All Forum Posts by: John Moon

Welcome to BP. It's a great community of very knowledgeable and helpful people. I'm also a new investor but haven't purchased any property yet. Really proud to see new investors taking the dive! 

Time to take action!

@Jim Adrian

@Jim Adrian this includes vacancy and repairs. Although I put down only 1250 for cap expenditures per year, b/c mostly everything is new/er. There is still a big difference paying down 15 vs 30 at the same amount (e.g $600 /mo). The 15yr will win out due to interest rates. 

@Chris Masonthese are great insights. Yes, he is making these recommendation after owning 2 homes himself. His main concern was paying down debt and owning the place as soon as possible. He wasn't an investor. When you get a chance, could you explain to me the reasoning behind why it's easier to qualify for future mortgages? I don't get it.. :)

Thank again guys for the great perspective! I'm definitely going to use this information I gained to continue develop my real estate intelligence. 

Hey folks,

I got a deal thats looks pretty good in terms of numbers. Let me know if you think other wise.

On a 30 yr loan

downpayment: $19,400

total cash outlay: ~$25,800

monthly cash flow: $297.18

yearly cash flow:$3,566.16

COC return annually: 14.04%

On a 15 yr loan

downpayment: $19,400

total cash outlay: ~$25,800

monthly cash flow: $106.18

yearly cash flow:$1,274.16

COC return annually: 5.02%

The down payment is high (almost all my money) and I won't have much left after buying this property. 

Refinancing

People talk about refinancing to get their investment cash back, but this property is already move in ready with new appliances so I think it was priced accordingly (although I did buy it less than listing price). How would refinancing work in these cases? 

loan year

My dad is pushing me to get a 15yr loan instead of 30yr (b/c of the amount of interest you would be paying with a 30yr) also the equity you get with a 15yr loan is significantly higher and it starts pretty much from the first payment. If this is the case wouldn't it be better to go with the 15yr for a bit and than refinance it when i have more equity in the house? I feel I would be able to pull out more money sooner than if I go with a 30yr. What do you think?

Thank you for the help!

I've heard the same thing about closing costs. 2% for investment properties and around 5% for owner purchasing. 

Wow thanks for the great replys. I'm feeling better about the age now. 

One thing that everyone seemed to mention is the quality of the structure. Would this be something an ordinary inspector would be able to judge or something I can look at and tell by visiting the location?

Thanks again!

Hi guys,

I'm looking at a property in the new jersey area. It has good cash flow ($351 per mo) and is in a decent neighborhood (good middle /high schools). 

The rent updates are 

- (50 year) Roof -- assuming the roof should last 50 years?

- 4 yr old high efficiency a/c

However, the place is 93 years old. I read that houses typically live around 100 yr (+/-). financially it looks pretty solid with the cash flow but i'm scared to buy a house this old. Because of the house, walls and other parts breaking down. Am I over thinking this?

Thanks for your input!