All Forum Posts by: David Luna

@Jaime Sepulveda, @Brooke Noth, @Jonatan Barbera..... Thank you all for your input. Seems refi is the way to go (wish I would have done it a few months ago before rates started rising - oh well). Off the top of my head, not sure of annual property appreciation rate Brooke. Jonatan, home was built in 2009 and similar in condition to other neary homes renting for that much so I do believe it can rent for that much. 

If any of you are aware of any San Antonio REI clubs or groups that would benefit a new investor, id appreciate any info you may have. Once again, Thank you for yalls input. Have a great evening : )

I have an exiting single family home (currently live in) that I am considering converting into my first rental (plan to purchase new home for me and my family to live in). These are the facts:

- My neighborhood has average rents of $1,400 - $1,450 (using $1,400 to be conservative). SAN ANTONIO, TX AREA

- Current mortgage payment = $1,150 ($111,000 left for 22 more years - 5% rate. County assessed value = $170K)

- Monthly Expenses calculated: HOA $30; $210 for repairs, cap ex, and vacancy (using 5% of gross rents for each or $70 each); Property Management $140 (10% of gross rents estimated); and Current mortgage payment of $1,150 which INCLUDES taxes and insurance). TOTAL EXPENSES = $1,530 (Plan to have tenant pay for utilities).

- Monthly Cash Flow = -$130

With an estimated negative cash flow, should I not be considering this home as my first rental? I know I could refinance this current note back to a 30 year mortgage to reduce the monthly PITI payment, but considering that I have almost $60K in equity, is this a wise move?

Any thoughts on the above situation? Or anything I may have made an error on regarding the above information?

Thank you.

Gentlemen, Thank you so much for the feedback. I really appreciate the insight. I am fairly new to BP, and like it so far. Think it may be time to go Pro! I’ve been doing research over the last 5 months. Think it’s time to take action! 

I may purchase another home this year for me and my family to live in and convert current single family home (purchased 8 years ago) into my first rental. Normally for the Cash on Cash calculation, I would need to determine how much my down payment, closing costs & rehab costs were to calculate my total investment. My question: is this something I still need to calculate for my situation? I mean would I need to go back 8 years and remember how much my down payment was along with closing costs at that time? In addition, would I need to calculate How much principal payments i have paid over the last 8 years and add that to my down payment and closing costs in order to calculate my total investment to date?

Hi, my name is David. I am fairly to BP and am on the fence of upgrading to PRO. Is the PRO membership able to be cancelled at any time? I'm hoping that if I do upgrade, I will be so satisfied that I find it well worth my investment. Maybe I'm just a little sceptical.