Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,351 posts, read 8,569,440 times
Reputation: 16698
Advertisements
Quote:
Originally Posted by Tac-Sea
All of mine are in King County minutes from Seattle. Just bought two last summer, 350K each, 25% down. My cash flow is $630 a month, not bad for the first year...now watch that grow over the next few years....
In your example you're putting 57% down....you only need 25%, 57% is a huge waste, you could buy two properties for that...
The mortgage payment would be about what you quote, even less, if you did put that kind of money down, but you don't need to. If you buy right they cash flow well with the 25%.
Agree on keeping reserves. For one rental you don't need 200K in reserves though...You should have 6 months for all rentals combined, when you eventually buy one.
What is the total amount you keep in reserve and how do you hold it?
I'm about done in the accumulation and paid off phase. Now I'm building reserves.
Plus, even just off the cash flow alone, one of my rentals has increased in rent about $500 a month in the last four years. Buying a lot of rentals after selling a house right now will leave only $250-350 a month cash flow per month but after a few years, lookout, they cash flow like crazy as the rents rise.
Right, it is all about timing though. You can go through a long down period too where your properties lose value and you have to ride out the storm.
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,351 posts, read 8,569,440 times
Reputation: 16698
Quote:
Originally Posted by ufcrules1
Right, it is all about timing though. You can go through a long down period too where your properties lose value and you have to ride out the storm.
So true. That's why I'm leary of counting on appreciation. As I said it's a bonus. The cash flow is what is important to me.
I realize the properties can swing up but then back down. It all depends on when you need to draw that appreciation and where you are in the cycle.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.