[mtimeMember@mtimeJoin Date: 2009Post Count: 11]

March 21, 2009 - 7:01 am

Hi Terry

Looks complicated.  I will investigate the options strategy.   

[mtimeMember@mtimeJoin Date: 2009Post Count: 11]

March 14, 2009 - 12:53 am

Hi Craig

This is clear.  Will re-evaluate needs.

Thanks

[mtimeMember@mtimeJoin Date: 2009Post Count: 11]

March 7, 2009 - 9:06 pm

Hi Craig
Yes, not sufficient.  I think I need help with the sums.
I'm seeing if we can convert our current ppor into an investment.
However, I think it would be better to reno and sell to unlock the $90,000.

The problem trying to calculate the cocr is with the deposit and closing costs. Because it was ppor we put the $90000 into it, so I've used this amount in the following: (happy to be corrected)

Cash down:
deposit and closing costs = $90,000

Cash back:
annual rent = $18720
– loan repayments ($24500 mortgage) = $12740 (current interest rate 5.2%)
-management fees (7.7%) = $1441
-rates, insurance etc = $2500
total cash back = $2039

Cocr
Cash back: $2039
divided by cash down: $90,000
= 2.26%  (different answer again!!!!!)

I can see that $90,000 down with a small return is not a smart investment choice.

[mtimeMember@mtimeJoin Date: 2009Post Count: 11]

March 6, 2009 - 8:25 pm

Thanks Terry

I can see that now. Its tiny but still positive!

[mtimeMember@mtimeJoin Date: 2009Post Count: 11]

March 6, 2009 - 7:52 am

Hmmmm… I'm not sure about that one. However, I am happy to be corrected with an explanation.
 

[mtimeMember@mtimeJoin Date: 2009Post Count: 11]

March 6, 2009 - 7:48 am

Interesting, Perp.

We don't have internal stairs either and a completely fully enclosed space underneath.
How does everyone get along with certain compromises made (noise, visual etc)?
Have you encountered any issues?
How have you felt having your living space shared?

[mtimeMember@mtimeJoin Date: 2009Post Count: 11]

March 4, 2009 - 7:48 pm

Hi Scott

Thanks for your reply.
I should have asked the question as follows:

We have a ppor that we want to turn into IP and lease.
We put $90,000 into it at price of $355,000.

I understand that COCR is as follows:
Cash back $809 divided by cash down $90,000 = .89%

So how do I translate .89% into a $ amount back per $ spent?
(as seen in Steve's 'From 0 to 260+ properties in 7 years' – pg248 – if you have it)

[mtimeMember@mtimeJoin Date: 2009Post Count: 11]

March 3, 2009 - 7:50 pm

Anyone?