Updated 3 days ago on . Most recent reply
Did I Get a Good or Bad Deal?
Cash Flow: -$30/month. Yes, negative. Location: Utah Valley, UT. Hot growing market. Avg Appreciation over last 10 yrs in my area: ~8% annually Equity paydown over next 5 yrs based on amortization schedule: ~27k
Bought home for 400k, appraised at 485k.
FHA loan, 30 yr, 5.875% int rate, MIP is $175/mo.
Strategy: Date the rate for 4-6 yrs, pray int rates drop to 4-5%, re finance into conventional with LTV less than 80% due to existing equity, take off PMI/MIP, have a lower int rate, and cash flow ~$200-250/mo.
Good deal? Bad deal? Bad strategy? Feedback.
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#1 Starting Out Contributor
- Flipper/Rehabber
- Pittsburgh
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#1 Starting Out Contributor
- Flipper/Rehabber
- Pittsburgh
was your down payment low? for me the issue is not so much whether the 'cash flow' is -$30 or $0 or +$87. none of that moves the needle. the issue is whether there's a lot of cash in it. if you have $0 cash in it, awesome. if you have $100K into it, not as awesome.