All Forum Posts by: Alex Stredicke
Alex Stredicke has started 1 posts and replied 5 times.
Originally posted by Ken Kim:
I am just beginning to evaluate properties and trying to see what everyone means by you losing money monthly.
I am assuming they are applying the net operating expenses and such and saying that the $200 a monthly cash flow is not nearly enough to cover your operating cost.
That's what I'm assuming as well. Its $800 total cost per month, so insurance included.
I completely realize a 30yr mortgage is a very long time. The reason I went 30 instead of anything else is because as long as the house is rented, I'll clear $400 a month after my payment and insurance. I already pay $1k on my 15yr mortgage (min $800) so I'll use the extra cash to help pay down my 15yr, then when that's paid I plan on using all the income (2k) to pay down the 30yr. I'm just not sure if I should go about things like that, or instead save the extra income for a bigger down payment on another place.
My end goal in the whole thing, is to have some properties paid off and just keep collecting the extra income. I'm not trying to get wealthy (although it'd be nice) I just like the idea of owning homes, and making money without having to physically work for it. That being said if I can make a good sum of money selling one of my homes, I would absolutely do it. I was thinking maybe a du or triplex may be in my best interest? Or looking into buying out of state.
So your talking flipping? The first house apprised for $175k and was a HUD house. I thought it was a great deal. The one I'm in the process of closing on, should apprise around the same if not a bit more. Both places sold in 08 for $125k more then what I paid.
I'm 23 and live in whatcom county WA. I just bought my second rental property, in fact its closing on October 1st. My question is now what? I'd like to keep investing in property, but I'm not sure how to go about it. My first rental I bought for 131k with 40k down 1.5yrs ago, and have had renters in it for all but the first month. It generates 1k a month, and my mortgage is about 800 after everything (3.5% 15yr). This second place Im buying for 136k and 30k down on a 30yr contract. Again it will be rented for 1k a month. So should I start paying down the first house? Or continue buying? How should I go about getting loans? Any advice is greatly appreciated.