All Forum Posts by: Billy Au-Yeung

is this still available? Can you send me more info to [email protected]? Thanks

Still available? I am interested. Can you PM me?

Can you please send me some info to [email protected]?  Thanks.

still available?

still available?

is this place still available?

Can you send me the details too? thanks

What do you mean by "non write off" interest? The interest is deductible from your rental income.  I am using your $100K loan as an example.  

Scenario 1:

I assume you have $400K cash.  You paid 25% down of your $400K rental property.  Your initial investment is $100K.  In the end of the loan term, you have $300K equity in this property.  It is 300% of your return.  Let's skip appreciation rate and tax impact for now.   This is just for 1 property and you have $300K left.  You buy 3 more properties with the same scenario and in the end of the loan term, you have 4 properties that worth $1.2 million.  The mortgage payment is $1600 for a 30 yrs fixed term loan @ 5%. Say your rent is $2000 a month and you still end up having $390 in your pocket.  $390 x 4 properties = $1560 net cash flow in year 1.  

Scenario 2:

You use the $400K cash to pay off the $400K property. Rent is $2000 a month.  In 30 years, your property is still $400K since it is paid off on day 1.  You have $440 more in rental income per month than scenario 1 in year 1.

Remember, the rent is being adjusted upwards every year. If the rent is increased by $50 a year, you have $2400 more a year for scenario 1 but only $600 in scenario 2.  

In year 2, the net cash flow gap is already vanished and scenario 1 is getting more cash than scenario 2. 

What do you prefer?

Scenario 1: 4 properties worth $1.2 million with the ability to raise rent x 4

or 

Scenario 2: 1 property worth $400K with the ability to raise rent x 1

Real Estate Investing is about leveraging.  

hard money loan.  

Are you referring to $100K/year passive gross income? I think that's possible depends on the deals you get. I bought 1 duplex for $163K in 2011 and currently renting it out at $2200/month. I used the the equity from this duplex as down to pay for a $533K 4 plex in 2014 and currently getting $6000/month. Total gross rental income is $98K a year. The market is very hot in Seattle now and I have about $400K combined equity in these two properties based on today's FMV. The total down that I put for these properties was about $170K.