To be a successful business owner and investor, you have to be emotionally neutral to winning and losing. Winning and losing are just part of the game. Risk comes from not knowing what you are doing.
The problem I'm trying to solve is that if I buy a duplex with 3.5% down, even if it meets the 1% rule, let's say I buy for $250k and can rent for $2,500... Well now even if I score a killer 6.5% interest rate I'm looking at 5% vacancy, 10% repairs (MINIMUM), $200/month in PMI, $215/month insurance, $220/month taxes... This property cashflows -$3,530.20/year. A deficit that's not even satisfied by the principal paydown which is only $2,745.41/year. These estimates are based on a Duplex in Panama City, FL and reflect the reality of the market here. I feel like I'm in a great cash-flow market... but I definitely can't buy a duplex unless I'm willing to be in the red for a couple of years. Do I just accept that negative cash flow? Do I look for a better market? Do I try to find a better deal?
I’d encourage you to think of this in terms of total cost of living. I’ll assume you pay $1200/month in rent. You’re spending $14400 for living expenses each year. Even with principle pay down, your scenario saves you more than $10k per year in living expenses. I wouldn’t say that’s in the red - that’s a major win financially, plus you get the principle pay down, tax benefits, and potential for appreciation.
Hey Henry.. How does the rental property (accelerated) depreciation offset the taxes for W2 earners? I thought depreciation offsets rental profits only.
Its ring fenced to your passive portfolio. So at the point when your portfolio becomes profitable (which is something everyone investor should want), then you can use the loses.
My wife and I just bought our first long term investment property in Oct. ‘24 and we’re hooked! We’re looking to purchase another property out of state (Disney area) to use as an Airbnb but we’re unsure how to run comps on something like that. Do you have any advice?
Hi! I love your show, where in the south west you investing? Im in Thornton Colorado , im investing 3 single residence house for rent but no cash flow cause i bought it in 2024 when interest is peak. Cant wait to refinance at lower rate. Im interested in different market like you thought. Thank you for sharing!
Usually yes. Many people can get loans based on their personal credit. Not sure about savings-backed, but I've been looking into asset-backed loans, like borrowing against a brokerage account.
I've owned my home 3 years now paying into principal every month put alot down when I bot. Dti under 40 credit awesome. I've been turned due to income. What can I do to get past this? I am not stopping. Heloc didn't wrk. Things were falling apart. Lol.
I live in Lansing, Illinois. I bought a second home, now am looking for a third home to rent out but I don't want use my own money. How do I do this the right way.
You could partner with someone else who could put up some money, but in most instances it makes sense to at least some of your own money to ensure you get some solid equity in your deal.
No hidden things in new construction? I almost choked. New construction build quality has been terrible the last 5 years I see more problems new than 10 years old! Definitely get new construction inspected.
So your thumbnail says, "Pay down debt or buy rentals", and then the video title is , "How to Buy Multiple Rental Properties a Year (Is It Possible?)" So what's the actual main focus on the video?
![Noob To Max With DRAGON REWORK In Blox Fruits [FULL MOVIE]](http://i.ytimg.com/vi/LnBMOinoOvA/mqdefault.jpg)
I would love to see for the both of you to do a show on walkthrough seeing the home for the first time
To be a successful business owner and investor, you have to be emotionally neutral to winning and losing. Winning and losing are just part of the game. Risk comes from not knowing what you are doing.
Many new tra-ders face challenges without proper guidance. I found success by learning from James Clark's expertise.
The problem I'm trying to solve is that if I buy a duplex with 3.5% down, even if it meets the 1% rule, let's say I buy for $250k and can rent for $2,500... Well now even if I score a killer 6.5% interest rate I'm looking at 5% vacancy, 10% repairs (MINIMUM), $200/month in PMI, $215/month insurance, $220/month taxes... This property cashflows -$3,530.20/year. A deficit that's not even satisfied by the principal paydown which is only $2,745.41/year. These estimates are based on a Duplex in Panama City, FL and reflect the reality of the market here. I feel like I'm in a great cash-flow market... but I definitely can't buy a duplex unless I'm willing to be in the red for a couple of years. Do I just accept that negative cash flow? Do I look for a better market? Do I try to find a better deal?
