All Forum Posts by: Mark Nugent

Thanks for the feedback, @Clay Manship . That's really good info. I would love to take advantage of a HomePath mortgage. I'm currently renting, so it's an opportunity to lower my monthly costs while getting another property that I can rent out later.

Just purchased my first rental property and wanted to share the financials. Feeling pretty positive about the purchase. The maintenance estimate might be low but I have lots of wiggle room.

Purchase price: 106000
Closing costs: 1150
Down payment: 26500 (25%)
Interest rate: 5.125%
Year built: 1957

Expenses (annual)
Taxes: 480
Insurance: 578
Maintenance: 1000
Water/sewer/trash: 1317
Property Mgmt: 1350 (10% gross)

Income (first year)
Gross Rent: 15000 (625/unit/month)
Vacancy rate: 10%
Vacancy loss: 1500
Total expenses: 4725
NOI: 8775
Cap rate: 8.19%
Mortgage payments: 5194
Cash flow: 3581 (149/unit/month)
Cash ROI: 12.95%
Equity accrued: 1148
Total return: 4729
Total ROI: 17.1%

Let's say I get a HomePath mortgage for 5% down, and I live in it for 1 year as required by the HomePath First Look program. If after a year I want to move to a different residence and rent out the HomePath property, do I have to refinance it as a rental property?

Do mortgage lenders call the full amount due if they see you are now renting out a property that you financed with a mortgage based on owner occupancy?

I ask these questions because refinancing is expensive, and I want to lock in a low interest rate now, but I may want to move later and rent out the property. What is my best strategy in this case? Could I finance a property as a rental, even though I may live in it for a period of time before moving out and renting it?

@Joe Fairless , yes I am sticking to Phoenix area only. I want to find rental properties in fairly close proximity to one another. It's a comfort zone thing.

Nice! Thank you.

I notice when people respond to your discussion thread, they often add a link to another user, instead of just using their name. How do you do this? I know I read somewhere how to do it, but can't seem to find it now.

Here's a tip I thought I would share.

Have you ever been on a website like Craigslist, and there is a photo of a property you are interested in but no address? You can search for an image using Google. Just open a separate browser window, go to images.google.com, then drag the photo and drop it onto the google page. Google will provide a list of pages that contain that photo.

Thanks for the feedback. Brett, the cutoff makes me wonder. If a married couple's taxable income exceeds the cutoff, but the property is purchased by the person making less income, will that person be able to qualify for the tax deduction if they file their taxes separately? Hmmm.....

I'm just about to close on my first rental property -- a duplex. Currently, my wife and I contribute the yearly maximum to our employer 401K plans to decrease our taxable income. However, now we are considering reducing our 401K contributions to the employer match, thereby freeing up extra capital for future investments.

We already have capital to buy more rental properties, but saving up the extra capital to invest still seems to be the better approach.

I'd be interested in hearing what others think about this subject. Is it financially better to pay the extra tax and have that extra capital to invest in the near term?

Hello, I am new to real estate investing, but have been doing a lot of focused research, and have been getting comfortable analyzing properties. I am interested in 1-4 unit properties, preferably 4-plexes. I have capital for downpayments on several properties in Phoenix, AZ.

I am confused whether I should be looking for a real estate agent, or a broker. It would be great if I can find a professional who also invests in multi-unit properties here in the valley.