First rental $1,300/month

[Jairo Serrano]

First investment property currently rents for $1,300/month with principle, interest, tax and insurance and mortgage insurance at $1,056.35/month. Because of it’s appreciation we now have 20% equity so we want to get an appraisal to get rid of mortgage insurance ($101.24/month). We pay $75/month for landscaping. After we get rid of mortgage insurance our remaining gross profit will be right around $270/month. By summer 2019 I plan to have about $30,000 in saving plus hopefully can get another $30,000 through refinancing to use as downpayment for new property and repairs. Hope to generate at least $500/month gross profit from next property. Thoughts or suggestions?

[Anthony Wick]

He bought the home and lived in it first, and is now renting it out at higher than his PITI. Is it the "ideal" BRRRR? Well, no. But also not sure why the critiques are so harsh. Lupe is on fire on the blogs, and not one kind word can be found. Actually, most of Lupe's comments are quite mean and rude.

@Jairo Serrano I'm assuming this isn't your business, and you are merely renting out your main residence after you moved, and making a few dollars today while you do that. Nothing wrong with that. Sometimes BP can be a harsh place to be when you aren't making the profits of the big boys. It's ok. I'll ask this though; if you refinance what are the real numbers? The interest rates have gone up. For example, my duplex interest is 3.75% locked in for 30 years. At today's rates, refinancing to get rid of my PMI (MIP for FHA loan), my monthly payment would actually go up!! Also, do you live close to the house now? I'd get rid of that $75 a month landscaping and either do it yourself or write into your lease that the tenants are responsible for all landscaping/mowing of lawn. And, providing you do not need the cash today, I'd sock away every penny of the gross profit into a reserve account.