All Forum Posts by: Simon W.

Well, it depends on the location, but you're right.

OP said that it was purchased for $358K and now worth $400K in about 1.5 years the value appreciated roughly 12%, I think that's pretty solid.

But again, we do not know the full story behind this whole family friend girlfriend-sister-boyfriend-aunt-mom-niece situation

@David Garzon do you think you can get 20% equity within 6-12 months timeframe? Bank will need to see a consolidated Income Statement to make sure the DSCR is enough.

I see a lot of No No Nos. I agree to a certain degree.

Do you see it appreciate even more for the next few years? If so, I would take the negative cash flow while someone is helping out with the mortgage/equity. It's family to an extent since you have no real ties, just put in an agreement to cover yourself. IF you choose this route. 

Good Luck!

My suggestion is to buy a piece of property that you feel comfortable living in and then "hack". Run a simple calculation to see how much additional income you would need to essentially make your monthly payment in half.

Who is paying for utilities?

Put together a lease and make it about business, not just helping out someone.

At $1700 vs $1950, it is fine. Do not replace the carpet floors to save yourself the money. At $1700 you are losing $3k a year. Until you can rent it for more money and the profit can justify the replacement.

Did you work out the numbers if this property a good deal? What's the Net Income on a monthly basis? What's the monthly liability and expenses? 

How much is the housing there? Are you looking at duplex, tri, or 4? 

Are you doing the accounting for your own properties or for someone else?