All Forum Posts by: John G.

Thanks @Anthony Angotti. I care about a refi, in that I'd like to reinvest the equity into another property at some point. And I do know that the forecasted rent is pretty much what we're going to get. It's unlikely that someone will pay an extra $50 just because "the concrete is new by the garage". I'll be putting money aside for CapEx every month anyway, I suppose when this get's REALLY bad years from now, I'll have the reserve to fix it anyway (or at least a portion of it). I'm thinking now that extra 9Gs will be better used toward another property...

Ok. I'm slowly approaching close date on a turnkey property. Price was $91,519. Bank appraisal came it at $98,000. Looks like I got a good deal. My question is, while it's being rehabbed, I was considering having them re-pour the cement in the back driveway area and parking area next to it. It's cracked and weeds are growing out between the seams. Nothing major. They got bids and one came it at $9,000. Should I have them fix this? I read I could only deduct $2,500 if this. True? Would I force appreciation with this repair? Or does forced appreciation come only with improvements? Or should I save that $9,000 to put toward my next deal? Would this work justify a slightly higher rent?

@Harjeet Bhatti. Good feedback, thank you!

@Matt K. How so?

Great info guys! Still struggling, but I have a better handle on this now.

It just occured to me that that $22 could just be covered by a rent increase in a year or two anyhow.

You're right. Forgot about equity, as minimal as it might be.

Here are the numbers presented by the lender. I'm trying to figure out if one of these presents the absolute best compromise.

Rate: Mnthly : # of points : cost of points

4.250 : $360 /

3.121 /

$2,285

4.375: $366  /

2.558 /

$1,873

4.490: $371  /

2.076 /

$1,520

4.500: $371  /

2.006 /

$1,469

4.625: $376  /

1.435 /

$1,051

4.750: $382  /

0.987 /

$723

Paying the $723 is the least that I'm going to do.

Well, I DO intend to purchase another property in the next few months. I suppose I could just save the $1562 for that deal. Math isn't my strong-suit, so I don't have a clear path in my head as to where this $1562 would be put to its best use /get the best ROI.

Yup, longer than 72 months is the plan (but I guess you never really know). Appreciate the feedback @Sean Autry

Details... I have a quoted rate of 4.75% with paying just a hair under one point or $723. And have the option to buy down the rate to 4.25% by paying 3.121 points (an additional 2.134 points / $1,562 cash at closing). This is a 30 conventional on a SFR rental property.

Recoup time of cost of Discount Points: 72 months (6 yrs).

Additional monthly cashflow: $21.75

My investment strategy: Long -term buy and hold. Goal #1: $100k annual in "passive" rental income.

I'm leaning toward buying down the rate since I plan on holding on to this longer that the 72 months recoup. I think it's a good idea, but I'd like some feedback from experienced investors since this is my first investment. Thanks!

Dude. You're right on the money with rent estimate. And thanks for the info. @Ramon Jenkins