|
![]() |
#886 |
Supporter
Join Date: Aug 2000
Location: Utopia
|
I know what I'm getting into...and it's why I said I'd never want to do it. We managed several houses for another guy when I was a kid. I've cleaned out more gross houses than I'd care to say. I always said I couldn't be a landlord because if I scooped 50lbs of dogshit off of a 3 month old carpet I paid for I'd go to jail.
Looking ahead, it's more realistic to make a small, steady profit 10 years from now....college money, car payment level money. I haven't closed on 1 and I'm already looking at 2. Time is my biggest problem. Too many hustles to go along with a good job and busy family life. |
Posts: 61,769
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() |
![]() |
![]() |
#887 |
Fish are scared of me
Join Date: Nov 2001
|
I bought most of my properties with 100% financing. 20% from the owner and 80% from the bank.
|
Posts: 40,687
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() |
![]() |
![]() |
#888 |
MVP
Join Date: Feb 2013
Location: Studio City, CA
|
Do you pay PMI on all your properties?
|
Posts: 13,298
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() |
![]() |
![]() |
#889 |
Fish are scared of me
Join Date: Nov 2001
|
|
Posts: 40,687
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() |
![]() |
![]() |
#890 |
The Maintenance Guy
Join Date: Sep 2005
Location: Renovated Bugeater Estate
|
|
Posts: 70,526
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() |
![]() |
![]() |
#891 |
MVP
Join Date: Feb 2013
Location: Studio City, CA
|
Do you avoid PMI because the owner is financing your 20% downpayment? Or is it because you are financing with a non-conforming loan with a higher interest rate?
|
Posts: 13,298
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() |
![]() |
![]() |
#892 |
Fish are scared of me
Join Date: Nov 2001
|
15 years with the bank
with the owners for the 20% I offer them a 5 year balloon ammoritized for a 15 year payout but normally give them a higher interest rate like 8% to help motivate. I never ever ever ever do a 30 year loan. |
Posts: 40,687
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() |
![]() |
![]() |
#893 |
Fish are scared of me
Join Date: Nov 2001
|
|
Posts: 40,687
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() |
![]() |
![]() |
#894 |
MVP
Join Date: Feb 2013
Location: Studio City, CA
|
I'm clear on why you want to avoid PMI I'm just unclear on the how. It's like people buying condos out here and saying they don't pay association dues because they're a ripoff. Okay...go on...
|
Posts: 13,298
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() |
![]() |
![]() |
#895 |
Fish are scared of me
Join Date: Nov 2001
|
Rentals can be tough if you only have 1 or 2 and the reason is they normally don't generate enough cash flow. A hot water heater replacement can cost you $1000 and if you're clearing $50 /month on a rental after Principal/Interest/Taxes and Insurance well then two rentals will pay for that one water heater in a year. My break seemed to have come at 10 rentals to cover itself without having to pull money out of my pocket. but keep in mind I was at 100% financing too.
|
Posts: 40,687
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() |
![]() |
![]() |
#896 | |
Mod Team
Join Date: Sep 2011
Location: Valley of the hot as ****
|
Quote:
That being said there are plenty of index and ETF funds that can be bought in brokerage account. I'd lean that way if you're planning to have her invest. TD Ameritrade has 100+ index and ETF funds that trade for free. Might start there. |
|
Posts: 45,993
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() |
![]() |
![]() |
#897 |
Mod Team
Join Date: Sep 2011
Location: Valley of the hot as ****
|
Hogfarmer can answer this more but here's my thoughts.
Financing a house will obviously give you the tax advantage of the interest paid on the mortgage for the year. However, seeing as you'll rent this and have a new line of income, you'll have to pay taxes on this income. I'd have no idea of the tax advantage of the mortgage interest over how much income you'd generate though. Maybe Hogfarmer can answer that? It is a different type of investment though and is fairly liquid, especially when comparing to a 401k. I would never do it because of what Hog Farmer mentioned, maintenance cost. Being unhandy like myself, I'd have to contract out all the work. If you're handy, like you are, and can do most of the maintenance, you can make way more money. If your sole goal is to lower your taxes, having your wife max out her 401k for the year ($18,000), decreases your taxable income by that exact amount. Last edited by lewdog; 04-19-2017 at 06:27 PM.. |
Posts: 45,993
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() |
![]() |
![]() |
#898 |
In Search of a Life
Join Date: Jul 2009
|
I have a friend that I golf with alot that has over 90 rental properties. Seems to do pretty well?
|
Posts: 82,036
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() |
![]() |
![]() |
#899 | ||
The Maintenance Guy
Join Date: Sep 2005
Location: Renovated Bugeater Estate
|
Quote:
Quote:
|
||
Posts: 70,526
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() |
![]() |
![]() |
#900 | |
The Maintenance Guy
Join Date: Sep 2005
Location: Renovated Bugeater Estate
|
Quote:
|
|
Posts: 70,526
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() |
![]() |
![]() ![]() |
|
|