Quote:
Originally Posted by Sly
bdjuf wants a cash flow positive property. And I'm 90% sure that DH only deals in cash flow positive property. If the mortgage alone is $2k (not including taxes, insurance, maintenance, management, etc) that means the property must rent for a minimum of $2k, more like $2.3k I would bet.
What part of your statement am I missing? Or what part of my statement are you missing?
This is about cash flow positive properties. Not flipping a house in 2 years because it "might" go up, which by the way is the reason a lot of people are filing bankruptcy right now. Oops.
|
Right, but again, you're talking about tying up as much cash in a downpayment as you can to get a "postive cash flow". That's just not always necessary. That downpayment may well be better suited AS the downpayment, or it might make you more money if you invest it elsewhere and use the other investment proceeds to cover any loss you might see in rent.
High downpayments aren't ALWAYS good - there can be more money made elsewhere. It's like people who can afford to pay off their house, but instead, they invest that equity in something else that will bring them a higher return than the interest they'd pay on the mortgage. Same thing with rental property (or any investment).
And appreciation is important in all real estate - if you live in it, rent it out, sell it in a month or sell it in 50 years. Just because you put a higher downpayment on it and the rent covers your mortgage doesn't make it worth more
And appreciation in an area usually means higher rents
