First off, what is Debt-to-Income? The Debt-to-Income ratio is one used by lending institutions when underwriting your loan (for almost anything - car loan, mortgage, HELOC, etc). DTI is a calculation they use to measure the risk on which you'll be able to pay back the loan you're seeking. The lower your DTI, the less … Continue reading Real Estate Investing Terms: DTI
A friend of mine recently asked to see a blog post about our first few acquisitions. Starting to provide him with those links (on what I consider my wife and mine's first buy and hold deals and not my false start), I realized I never posted about our very first deal. How rude of me! … Continue reading We Will Never Sell This Rental Property…SOLD!
Growing our net worth is one of the main reasons we invest in real estate. I also think it is important to calculate your net worth on a routine basis; I calculate ours quarterly. This helps me keep track of our goal obtainment and also encourages me when months go by where we're paying down … Continue reading How To Calculate Your Net Worth [Spreadsheet]
We consider appreciation extra icing and don't acquire based on assumed appreciation, but we also don't want to be put in a position to exit a property and be required to bring money to closing. ____________________________________________________________ If you've been following us you know we have adopted a tripod of investing criteria we use to analyze … Continue reading How We Use Our Tripod of Adopted Investing Criteria
I received the email no landlord wants to receive. "It's the 11th of the month, Unit A hasn't paid rent yet. Do you want us to start the eviction process?" ____________________________________________________________ Being my first eviction and at times a hard ass, my initial reaction was, rent is due on the 5th, it's the 11th, why … Continue reading My First Eviction Turned Into Greater Cash Flow
Because we focus on buy & hold rental properties in Pensacola, Cash Flow is the most important metric we look at when considering an acquisition. _____________________________________________________________ Caution: This post goes technical real quick and my geeky side does come out 🙂 Most people, even some experienced Realtors, think cash flow is the gross revenue generated … Continue reading Real Estate Investing Terms: Cash Flow [example]