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Started By
Message
re: Information for my fellow Real Estate Investors
Posted on 3/16/17 at 3:10 pm to atom1505
Posted on 3/16/17 at 3:10 pm to atom1505
quote:
COC return would fall to about 28%
fall? that's still excellent! quote:
would go up to about $475.
excellent yet again!
quote:
Could you elaborate a little on your preference for cash flow over returns?
I like to use leverage but you putting that amount down repeatedly (if allowed) could cause possible issues. Leverage is great however over-leverage can bite you in the arse. Just be vigilant. For this property if you want to give it a try and if you are ok with that positive cash flow ,for that price point since you like the COC return go for it.
quote:
but is PMI not required for a non-owner occupied rental?
not if you put 20% down. Most traditional lenders won't do it even if you were willing to pay PMI. May not be an option regardless depending on lending restrictions.
1
Posted on 3/16/17 at 3:36 pm to Fat Bastard
Thanks! Maybe I'll just wait a bit and go that route instead. My idea here is to have several of these paid off and 100% cash flowing in 15 years or so. I plan to just reinvest the cashflow into the principal except for vacancy and maintenance fees.
Right. I just didn't know if the non-owner occupied deal affected PMI on its face. When you say "most traditional lenders wouldn't do it," you mean that most traditional lenders wouldn't lend me the money period without 20% down?
I guess the idea going forward would be to pay 20% down on a couple of properties, build up some equity in both those properties and my house, then maybe use that to establish a line of credit that would give me a little more purchasing power. The financing part is kinda the last piece of the puzzle for me to figure out.
quote:
not if you put 20% down. Most traditional lenders won't do it even if you were willing to pay PMI. May not be an option regardless depending on lending restrictions.
Right. I just didn't know if the non-owner occupied deal affected PMI on its face. When you say "most traditional lenders wouldn't do it," you mean that most traditional lenders wouldn't lend me the money period without 20% down?
I guess the idea going forward would be to pay 20% down on a couple of properties, build up some equity in both those properties and my house, then maybe use that to establish a line of credit that would give me a little more purchasing power. The financing part is kinda the last piece of the puzzle for me to figure out.
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