Related Posts
What are your thoughts on ESPP?
More Posts
How’s comp and culture at Altamont?
Hi, I created this bowl to connect people applying to KPMG with the right person. I post different job openings that might interest you too. Or you can ask me with any job categories and I can let you know once there is a vacancy. Please email me your resume and I will start by referring you to the KPMG portal. My email address is anjaansam@gmail.com. Thank you!!!
Additional Posts in The Real Estate Bowl
New to Fishbowl?
unlock all discussions on Fishbowl.








Buy a primary resident late in 2019 at 2.125%, live there for the first part of Covid, then as the rental market explodes, move out and rent it out for $1000 over PITI etc. Repeat.
Coach
Finding cash flowing properties just takes time and dedication to keep on searching for a property. The market has shifted a lot the last year and half. It’s not like pre COVID where you could basically pick any duplex and you will cash flow. It going to be a lot harder to do in this market, but still possible.
To your second question, to have enough cash flows from rental to replace your income will take a long time. Let’s say you make 100k, and your first rental nets 5k a year. That means just to produce the same income you will need 20 properties. That being said, I probably wouldn’t feel comfortable giving up my job at 20, since if we are being honest income from properties while it can be passive, it’s not as stable as a W2 job. On top of that, you have to factor in that at any given year, you could have a big unforeseen capital expense, think tree falls on roof, and you will have to dedicate a portion of what you thought was you take home pay to repairs, which can/will intrude on your lifestyle. So in my opinion, for me to give up my job I would need to produce 1.5x to 2x my income before I quit my job.
I used an FHA (3.5% down) loan on a $330k duplex at 4.2% in New Orleans that cash flows $1700-$2000 via STR method (mortgage payment of about $2300). I just decorated the bottom extremely well and it stays booked on Airbnb. After the first year I moved out and now I can rent out the top and bottom. Just gotta search the listings and do the math for what makes sense for you. Figure out:
-How much can you realistically shell out (down payment + closing costs)
-given that lump sum, what house can you afford if you want to do 3.5%, 10%, or 20%
-shop around for the lowest interest rates possible
-what will the TOTAL monthly payment be at that interest rate (mortgage, insurance, tax, mortgage tax, etc)
-search comparable rents OR model out the STR metrics if you feel like going that route (you may need a permit)
-if the comparable rents or amount you can make via STR is higher than your all in recurring monthly payments then you are good to go. I would buy immediately
I bought a short term rental in 2020 that was netting $2-3k per month. Ended up selling it last year for 2.5x what I paid.
What market?
My parents are accidental landlords as they turned their first home into a rental and the rent was more than the mortgage. I used to find deals on the MLS and would just run the numbers for a 20% down payment loan and compare to the rental rates and if I have positive cash flow then I’ll buy it. You can also have positive cash flow if you increase your down payment or pay in cash. I think you also need to look at cash on cash return in addition to cash flow.
It’s a function of purchase price. You need a bargain purchase. Good luck with the 60 year mortgages jacking up prices