All Forum Posts by: Bill B.

I don’t know if you have rc wiley there but I use them for appliances. They charge $59 for delivery and installation once per year. Divide by 5 - 10 deliveries and it’s basically free. 

Find a mortgage broker. I swear every broker I’ve ever talked to has offered 80/20  30 year investment loans. And that was a few years back when credit was “tight”. 

It doesn’t matter if you or your llc “owns” the property. The mortgage is in your name. 

Props to @Nicholas Aiola for actually answering a question as a CPA rather than the 1 sentence answers so common in BP....

“Ask your cpa”

“Sell all your rentals if you aren’t going to treat it like a business...”

Etc...

Thanks again Nicholas for adding so much to BP. 

If you’ve been a landlord over 2 years they will usually count 100% of the new lease/possible rent. Less than 2 years it is often 70%. The rental income is counted as real income and is usually even counted as better than it is. As they only count income minus debt payment (including property taxes/insurance) but often don’t include property management, or estimated repairs. 

I would do the upgrades at the end of the lease.  Either as an incentive to renew at a higher rate, or to help fill the vacancy faster. Think about how much more attractive a new appliance is to a prospective tenant than a 6 month old one is, it might as well be 3 years old, it’s used either way. 

An amortization app, table or website will give you the P&I (principle and interest) after you enter the amount borrowed, the length of the loan, and the interest rate. 

Take that number and add 1/12th of the annual property taxes (The T) and 1/12th of the annual insurance (The I).

And you have your PITI.

If that’s all there is in the book he should have listed expenses and mortgage payment as cashflowing out, and then rent and any other forms of income the property had (parking, storage, laundry, etc.) as cashflow coming in. His $9600 is his answer to how much money the property put in his pocket after it paid all its own expenses plus the mortgage payment. (Which is partially expenses, taxes, insurance and interest, and partially principle pay down. )

Yup. I hate owing money and love cash flow. I paid off our cars even though paying extra towards the mortgages would have been a SLIGHTLY better option. Gave us an extra $700/mo. 

@Jim D.

Hey Jim, my only experience lids was a short sale I bought in Aliante. It had a $10k lid/Sid  so I checked the box on the purchase agreement that said seller will pay any sids/lids. AND THE BANK PAID IT OFF!

Anyway, you should be able to get a current payoff amount and then use an amortization app to determine the effective interest rate. 

Yes you can write them off on rentals so you’re really paying a 10-20% less interest but it’s a cashflow item as well.