First deal down. What now?
I recently purchased an investment property in an Idaho college town in February of this year. The property consists of an over and under duplex and a single family home with an unfinished basement and a detached garage. The property has good cash flow and we are just about finished with the basement and other rehabbing. NOW WHAT?
The financials are as follows:
Purchase price: $392,000
Down payment: $117,100
Loan: $274,900 @ 5.00%
Now what we decided to do to capitalize on the properties income was to keep the tenants in the duplex and to finish the basement of the SFH. We charge ourselves rent for the basement and Airbnb the top of the SFH. Financials are as follows:
Rent from duplexes: $1700/mo
Rent from basement: $500/mo
SFH Airbnb income: $1400 - $4200/mo
Monthly expenses: $2522 - $2700/mo
A garage conversion was denied by the city because the total number of allowed units for this block is met. What would you do next to keep the ball rolling in this situation? How do you move onto your next deal when your DTI ratio is maxed out from a deal such as this? Thanks BP for getting me this far, now I just need to get an idea of the next moves!