All Forum Posts by: Amanda G.

@Alexander Gee, with your current numbers, do I understand correctly that you will cash flow about $85/mo after you move out? that's a small margin for a duplex. Scale of 1 to 10, how confident are you that you can increase the cash flow by the time you are ready to move out?

Refinances are not free, maybe run number to see if a new loan for 109k without PMI is going to improve your situation.

Good luck!

@Leslie Eason, talk to other experienced investors around you. if you do a conventional mortgage, you will need 25%-30% down and also want to have reserves for the repairs that always pop up at inconvenient times. 

I'm not looking at your calculator, but your logic is sound. Plus the holding cost of the money, which you might have rolled into the $45k rehab cost.

Congrats, Angel. Maybe consider the cost of hiring a professional, vs the opportunity cost of you doing it all yourself on weekends. That holding cost time is invisible when you start. Good luck!

Hi @Allen Smith,

If you have the 25% down, you will get the best rates and longest terms the way you describe. I did that for my first deal, and I don't regret using it to get in the game, even though it reduced my free capital for later deals. Some things you can only learn by doing.
Maybe be a little more conservative in your guesses for income increasing. unless you have an annual rent increase built into your leases, those may stay pretty steady with some big dips when you have vacancy which will hopefully be made up gradually by getting higher rent.

Good luck!

I have been very fortunate in my tenants so far. I also inform them that we do bi-annual inspections. Even the best tenants forget to tell you about minor inconveniences, and often don't notice the little things until they become big. I have no evidence, but I think the fact that I show up and make notes makes a difference.

Hi Lily,

These policies have a purpose, but I personally do not like them. They are a listed policy, meaning that the repair needed has to be one on their list, not a blanket covering everything. You will still have the out of pocket cost of the equivalent of a co-pay. In my area, that's about the cost of the repair itself for basic stuff. I'd rather hold my own reserves. That said, they are popular with first time buyers who are using all their cash on the downpayment and would be sunk if one of the big things (roof, HVAC, water heater) goes bad right away. I favor personal control and keeping my own cash reserves, but your situation might be different.

I handle some of Paul Thompson's social media, so I'm prejudice, but I like his podcast: https://player.fm/series/ready-investor-one
Also, www.affordanything.com for FIRE wisdom, including real estate

Hi Andrew,

Sounds like you are taking great steps! I'm down in Augusta. If you ever happen to be in town, shoot me a message!

Hi Skye and Lauren,
As you are noticing from your Dallas home STR's require much more day-tod-day attention. If you aren't going to be physically present, you run into a management issue- who is going to make sure that it is turned around and ready for the next person?

Banks loan on debt to income. They want to see the income to support their loan- and that is trickier, as you noticed, with short-term rentals. They are much more comfortable being able to see a lease with evidence of rent being paid. 
What is the main attraction of STR for you?
bad news- if you are buying as an investment rather than your personal residence, most banks are going to want 25% down. Shop around, maybe a local bank will give you happier news.
good luck!