All Forum Posts by: Steven Gitter

Thank you Bill.  So it comes down to the bottom line numbers... Not the numbers compared to the value of the property.

Thank you for the reply Devin.  I'm asking from the investor's point of view.  Or are you saying as an investor you look at it the same way a lender would? 

Hello all.  New to BiggerPockets. Currently, I own my primary residence and a rental condo.  My question:

My primary residence has a mortgage of $3400 and the value of my house is $850,000.  Total expenses for the year are $40,800 which is roughly 5% of the home value.

My condo costs $1080 a month (high HOA) and has a value of $100,000. Total expenses are $13,000 which is roughly 13% of the value. My condo pays for itself and if I rented out my primary it would cover itself as well.

Question: Is there any metric you use or ratio when looking at debt service or is it all about the numbers?  I'm sure, there is no one answer to this question but wanted to hear some opinions.  When looking for rental properties is there a specific % you want the debt to be in relation to the value of the property?

Thanks in advance!