All Forum Posts by: Balaji A.

@Justin R.. Two valuable tips. Thanks

@Alyssa Czopor. Does your realtor work in Catskill area /Lake George ?If so, please share info. I would be interested in exploring as well.

@Sarah Giffin. Welcome to BP. You are at the right place at the right time. 

A wise man once said not to  wait for all the lights to turn green before you start  driving down the  5th Ave . Just start driving and the lights will start turning green. Sometimes analyzing tooo much or expecting everything to be perfect might work against us. Good luck 

So it costs you 98 k ( 28 + 42+ 28)? And ARV is 100K.

These numbers don't work in your favor. your cost should be 70% of ARV.

@Alyssa Czopor

Starting with a SFH/duplex is probably a better option. Once you get some experience, you could venture into vacation rentals.In might be difficult to find good cash flowing SFH in CT ( taxes and Insurance are higher than other states).you might end up with long distance investing. David Greene's book on Long Distance investing is one of the best.Among all variables, finding the right property at the right price and a good property management team would top the list. Good luck. Balaji

Vacation rentals can be lucrative but there are few extra things to consider :Larger down payment, higher interest rate,Insurance, and MAINTENANCE. It can easily turn in to a full time job. If you are 3 hours away, it becomes more difficult UNLESS you find a trusted manager/rental company- but that would eat into your profits. You could use VRBO etc but the reviews can derail the process. you have work extra hard to make the guests "happy" . As a newbie, it is better and easier to start with a SFH or duplex, which is not too far. Most important thing is to make sure the numbers work for you. Goodluck.

@Rey Tobar : Merchants Bank of Indiana is offering 1st position HELOC on rental properties with 25% down.

@Alec Hilliard :PenFed had a 75% LTV limit in TX. ( assuming you are buying in TX) ; Also watch out the rate. They have a floor of 4.75% and a cap of 18% !!!!

Can someone please clarify this?

If I buy 2 properties for $100,000 each

Both bring in a rent of $1000 /month.

For Property A, Tenant pays utilities and for Property B, Owner pays utilities.

Although both A and B  meet the 1% rule, the cash flow is very different.  (A>B)

DOES the 1% rule include utilities ?

That should work  I suppose. Best to check with bank.

@Alec Hilliard

Yes - it’s doable. Merchants Bank of Indiana. I believe they need 25% down