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All Forum Posts by: Chaim Mal

Chaim Mal has started 4 posts and replied 7 times.

Post: Facts about starting out

Chaim MalPosted
  • Posts 8
  • Votes 21

My initial thought was that if a property doesn’t hit the 1% rule it is not good…that has recently changed since got in thru some posts here. 

Now my question is do you purchase a property for break even cash flow +appreciation or try to get some cash flow and have appreciation as the icing ?


secondLy it seems that getting a mortgage in my shoes would be relatively hard. How can I maximize my budget to the answer from question 1. As it seems if I am going for near by I won’t be able to purchase 

Quote from @Dani Beit-Or:

@Chaim Mal 

Okay, so about three months ago, I purchased a property in the Phoenix area for $360k. The market value seemed to be around $450k, so right off the bat, I had about $90k in equity – a pretty good deal, right? The appraisal for the mortgage even came in higher at $470k, so no complaints there!

Right now, the rent basically covers all the expenses, so for the next couple of years, I'm pretty much breaking even each month.

Now, here's my thing about cash flow. I definitely like it – it feels like a safety net when you're investing. But let's be real, sometimes the monthly cash flow is peanuts compared to how much the property can go up in value, the equity you build as the rent pays down the mortgage, and the tax breaks and depreciation. If you only focus on cash flow, you could miss out on some bigger gains.

Back to my Phoenix place. I'm figuring that over time, the rent is gonna creep up. I'm hoping to get to maybe $100, then $200 in positive cash flow, and even more in a few years. Plus, I'm keeping an eye on interest rates and hoping to refinance in the next one to three years and maybe drop my rate by a percent (hopefully more). That would totally change the cash flow picture down the road.

For me, it's about seeing the whole picture and having a plan, not just fixating on the cash flow right now without thinking about the future.


 I see what your saying, however if not cash flow then what should one look for in owning property. Because if there is negative cash flow then it would be  Appreciation but what happens if there is a problem or repair needs to be done ?   

@Eric Fernwood thank you for the insights. If cash flow isn't going to be a priority, then how will one maintain a property if there is no income? As well how would one gauge a market to see if it will appreciate and continue to appreciate at a steady growth? 

I have created two posts in the past day or so and they both are providing mixed information. 

the problem being in my market (Brooklyn ny) the lowest house is 800k and rent is generally 2000-3500 (medium) 

the second problem is I am a college graduate with a part time job and low income so getting a 800k mortgage is almost a no. 

so if I look at out of state the pricing is generally what I have saved up and I can just buy it with a low down payment but it's not near by and I can't manage it or do I stay local able to manager it but pretty much not able to do anything until I have some cash available? 

my next strategy would be house hacking but even then my market seems too high and I would still need to get approved for a loan 

Post: Looking for experienced investors

Chaim MalPosted
  • Posts 8
  • Votes 21

Hi all,

I am a starting out investor looking to chat with some , who are in my area and have some experience in this field. 

I generally just have a couple questions about mortgage rates and rent to price ratio for our area. and possibly which strategy is best for our state

Thanks all

@Nicholas L. Thank you for the advice. My question is most if not all properties near by don't hit one percent rule.  So I would need to venture out to nj or pa that still leaves this as a question. How can I know more about a market ?  

Hi all,

I am currently in Brooklyn ny and it seems that my area everything is way to expensive to invest in ( if someone has any information that would be great on how I can invest here) although if I were to purchase out of state how can I gauge the market and understand the situation/areas ? What do you recommend for some one out of state