Things to consider for cash flow without a mortgage

Things to consider for cash flow without a mortgage

Investor · Clarksville, TN · Member since 2016 · 11 posts · 4 votes

Hello pocketeers, I am close to making my first offers on what will be my first investment property. The house will be paid in cash so I will not have a mortgage. Hoping to get help on items to consider when determining cash flow (property management, taxes, etc.) looking forward to hearing your feedback!

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  • Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    9y

    Taxes insurance maintenance, CapEx, management, utilities (if any),snow removal, lawn care...the list will vary depending on the property and your location and will all cost money. You need to have a grasp on these to help determine what your NOI will be.

  • Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    9y

    All John mentions plus vacancy and collection loss.  I usually figure about 7% total. Off the top from gross to get to effective.

    Congrats on buying with cash, Andre! Do you plan to keep debt-free or refi at some point?

  • Investor · Clarksville, TN · Member since 2016 · 11 posts · 4 votes
    9y

    thanks for the replies! I will keep those all in my figures. I do not plan to refi. I'm in the Flint, MI market and homes are so depreciated that I can buy very low and hold. Assuming market does nothing but go up in the next ten or so years I could put market if it's worth it, but strictly buy and hold at this time for such cheap prices.

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