Posted by Tim on March 08, 2001 at 09:55:12:
Thanks for the info. The $450/mo is truly positive cash flow after all expenses and debt have been paid for the month. I even calculated $100/mo for maintenance costs. As you have stated, hopefully I won’t have to tap into this for repairs because the property is in good shape.
As far as the appreciation goes, my thoughts are that I’m purchasing this property at the top of the cycle. In a couple of years, this property may sell for 90k. I’m not sure how much appreciation will be there. Maybe when the market makes a full cycle the top price will be 105k or 110k. Then, maybe I’ll consider selling and gain some profit out of it. But, I’m going to look at this conservatively and say my only profit from this place will be the $450/mo. Which, to me, is pretty good.
I didn’t realize the banks may frown on the LOC. Thanks for the heads up. I should be getting my loan in another couple of weeks so I will consider taking some of it and dumping it into my savings. It’s worth the $25 in interest per month if the banks will look favorably on that. Thanks for your time!