[quote=RoyceKemp]I remodeled it with very high end fixtures and now rent it out as a furnished high end rental. So comparable market rent for the unit would be $1400/mo, but because of what I did to the property I get almost $2K/month on average (accounting for vacancy period). I cash flow about $300/month. It helps I put 20% down, and that I am on an ARM, so my interest rate is less than 3% right now, buy my principal balance reduces by $500 each month. With the extra cash flow I pay down the principal by another few K each year, so when rates climb again, I should still be in a cash flow position.
My best buy: In 2012 I bought a 2br condo in San Marcos for $115K. I cash flow on that unit $300/month right out the gate. it’s on a 3.99% loan for 30 years. Comps are going for $160K today.
I’m a buy and hold type of investor, so I focus on long term profitability. I’m okay with market fluctuations and focus on how to maximize returns with what I have, and the best way to do that is get and keep great tenants.[/quote]
Not to poke and prod but I’m just curious.
Regarding the UTC rental. You mention it’s a completely furnished condo. What is your typical clientele and roughly what is your tenant’s lease duration? And what is your vacancy rate looking like. From the sounds of if, it appears to be a a short(er )term rental..So I was just curious about it… Do you pick your own tenant or do you have someone that you work with that, for instance, does corporate reloc for you? Just trying to learn what others are doing….
Also ,regarding your San Marcos condo.. Sounds like it cash flows pretty darn good… Is it more of a longer term lease? Also, how did you manage to get a 3.99% 30 year fixed rate loan an rental? The best I was able to do was around 4.25% with almost no cost..When the loan balance is less than $150k, most lenders I talked to didn’t even want to do the loan since it was too small, and there was about a 1/2% penalty for being both a small loan and a rental property, if I recall. Again just curious..
Rates have gone up a bit, and I think the best that I’m getting quoted is around 4.4% with about $800 cost for around $100k loan. The best rate so far ends up being my HELOC at around 3%…
Just curious how it appears you manage to do things that other people say can’t be done…
