All Forum Posts by: Marcus Johnson

@Mike Sattem   I would prefer option 2 every time, because what I do with real estate is I want to get them paid down quickly which reduces risk, which we all should be calculating for.   When the market tanks and renters become scarce, the person who put nothing down and has the larger mortgage payment is going to be in a worse financial position then someone who pays down the balance and has a much lower mortgage payment.  Plus the equity is much great with cash in the game should you need to sell in an emergency.   I believe most people don't calculate for risk and leave that out of their calculations with the impression that things can only go well.

So if you would have out 20% down, you'd have 70k in equity and much higher cash flow then only having 40k and $300 a month cash flow.

I own a duplex in the Hiawatha neighborhood and let me tell you how wonderful it's been. The location is perfect because it's 4 block from the light rail and the river. It is also close to Minnehaha falls. Rents for a 2 bedroom bath are anywhere from $900 to $1200 per unit. Cash flow on my duplex after expenses is around $400. As for SFh's, I'm not a big fan because of the possibility of 100% vacancy rate vs a duplex.

What happens if the market tanks and you have negative cash flow and negative equity. Just remember the market can go up or down, not just up.

Transfer of ownership fees, application fees, LLC fees, mowing and snow removal fees. Lease creation fees, attorney fees.

I've never seen tile accent walls but I suppose it's a personal taste. I love the floors.

To be honest I have a duplex that is rente out, both the top and bottom until August 31st from the previous owner. Personally I am of the belief in owning rental property on an area that you know well and live close to an manage yourself. If I had someone else PM for me I woul have lost the lower tenants. Let me quickly explain. The lower tenants were planning to move out because the previous owner who had a PM wasn't doing anything to fix basement flooding issues. Since I've had the duplex I have put gutters on the house, graded the property and built a stable deck for the lower tenants all myself. First advantage I I paid no labor, second advantage I was pro-active and third advantage the tenants watched me personally bust my butt to fix the problem. This I saved the tenants from moving out. Enough said. B

I'm from Minneapolis and I recently purchased a duplex in South minneapolis in the Longfellow neighbor which is conveniently located by the light rail and near the historic Minnehaha Falls desirable area. I paid 180k and the rent is $1700 and in cash flowing around $350 a month after all expenses. The problem with the location your talkin about is that it's North minneapolis and it is a poor neighborhood with a lot of crime. Us here in Minneapolis don't think very highly of North Minneapolis. When mentions that area, we think of crime first. Just my two cents.

How will you pay for school with the rental income? Even if you cash flowed $400 a month that's only $4800 a year. Do you have enough money to put 25% down and cash reserves?

How will you pay for school with the rental income? Even if you cash flowed $400 a month that's only $4800 a year.