Hi everyone,
From my previous posts of low income housing
(https://steemit.com/finance/@johnny-appleseed/real-estate-and-crypto-passive-income-to-financial-freedom and https://steemit.com/passiveincome/@johnny-appleseed/post-3-real-estate-for-affordable-housing-building-containers-homes).
I will also brush on high income housing. Aside from low income housing, I am also very interested in higher income rental passive income.
After a number of positive cash flow properties, you are ready to get into a high price housing market, but still remain cashflow positive.
Oceanview Check.
Dope interior Check.
Keep in mind, that you would need a lot of help to do something like this. Many banks don't approve additional mortgage unless you manage your income and cash flow meticulously.
How do you get additional money to do something like this?
The answer is never simple, and it's not easy.
There are some credit unions and banks that allows you do get a bigger mortgage as long as you show you have a history of cash flow positive real estate. If you can find a good bank or loan credit union, you can usually get up to 10 properties. If you can find a bank near you that is willing do this, never let them go.
You might be able to get a blanket mortgage covering multiple properties basically covering more than one of your properties.
The easiest way is to....
beg.
Once you have show a track of success, you will have a strong web of relationships from wealthy friends and family that are interested in your endeavors. Aside from this, banks and credit unions will also take notice on your success and offer you a loan that is an adjustable rate mortgage loan.
I am very fortunate to find a low interest ARM loan that fits my needs.
So once again, lets get down to the numbers.
Cost and renovation of the rental: 300,000.
Loan Terms: 10 Years of 3.8% and Balloons after.
$2,401.78
Monthly Payment
Jan, 2028
Loan pay-off date
How in the world would can I pay $2,400 a month? Find a tenant that fits the market. You must research the market.
Currently, the market on Guam is that the Military Overseas Housing Allowance is on fire.
http://www.defensetravel.dod.mil/site/oha.cfm.
An average officer gets a stipend of $2200-$4000 via housing stipend. This makes it a very lucrative market to invest.
Check your local housing stipend and make offers that match your needs.
I can always refinance and redo my mortgage if I deem that my cash flow is too low. By that time, my other passive income properties would be able to significantly lower the risk exposure I have for these type of properties.
Remember that getting to this point is will require you to start small which is going to be my next posts. How to get the snowball rolling. I cannot stress this enough that you need to learn your market and consumers prior to even start doing this endeavor.
These posts are all a little taste of future posts and I will go into much greater detail over time.
Thank you to all my followers and future followers!