilities, taxes, insurance, capex,etc..

I've seen people get screwed where nothing was actually complete rather everything was almost done....

The funny thing with reserve studies is that any project that at peak reaches 70% is actually considered well-capitalized.

Here is the scenario I was thinking about, but wasn't sure how it actually works. 

I actually ended up just leaving everything because I got lucky.I guess if I was intending on keeping this longer I'd probably do something other than carpet, but I rather put down new flooring as I go to sell it vs now to get an extra 100-200 mo..