Posted by Dale on May 09, 2007 at 18:52:53:
I was looking at what the cost of buying a house with a cashflow of 200 per month. If you buy say a 200K home with 20K down and a 180K mortgage a PITI payment is 1400 per month. Rent on a 200K home in my area is about 1,295 per month. So leverage is not working well there. Now I understand about being creative and buying a home at a discount and maybe buying subject too existing loan that maybe I can get it cheaper.
Now if I can find a home around 120K which is non existent in my area of Florida I can get about 1100 per month and a PITI payment of around 875.00 so I assume that their is a cashflow.
So you can see what I was refering too about 200 per month in cashflow. I was given a presentation of 200 cashflow per month residual income. It got me to thinking about cashflow.
Just an idea.
Just for your info this is not an attempt to bash Network Marketing. I am an investor. I was just looking at the corellation.