All Forum Posts by: David Zheng

all great answers! Thank you guys!

definitely learned  a lot more about what risk tolerances and goals other people have!

@JD Martin that's the kind of answer I like to see haha

Personally my first 2x 100k 2b/1bath condos that I put 30% down each are cashflowing 450-475 a month after all expenses.

but I feel like I was just spoiled from the get go and now even $200-300 cashflow properties seem low....makes me want to ask the community for their own thresholds to hopefully ground me into reality haha.

well this post was more opinion based rather than a universal rule of thumb...haha

Hi all,

Just had a quick question on what everyone uses as a rule of thumb for rental cashflow?

just to make it simple... I'm talking about financed (20-25% down) 2-3 bedroom houses/condos that are in the 100-150k Range

What kind of cashflow after mortgage, interest, insurance, HOA fees, vacancy, repairs, etc etc. are you looking at per month?

$100 a door? $100 a person?

I know @Brandon Turner wants $100 a door, but after doing a lot of online browsing I see a lot of people requiring and being successful at hitting $500 a door on 100k houses.

Just taking a poll to see where I want to place myself

Thanks! 

your numbers generally make sense but don't you have to include PMI, since youre only putting down 5%?

Honestly in any case, you should have skin in the game before an investor decides to go with you. or you better have a lot of assets in your name that can be used as collateral if you want to go the no money down route. Every private lender is different so you'll have to negotiate on a case by case basis.  Personally a high interest rate and a decent chuck of the profits would entice me to invest in you especially if you aren't putting your own money into the pot.

I'm also with Andrew on this one...not sure if I'm getting the numbers right.

I'm guessing you'll be living in the 2 bedroom and renting out the 3 bedroom? I don't really know what rent is in Mass but with a 95% mortgage at 4.5, 1% a year PMI, and taxes I'm already coming out at $2700 a month. I'm not even including taxes, water/garbage.

Mind sharing me how your analysis numbers are as well?

Thank you @Roy N. and @Charles Morgan!

Could you elaborate more on the decision and timing of deducting depreciation? Do I have to pay that back in taxes once I sell the property or something?


Everything I have is a long term buy and hold rental, so I'm not planning on liquidating them ever.

Quick Question

Are you taxed on rental income aka the total rent you charge per month or are you taxed on the cashflow after mortgage, interest, insurance, HOA fees, utilities, fixtures, etc. etc. are all paid?

Like if I make $3000 on rent per month, but my total costs are stated above are $3,050, do I take a "loss of $50"?

What happens when I break even?

Thanks!

I've tried this method several times and have only landed funding from close friends and family who know and trust me. Its too easy to run off with $8000. Even a contract for this amount wouldn't really be worth it because suing you for stealing it will cost probably up to half the amount.

Honestly at $8000 you should have the money yourself or get that from relatives. It's not really worth getting an investor for.