Updated almost 6 years ago on . Most recent reply
BIGGER DWN PMT=MORE CASH FLOW
HELLO FRIENDS!!
Does this sound like a good deal??
SF 3/2 price $160k, down pmt 20%=$32,000. Rents for $15000, cash flow $500 per month after paying mortgage, taxes, insurance and putting a couple hundreds aside for repairs. I plan on managing this property my self. Good location A type neighborhood. I have only done FHA before so the 20% dp is new to me, but I feel like it's worth it.
Most Popular Reply
20% is pretty standard. And yes more down will lead to more cash flow but in theory a lower ROI.
Not sure you were seeking this advice, but IMO you definitely will not be cash flowing $500 on that property.
Gross monthly income - 30% (vacany, maint, and capex) - (PITI) = true monthly cash flow.
So $1500 - $450 - PITI = your true long term average monthly cash flow.