I’d encourage you to think of this in terms of total cost of living. I’ll assume you pay $1200/month in rent. You’re spending $14400 for living expenses each year. Even with principle pay down, your scenario saves you more than $10k per year in living expenses. I wouldn’t say that’s in the red - that’s a major win financially, plus you get the principle pay down, tax benefits, and potential for appreciation.
$2,500 total or for the one unit?
Great show y’all!
Thank you!
I would really love if you do an unboxing of the properties that you bought unseen
lol, stay tuned, I am going to be there on Monday!
I’ll stay tuned I listen to every podcast you guys make
Adaxum: A clear market leader.
The Adaxum presale is a great opportunity for early adopters. Secured my position just in time!
Adaxum’s approach to integrating E-commerce and DeFi is interesting. Took a position in the presale.
ADX has potential, especially as the team builds out its E-commerce applications.
Adaxum’s focus on real-world solutions sets it apart. Secured my position during the presale.
Hey Henry.. How does the rental property (accelerated) depreciation offset the taxes for W2 earners? I thought depreciation offsets rental profits only.
Its ring fenced to your passive portfolio. So at the point when your portfolio becomes profitable (which is something everyone investor should want), then you can use the loses.
Would love a property management recommendation for Denver properties. Thanks!
My wife and I just bought our first long term investment property in Oct. ‘24 and we’re hooked! We’re looking to purchase another property out of state (Disney area) to use as an Airbnb but we’re unsure how to run comps on something like that. Do you have any advice?
Took a small position in the Adaxum presale. Let’s see how things develop.
Is having a main house SFH, with an attached dwelling unit considered a duplex?
Whales are circling Adaxum, and for good reason-this project has massive potential.
Hi! I love your show, where in the south west you investing? Im in Thornton Colorado , im investing 3 single residence house for rent but no cash flow cause i bought it in 2024 when interest is peak. Cant wait to refinance at lower rate. Im interested in different market like you thought. Thank you for sharing!
right now it is hard for people to moving for paycheck. The pay raised after tax after learning curve of the new position is hard to justify.
Can you use a personal loan to buy income property?
Or can you use a savings backed secured loan to buy income property?
Usually yes. Many people can get loans based on their personal credit. Not sure about savings-backed, but I've been looking into asset-backed loans, like borrowing against a brokerage account.
@
First time investor , is a personal loan a better choice over mortgages w restrictions but lower intrest?
ADX Adaxum is gaining serious momentum.
I've owned my home 3 years now paying into principal every month put alot down when I bot. Dti under 40 credit awesome. I've been turned due to income. What can I do to get past this? I am not stopping. Heloc didn't wrk. Things were falling apart. Lol.
I live in Lansing, Illinois. I bought a second home, now am looking for a third home to rent out but I don't want use my own money. How do I do this the right way.
You could partner with someone else who could put up some money, but in most instances it makes sense to at least some of your own money to ensure you get some solid equity in your deal.
@biggerpockets what about free grants from government 🤔? I prefer keep my company private.
No hidden things in new construction? I almost choked. New construction build quality has been terrible the last 5 years I see more problems new than 10 years old! Definitely get new construction inspected.
So your thumbnail says, "Pay down debt or buy rentals", and then the video title is , "How to Buy Multiple Rental Properties a Year (Is It Possible?)" So what's the actual main focus on the video?
They don't know bigger pockets sucks now. They make a video talking to someone then throw up whatever title they think fits
First 5 minutes 🎉
First
Adaxum seems like a solid project, though I’m keeping my expectations in check.
Adaxum might be worth a closer look if you’re into projects with real-world applications.
Got into the Adaxum presale after doing my research. This project has serious potential for the next bull run.
Got into the Adaxum presale early. Hoping this turns out to be a good investment.
Got into Adaxum early in the presale phase. Feeling bullish about the future of ADX!
Adaxum ADX presale ends soon, hurry!