All Forum Posts by: Lana Lee

Like Lana Lee said, you can get a fixed rate HELOC too. I'd prefer to get a HELOC, btw Lana Lee that is an awesome deal on the rate! What bank did you use?

I'm not sure of your exact question yet other expenses would be repairs as needed, marketing for new tenants.  If you are making money that is the key to me.  I need positive cash and I look for other metrics. You are under 1% (rent to purchase price) where a comp at 255K might be 2,550 in rent or more (1% or more).

Lana Lee - net operating income

Lana - it is 1% of the total price.  Also even if the cap rate meets your required number you still need to look at comparables.  For example you want an 8% cap rate or better.  Investment 1 has a 9% cap rate - this meets your number however the comparables that SOLD around investment 1 had cap rates of 12, 11, 13, and 10.  So you do not have as great a deal as you think.  11.5 is the average cap so you are over paying.  Yes you may still make money on the investment yet you probably could have gotten a better deal and if I buy from you I will be buying at the 11.5 or better cap rate price.

If I understand correctly, if you sell a property after you have depreciated over 27 years you will pay tax  (more or less) on the full sale price. Paying that sucks, but the good news is that over those 27 years your tenants paid off the mortgage, so you just end up with a smaller profit. If that's correct it doesn't seem so bad to me.

I know that house hacking is a good decision but I’m not referring to that.

The question is: if you had a choice to buy a house and be in debt for 30 years, or pay a landlord rent every month, which would you choose? Why?

Why can’t I @ at people?

Al, I think you are missing a number. Does he work for a company?

I just took a 60k home equity loan at 4.75% to help with a down payment on an 8 unit commercial property. Originally, I was going to just do a HELOC and pay interest only payments. Due to my current situations and plans for when I might eventually leave my primary residence I opted for the Home equity loan at a 15 year fixed rate. I made this decision right when the last rate hike happened, I believe more are coming (HELOC is not a fixed rate). I'm happy with this decision. Also, I did not use my current mortgagee for the home equity loan. I shopped around a bit and the approval process was ridiculously easy. I literally talked to the home equity lender twice.