All Forum Posts by: Daniel Sabato

@Matt Nico Matt can you explain the home equity line of credit a bit more? I just bought my first rental property & so far it s gone very well, I should have a 2nd very soon but naturally I’m wondering if there’s anything I’m missing or could be leveraging to be smarter about this & continue building.

@Corby Goade Thank you Corby!

@John Warren Thank you that makes a lot of sense. Are you essentially playing a waiting game for the property value to appreciate or do you actively make updates and such to bring the value of the property up?

I always hear people talk about refinancing a property, not for a lower rate, but to cash out their equity? Can someone explain how this works or give me an example? I don't understand how it works. I do understand refinancing with a lower rate.

@Mike McCarthy Thank you that helps. I was confused because I paid my insurance up front for the year, & then my mortgage plus interest was listed, but then I see this other charge for escrow which is taxes+insurance I believe. But you’re saying that escrow payment is property taxes + a little extra for insurance to have on hand? Just making sure I understand this correctly

Can someone explain how escrow works? This is all new to me. Let’s say it’s a situation where your principal & interest payment is 200$ per month. Property taxes are 90$ & your insurance is 600$ for the year (which is generally paid up front for the year I believe). What is escrow? Is that a totally separate amount you need to pay to your lender? What’s it for?

What type of insurance do you need as a landlord? Do you still need it if you use a property manager, or do they handle that side of things generally?

I'm wondering how liable a landlord can be when they use a property manager or when they don't use one. This is extreme but what happens if a tenant dies in a fire on one of your properties or something along those lines? Can you be sued at all? Just financially? Criminally that would include jail time?

@Adam Tafel located in NJ but investing all over. I had $175 as my minimum cash flow that I’d be happy with but I agree with you both, thanks!

What’s the minimum cash flow $ amount you’d accept when purchasing a rental property? I know the property itself will more than likely appreciate over time & when the loan is paid off down the road the cash flow will jump, but initially what’s the # a lot of you are looking for to make it worth the up front ivestment?