That may be...but i have firmer
.Property has nothing to do with it...Using one example.....i could have paid 3-4 months of payments ahead on my properties but inveseted in a 3-d printing business for 100,000 which i netted 397,000 in 18 months. I have another great one which is up over 400% in the past 2 years but still on the rise.
wilbur, all they are saying is that mortgage rates are so low that is is fairly easy to make more money investing. (i.e. interest income - mortgage interest = net profit on borrowed money)
that being said I want to congratulate you. if I could pay off my mortgage I would. not having to make a mortgage payment while still owning property is awesome!
that being said I want to congratulate you. if I could pay off my mortgage I would. not having to make a mortgage payment while still owning property is awesome!
This is absolutely correct. See it all the time people who have money borrow money all the time. Number 1 reason for a cash out refinance is liquidity purposes, which means nothing. If you have $10m in the bank you don't need the cash. Same with helocs or borrowing off of assets. The most common mortgage mortgages among those considered high net worth are interest only for the first 10 years.
I'm not a sharp enough financial mind to say definitively this is the way to it, but you can finance 100% without mi it is something to look into. Rates can fluctuate daily but have been low for a number of years now. Take out a 10/1 interest only at say 3.5%. Hypothetically a $165k mortgage you are paying around $500 vs $750 for a p&i loans (these are estimates in my head and not a calculator). That $6k you paid is used to reduced your taxable income and you are saving yourself buy not paying around $100-$150 in mi.
Would certainly like to know more about this.
Someone I know is selling 4 units in a great part of town getting 3500 rent average on each for 1.2
Would really like to figure out a way to buy them without putting down half my life savings
It's not just buy a property and get a check once a month.
Tenants move and you have to paint rooms and clean shit up.
Meet potential renters, do background checks.
Get calls in the middle of the night for a plugged drain, air conditioner quits working and anything else you can think of.
Yet there are more months that you just get the check with no problems.
with interest rates being as low as they are, it's not a bad thing to use other peoples' money to buy investments
if you feel you can earn more than 4%, go for it
it's also not a bad thing to be debt free, to each his own.
there's more than one way to skin the cat
if you feel you can earn more than 4%, go for it
it's also not a bad thing to be debt free, to each his own.
there's more than one way to skin the cat
4 units is going to need to be a commercial loan which is a whole different set of requirements than a loan on residential property. Most of the time this is with an entirely different lending arm of a financial institution.
Can't speak to that particular deal and on the surface 170k/1.2M sounds fine but in general multi-family is similar to a lot of other asset classes out there right now in that it is becoming very frothy.
if it really is in a good neighborhood you may also need to move fast. Those REITs/private equity firms are just so well capitalized to move nowadays
Can't speak to that particular deal and on the surface 170k/1.2M sounds fine but in general multi-family is similar to a lot of other asset classes out there right now in that it is becoming very frothy.
if it really is in a good neighborhood you may also need to move fast. Those REITs/private equity firms are just so well capitalized to move nowadays
