Posted by bill (OH) on February 17, 2000 at 04:52:34:
I can’t make sense out of your math—although I would assume that onc you mov out, your profit will go up. I would guess that you don’t have much equity in the property, so instead of encumbering the property with more debt (which would have to be paid off before you can sell the property)…try this. Look at your taxes and add up all of the costs that you can write off and depreciate from owning the fourplex. Often times, this results in enough money to for a downpayment. The other option is to do a wrap around mortgage, but I’d only go that way if the other property has a lot of equity in it—at least 20%. Houses and apts. have ways of throwing expenses at you at the worst possible time so keep some equity for emergencies. Good Luck!
I am a new investor. I just purchased a four plex for 115,000 in La. The rent is now 400 for the top two and 425 for the bottom two. My mortgage is 1,032. I pay water and sewage that average about 115 a month.I coming out with 72 dollars positive cash flow what did I miss or am I forgetting to add something else?
P.S. I have the chance to do a similiar deal from the same seller should I go it!!
Posted by Andy - MI on February 12, 2000 at 17:27:55:
Either my math has become WAY bad, or you left out something like, taxes, insurance or something. Does the $1032 include P+I, tax, insurance?
If it does, I look at this as being $503 cash positive per month. Don’t know about you, but I can ALWAYS use an extra $503 a month. However, don’t forget to include your stash for maintenance/upgrades, and a vacancy rate plug-in.
Posted by Shan, La on February 12, 2000 at 21:52:38:
The 1032 does included P+I,taxes, insurance. My figures were low because I plane to move in one of the units until I buy a house, but before the house the same seller is willing to do a similiar deal. I looking for a creative way to get the down payment. should I apply for a line of credit?