All Forum Posts by: Luka Milicevic

I'm up for a meetup. 

I don't know how I left off mgt expenses and HOA fees. FACE PALM.

Even if you plan on managing yourself, you should always acquire properties that would still cashflow with property management expenses. At some point you might decide to hand the mgt over instead of self manage and if your cashflow is too thin you won't be able to do so.

Principal and interest. Taxes and insurance (PITI)

Monthly maintenance and repairs

Vacancy reserve 

Capital expenditures.

Use the 50% rule to calculate your cashflow. There are some variations of this rule, but generally:

Rent-Financing=x amount.

x amount multiplied by 50% will be your monthly exp, so basically half your cash flow.

Conventional lenders will most likely always require 20% down. Some lenders will even go 25-30%. The reason being is that you will default on an investment property before you default on a primary residence. Hence, higher risk, they need more of a downpayment. 

If you don't have the 20% required, you can go to private lenders for the difference. I haven't spoken to a conventional lender that allows for investment properties to be purchased with less than 20% down.

CedarStone bank. Hank Stuart is the investment lending specialist and actually knows what he is talking about. Most lenders hang up the phone when you say the word "investment" 

They hold portfolio loans. Their max term is 20 years and since they hold their loans in house they don't do fixed mortgages. If they did that they would be receiving a low interest rate on money loaned out and paying higher interest rates on deposits. (When interest rates rise). 

$6500???? did you accidentally add an extra zero at the end? I'm sure they have very fancy reports with solid data but that is far too much to pay for market data. What Devan said; Just go ahead and do your own research. The information out there is free and I don't see how you could justify 6.5k.

Mark, it's always possible to find a good deal but Nashville right now is pretty tough. Perhaps you could find a good wholesaler to get you a deal. Most likely the property will need some work, or you could create your own marketing campaign to find a deal. Finding anything on the MLS in Nashville is not really easy.

In terms of the one side covering the entire mortgage-very possible! You just have to pay the right price for the property.

Very nice. Thank you for sharing all of the details. 

Happy to hear you had a home run day in a pretty hot market

Anyone here who has experience with Donelson? I don't know the area all that well but I hear it's quite nice and up and coming. I have a bit of a concern with the schools. They have really low ratings, I guess that's all Nashville metro schools, from my understanding.

Nashville's traffic definitely is showing the boom in people moving here!