So I right now I have 3 proprieties, which all together makes me like 1000 cash flow each month. Right now my bank will not give me another loan cause My income does not stay under 40% so I am buying contracts homes.
I been giving a offer to buy two homes for $110k with 13k down and since on contract its 8.5%. Then I will need to put in 5-7k in them depending on how badly the water issue is in basement, but need pumps install or might just need the outside landscape touchups.
Both homes together on the city accesser show up little more then 150k. with about 2500 in taxes per year and Ins would be around 1800 year for both.
Should I get them or pass? I don't see getting any cash flow in them but still not sure if they are good idea or not.
If an investment property cannot cash flow, it is a bad investment no matter how cheap you get it. If a property cannot meet the 50% rule, then I recommend you pass on it and keep looking.
In addition, if your current income, both from your job and your rentals, does not meet minimum lending guidelines, you need to consider your risk tolerance. If you spread yourself so thin that you do not have any reserves or excess cash flow, you are risking not only all of your investment properties but also your personal residence as well. A 3 month vacancy or a replacement furnace could create such a financial hardship that you may not be able to get out from underneath.
IMO, it is better to take real estate investment slow and steady than risk more than you can lose.
What is the 50% rule?
You can find out all about the 50% rule by searching for it in your search bar on bigger pockets and reading some blogs.
Keep in mind, the tax assessment on a house means nothing when you are assessing your after repair value. It seems that, by mentioning it, you are giving that some clout in your decision making.
Always get an appraisal. That is much different than an assessment.
Sorry for the delay. To save space, I will refer you to an article that I have written on the subject here within BP. Here is the link:
Let me know if you have any other questions. I will do my best to answer them.