| Posted by: kaidasz Nov 24 2002, 10:58 PM |
hello,
another variation of the same, i refied about 4 mos back and was appraised at 380k, i currently have a balance of 278k on that mortgage. i have zero other debt besided living expenses. i am interested in a rental property that costs 315k and would rent at $1400/month.
my current loan is thru b of a and they have lots of options but i would like a pro's take on how i should proceed.
assuming my credit is immaculate and my gross monthly exceed 12k, what
are my best options?
thx doc!!! |
| Posted by: loanuniverse Nov 26 2002, 11:30 PM |
(kaidasz @ Nov 24 2002, 10:58 PM)i am interested in a rental property that costs 315k and would rent at $1400/month.
Hello kaidasz:
Thanks for the visit and the post. I am sorry for the delay in the response, but I am on vacation and have not had a time to check the website lately. Anyway let me take a quick stab at your situation.
The first thing I notice is the price and the rent. Frankly, I do not like what I see. If you are going to get $1,400 a month or $16,800 a year in rent that is not enough for a $315,000 property. Even if you did not have to account for other expenses such as maintenance or utilities, you are still going to have to pay for insurance and taxes. Those two alone will take at least $4,000 of your annual rental income leaving only $12,800 to repay debt or provide Return On Investment.
Go to http://www.loanuniverse.com/rental.html for some pointers.
Therefore, my early indication is that it is not a good investment using those numbers. |
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