Updated over 9 years ago on . Most recent reply
First Purchase and Crushing the Cash Flow!
I'm the kind of person who likes to celebrate the small wins! I know I don't have a huge portfolio yet (only 1, newly-acquired, SF rental home), but I'm so encouraged by what I see already. This BP community has already taught me so much and I'm so thankful to have a wealth of knowledge here at my disposal! Just wanted to get that out of the way!!!
The Numbers:
Purchase Price: $72,500
Mortgage: $58,000
Rent: $1350/Month
PITI: $700/Month
H2O & Garbage: $50/Month
Repair Savings: 10% or $135/Month
Anticipated Net Cashflow: $465/Month or $5,580/Year
With the standard acceptable amount usually being $100-$200 cashflow per unit, I'm encouraged to see that I'm in a market where I might be able to easily surpass that! Also, $58K is a small loan and I anticipate killing it quickly. When I remove mortgage from the PITI, I love that this teeny tiny, free-and-clear home will throw off almost $800/Month.
T-Minus 7 years until my retirement goal! One step at a time!
-Pete
Most Popular Reply
first, congrats.
second, do NOT kill your loan. you get tax benefits AND somewhat of an insurance against a lawsuit. everyone wants a free house, not a house that comes with a LOAN against it.
third, i have 30 of those same scenarios.
keep it up.