All Forum Posts by: Carl Flint

@Filipe Pereira

Yes, that makes sense. People whom I debate this with are mainly saying that they'd rather not have the mortgage hanging over their head and for this reason they believe buying cash is the best option. What do you think about this?

@James Ma

So, basically what you're saying is that with leverage you have more of your own money to work with in other areas that can give you a ROI? Like, if I only spend 20k down and leverage the 80k (on a 100k property) then I can use the 80k cash that I have to invest elsewhere (stocks or even other REI)?

@Bill B.

Excellent explanation. So, it sounds as if an easy way to explain this to someone would be that with paying cash you're having all your eggs in one basket, so to speak. If you use leverage then it will benefit you more so than paying cash if you are looking at the next 10 years.

Is that safe to say?

@Cody Benedetto

Is there a limit to how many accounts you can have open with the same bank?

BP!

I need some help.

Today my girlfriend and I were having a debate on buying a property using leverage through a loan or buying a property outright in cash. I know that leverage is can be a good thing for investors if the numbers work.

I need help understanding so that I can explain the pros of using leverage to someone who has no knowledge of the real estate world.

Basically, I need an elevator speech on leverage and why to use it.

@Sarah West Haha!

No worries! I am a St. Louis native and a midwestern at heart. I only moved to California a couple of years ago.

But yes, I have a friend who owns a property in St. Louis city that I have to ask questions to. I just wanted to get a well-rounded approach to my dilemma. I have come to the conclusion that property tax on a 150k property should be around 2k annually.

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*This link comes directly from our calculators, based on information input by the member who posted.

@Sarah West

Yes. So, it varies from listing to listing. I have been using realtor.com. On the mortgage calculator that is built into the website it will give, what seems to be, a very low monthly number. For example, on a triplex I am looking at it says $93 in property tax each month that I guess would be built into the loan. This number seems low.

I could be wrong but aren't a standard range of property taxes anywhere from $3500-$10,000 annually?

Hello people of BP!

I have been running deal analysis for properties in St. Louis, Missouri. I am very new to analyzing and have never owned a property. So, some things, like property tax, are hard to estimate fairly. Are there any suggestions that you have for me to learn more on this? Is there any place I can go? Anything I can read?

My fear is running the numbers on a deal and thinking I have a good deal, based on the final numbers, but really just having inaccurate information that makes it look like a good deal that really isn't.

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*This link comes directly from our calculators, based on information input by the member who posted.

Looks like a good deal.