All Forum Posts by: Dror Brumer

Hi All , 

I have a rental property I bought with LOC , The LOC rates are very high and I was thinking to take a mortgage on the house with a cash out option to invest in one more property

When I am running the numbers the mortgage rates will eat all my cashflow ( getting a negative of $68 a month instead of $200)

House cost 367K - House estimation 400K  - current loan amount is 255K  - looking to barrow 300K at the new loan   

What am I missing or is it due to the mortgages high rates ?

Thank you @Ricardo R. for the help, it sound right and almost the same as I am doing in my rentals properties in the US 

Thanks @Nathan Gesner , @Ricardo R.

The property is in Israel , and It is coming empty - no appliance - tenant brings everything to the house and pay for heating cooling, water gas electricity tax, HOA. The house is made of cement (Also cement roof) , and it is a 4 floors building - Still in warranty from the contractor (In Israel they have a 7 years warranty and they will fix any damage to walls roof and so, Also the one in the 4th floor is responsible to the roof after the warranty ). The 7700 Mortgage include the house insurance and this is the only expenses I have to the property. If the tenant will ask to move before the end of the contract he needs to provide a new tenant that will be approved by me and will pay the same cost and the tenant will pay all other costs due to the switch - Or he needs to pay til the end of the contract The tenant provide a "bank liability cheque" meaning the bank is holding 25K from the tenant in case there is any problem / payments misses up till 2 month after the contract ends that can be used by me.
If I sell the house, the tax I will need to pay in both Israel and the US will be more than 35% of the house value (again different tax lows), and yes I might go back in a few years 

Having say that I do understand that I need to set money aside for small maintenance and vac'  

How much do you suggest to set a side in this case? 

Thank you all for the answers 

The situation here is a bit different- this is my old house before I relocated to the US and wasn't meant to be an investment when I bought it. Also there are no taxes, the tenant pay the taxes and all utilities ( I only have a monthly insurance of 200), BUT now it is an investment and need to start paying me back 

I think I will be OK with 8500 - it will get me 800 of cash flow and it will be in the "middle" between the market and what the tenant wanted - and if he will not take it - I will have 3 more month to find a new one 

What is the LLC cost estimate - consider all the hassle ?

I know it is not the same between the states and amount of properties 

so let's say One rental property and the LLC in Nevada ( or any other place )

Hi all, 

I have a rental property (Out side of the US ) current rent ( 7000)  was locked at the past 4 years . I took a look at the real estate sites in that country and seeing houses the same as mine asking for 8800-9000 per month. I talked with the tenant he said he will stay if the rent will be 8200 in the first year and 8500 the year after. Mortgage is 7700 (today I am cash flow negative)  If I will take the house to the market it will cost me 8800 for the real estate agent and probably one month the house will be empty so total lost of 16500.  consider I will get 8800 in rent - it will take me almost 27 month of rent to overcome it ( consider 16500/(8800-8200) ) 

It will be great to see what do you think - take a lower rate but save money on the agent and lost of Mortgage payment  or get a high rent that will cost quite a lot of capital today from my side 

I am using Regna as an agent in GA - she helped me with 2 rentals  

Regna Johnson / Licensed Agent

3745 Cherokee Street NW, STE 101

Kennesaw, GA 30144
Phone (678-239-0087)

Fax (770-424-5511)
www.dickersonagency.com