Quote:
Originally Posted by Hog Farmer
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.
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Yeah, it would have to be a 15 for it to work for me. I'd be lucky to live another 30 years. Just a matter of the monthly rent covering the payment. I haven't really crunched any real numbers yet to see if that's realistic.
Quote:
Originally Posted by Hog Farmer
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.
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I wouldn't be at 100% financing. I'd probably be looking at 25% or so down for a lower payment so there's some extra money to help cover costs. As I mentioned, I'm not concerned so much with month to month income, I'm more interested in a place to put some money besides the 401k.