All Forum Posts by: Spencer Herrick

I've finally put aside the capital to invest in my first property rental investment property. With interest rate hikes and inflation on the rise, I question if it even makes sense to make this kind of investment at this time. How will the direction of the real estate market coincide with renters? What am I thinking too much about and/or not enough about? Will rental income go down as the real estate market goes down? I know these are somewhat loaded questions, however this is what has had me scratching my head the past few months.

Thanks advance for any pointers/advice

@Harjeet Bhatti, then why are they asking me for 25% for a single family unit? Both banks are.

@Tim Stuart, Yes, 20% but both banks I spoke with were asking for 25%.

I've spoke to several lenders at this point and it seems that most will give you 30 years terms but every lender I've spoken with (3 different ones) are all requiring 25% down vs 20% down. Has anyone else seen this? Should I keep looking or is this just based on the economic climate we're in right now?

There's no doubt that the clock starts ticking once a "deal" property lists. That being said, how many of you buy sight unseen to beat the clock? I couldn't imagine buying a property without seeing it in person first. It's amazing how good some of those photographers are........

@David M. This does make sense. Thanks for the clarification!

I've been analyzing several properties to the point of exhaustion over the past few weeks. I'm trying to avoid the analysis paralysis, but want to make sure my first property I purchase is lucrative. That being said, is it okay if your first purchase isn't a "Great" deal? The properties that I've been hesitant to by show between 10 and 13% COC return, but I fear that I need more of a cushion for anything I'm underanalyzing. I appreciate any pointers and thanks in advance!

Spencer

@David m

@David M.

Thanks for the clarification. I'd like to read into this more. Any suggestions? Thanks in advance.

Spencer

@David M.

What do the PI and PITI acronyms stand for?

When your taxes and insurance are already coming out of your mortgage, do you need to include them in the expenses on top of your mortgage payment? Seems to me that you wouldn't include them in addition to the mortgage as they are part of it. In Brandon Turner's Video on the Four Square Method, he mentions this briefly at 5:04 in the video and says he'll come back to it, but he never does. I've put a link to the video in the Description so you can see what I'm talking about. This really has me stumped so thanks in advance!

Spence