Hi All,
I follow this forum on a regular basis and find it very informative. I am still learning and hope to learn more...
My wife and I have been on the fence about investing in real estate for a few years and have finally decided to to take the plunge. We are both in our mid-forties and have been fortunate to build up equity in our personal residence. We have a property on our radar that we may be putting an offer on but, would like to get an answer to one question before we proceed..... If we use our LOC for a downpayment, do we set up the LOC for monthly payments (principle and interest) or interest only?
A little info. on the property:
List Price: 299,900.00
Apartments: 3
Rent: 3000.00
Oil: vendor
Elec: tenants
Expenses:
Oil: 274.00
Taxes: 192
Ins. 83.33
Prop. Mngmt (5%):136.30
Vacancy All. (2%):54.52
Repairs/Main. (5%):136.30
Monthly Expenses:$876.45
Down Pymnt: $43,500 (20% if acquired at $290,000)
Mortgage @ 4%: 1300.00
Cash Flow:$823.55
Your opinion on LOC question and this property would be appreciated. Thank-You!
Hardel
I follow this forum on a regular basis and find it very informative. I am still learning and hope to learn more...
My wife and I have been on the fence about investing in real estate for a few years and have finally decided to to take the plunge. We are both in our mid-forties and have been fortunate to build up equity in our personal residence. We have a property on our radar that we may be putting an offer on but, would like to get an answer to one question before we proceed..... If we use our LOC for a downpayment, do we set up the LOC for monthly payments (principle and interest) or interest only?
A little info. on the property:
List Price: 299,900.00
Apartments: 3
Rent: 3000.00
Oil: vendor
Elec: tenants
Expenses:
Oil: 274.00
Taxes: 192
Ins. 83.33
Prop. Mngmt (5%):136.30
Vacancy All. (2%):54.52
Repairs/Main. (5%):136.30
Monthly Expenses:$876.45
Down Pymnt: $43,500 (20% if acquired at $290,000)
Mortgage @ 4%: 1300.00
Cash Flow:$823.55
Your opinion on LOC question and this property would be appreciated. Thank-You!
Hardel