All Forum Posts by: Kyle M.

20% down

 I just plugged it into Trulia Mortgage calc and double checked on Zillow mortgage calc

I have:

Price of Property: 114,500

Down Payment: 22,900

Loan Amount: 91600

Interest Rate: 4.25

_________________________

Principal and int payment: $451

Insurance: Factoring in $50/month

 thank you! I have read that and will be definitely referencing it

 Thanks! 

It is a condo that I purchased for $114,500 in high-end area.  The same condo sold for $147,000 in 2005.  I know I can get at-least $1300 month in rent (through posting a fake ad on Craigslist).  Top rents in the same area are $1400.

I know some people on here are against condos and rightfully so. Without going into much depth I felt that the negatives were outweighed by the positives such as booming area, A+ schools, attract high end tenants (less maint/hassle), ability to appreciate, know the PM personally, and I actually grew up in the same town so I know the dynamics well. Similar SFR in area go for $200,000+ and feel that it was a cheap buy in a nice area.

Property in great condition and will only need paint, new rugs in bedroom, and there are some grouting issues in the bathroom.  Expect around 3k worth of work

Rent - Mortgage&Ins - Taxes - HOA - Vacancy (5%) - Maintenance (5%)

1350 - 500 - 235 - 205 - 68 - 68 = +280

Goal is to first gain experience and become familiar with all aspects of being a buy and hold investor.  Down the road grow my rental portfolio and keep on utilizing resources to make the correct and informed decisions to grow passive income.

Question:

1. Currently deciding on mortgage rates when comparing them with the closing costs.  For example, 4.25% rate with 5k closing costs or 4.75% rate with 3k closing costs.  What is better?

Just bought my first property, thanks BP!  Is a 2br/2ba that rents for $1350 and I close on Dec. 1st.

Any tips when finally starting out? How to prepare etc. (may be even some informal ones)

I plan to make a nice long laundry list together of things to do, but that can wait until tomorrow!

 thanks for the visual, i like the butcher block idea.  Good way to have it look good and cut costs.  This is a nice modern setup!

Hi guys, I am looking at a condo that could use some updating in the kitchen, bathroom, and flooring.  The area that I am investing is an upscale area where I can achieve $1,000+ in rent for 1br apartments.  The property that I am looking at is condo that is 800 square feet.

I would like to get some insight on what the best upgrades are for this condo.  I want to get a good rent, but also don't want to spend 30k on all the top quality materials.  I would say if I could keep the renovations under 10k and have it look good, that would be ideal.

My thoughts on upgrades:

laminate flooring
paint cabinets
kitchen island (don't know what to do with this)
new toilet
remodel bathroom somewhat

Any thoughts on what the most effective upgrades are would be beneficial.  Also, what are the best ways to get these upgrades (GC vs. homdepot ect.).  Any guesstimates on what my initial rehab costs would be great as well, thanks!

okay great, thanks for the responses.  I'll have an attorney lined up and ready to use when i have to evict.

I'm going to be purchasing my first rental property and will look to manage it myself (at least in the beginning).  I have read the stickies on land-lording and read up on websites like ezlandlordforums.com to get proper documents.

Is it important to contact a RE Attorney to go over leases and other forums before renting to tenants?

Any time you're dealing with new wood you can tell if paint/stain will adhere by performing water test.  Sprinkle water on the wood and make sure the water soaks in, if the water beads up than the wood will need to weather longer.  You have a number of options but I prefer using a stain used for decks or porch enamel because it eliminates the need to use a primer.  If wood is in good condition than a stain will resist peeling better than latex paints/enamels.