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Creative Money Management

December 15th, 2013 at 08:38 pm

I applied to 5 jobs yesterday. I'm not feeling so optimistic about getting a job quickly, so I'm still thinking of ways we can increase our monthly income using the resources at our disposal.

And here is an option to increase my monthly income:

If I spend $107k on a property- I can bring in $935 a month income.

Is that a good deal? Something you would do?

I'm considering it. But hesitant.

Its one of my current rental properties. It brings in $1950 a month, but I owe $107k on the mortgage. So I pay $935 a month on the property.

The $935 also covers the escrow account and insurance, so it would be more like $800 a month income.

It's an option that crossed my mind today. I don't know why I had not considered it before.

I'll bring it up to husband. But I think I would rather wait and spend the next 6 months waiting to see what the real estate market does. If it goes down- I think we can get a property that will yeild a better return.

hmmm things to think about.

Posted in Rental Properties | 3 Comments »

3 Responses to “Creative Money Management”

  1. creditcardfree Says:
    December 15th, 2013 at 09:18 pm 1387142325
    1387142325

    I'm not a big real estate person...only own my own home. $107K can cover $800 worth of income for nearly 134 months or 11 years. I would just draw on that money for awhile, so as not to tie it up in a property. I'm just looking at the other side of the coin.

  2. FrugalTexan75 Says:
    December 16th, 2013 at 02:40 am 1387161622
    1387161622

    I'll ditto what CCF said. I think it would be better to hold onto that money and wait than put it all into a house you already own. If you're worried that you'll spend it all, maybe tie it up in a 6 month CD or something like that.

  3. TashaC. Says:
    December 16th, 2013 at 01:46 pm 1387201599
    1387201599

    Well I was kind of thinking along those lines as well. I don't want to tie up all our savings and lose an opportunity down the road to purchase another property.

    But the mortgage is at 5.5% interest, so I would be saving almost $100k over the next 25 years by paying it off now. (I called about refinancing- but since it is an income property- the mortgage interest rates are higher than personal residences.)

    I'll just keep it as an option in my head but not going to do anything right now.

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