All Forum Posts by: Craig Alsup

Gotcha. I'm just not sure how losing money each month on 2 properties really helps us over having a small positive with this property? I should say that we do not need the cash each month, we just need it to not cost us, to get tax benefits, and to build equity. 

Also concerned that properties in my area are expensive compared with rent. If we sold our current house, we would have about $170,000, so $85,000 for each new house. For that to be 20% down on each, we could buy 2 - $425,000 houses roughly...But those would likely only rent for maybe $2800-$3000 monthly each. The notes on each would be well over that, so we would be in the negative each month...  

What am I missing? 

We were considering pulling some equity out of our current house and buying another house with it, but the issue there is that then the mortgage note on the current house would eat up more than 100% of the cash flow estimate...

Okay, I was off on some numbers: 

insurance is $170.58, but that will go up with no homestead exemption???

PMI $51.74

Principal and Interest $958.44

Property taxes $539.53

So maybe come out about $100/month better? So maybe $335/month. 

Considering looking into medium-term rental as well, thinking it could rent for quite a bit more than $2500/month with that. 

Thanks so much for your help! 

Hi! My wife and I own a house that we've lived in for 6 years. We are now moving to a new house and putting this one up for rent...hopefully. We are trying to use the calculators, but having trouble figuring how to factor in the fact that our house cost $229,000 when purchased, we now owe $180,000, and the value is now $350,000 or so. 

We expect to rent it for around $2500 according to the surrounding area. Insurance is $2500/year, Taxes $6500/year, 3.25% interest rate 24 year loan remaining. 

HOA is around $40/month.

Any help in plugging all that in and getting correct numbers?