Can't make rentals cash flow without cash
I've listened to podcasts about using other people's money for RE investments, but once I figure loan payments, we can't make the properties cash flow well without more free and clear cash. Example: $990k 9-plex, gross rents are $7000/mo with room for growth, minimal expenses. It's a better than average deal in terms of turn-key, location, etc, and I realize we're below 1% to start. $90K cash, $500k from a comm lender at 7.2% + 2pts, $400k private lender at 4% no fees/expenses. Once I figure loan payments, it cash flows at about $275/m. With 6-8% rent increases over 1-2 years, we're at $580/m. Hardly seems worth it. It definitely works better if we get all private lending at 4% (that'd be nice). Maybe we're not finding the right kind of "other people's money?" Thanks - appreciate your input.
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