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dan87951
Guest
I’m 25 years old just graduated from college with a computer science degree and got my first job in Michigan. My girlfriend who I’m engaged to get married to in the next year or so is also in the same profession and our combined income is about 80,000 a year. My plan is to buy a duplex and live in one side and rent out the other side. We have a place in mind that is $92,500 which is fairly nice (vinyl siding, new roof/windows, updated kitchen) and is currently being rented out at $600 a side. I believe one of the renters is getting aid from the government to pay the rent. The house does not need anything and is ready for move in rent status. I have been pre-approved for the loan at 6% fixed over 30 years. The loan officer suggested that I do a 80/20 loan to prevent PMI payments but in the long run I pay alot more in interest which doesn’t make sense to me. The first loan of 74,000 is at 6% and the second loan of 18,500 is at 8.24%. My plan was to pay about a $950 a month anyways on this house to get it paid off quicker so the 80/20 doesn’t make sense to avoid PMI. I will be putting $5k down. These are the numbers I came up with (look below). I configured the below with financing $87,500 at 6% which gives me a base payment of $524.61 and I’m adding $400 per month to pay it off quicker which gives me a total monthly payment of $924.61. I would appreciate any guidance or suggestions..
Rental Income +$7200.00
Rent from girlfriend +$4800.00
Mortgage - $11095.32
Insurance - $600.00
Taxes annually - $2100.00
Operating Cost - $1500.00
Neither of us have car payments but I have a school loan of $25000 that is about $250 a month.
Thanks
Rental Income +$7200.00
Rent from girlfriend +$4800.00
Mortgage - $11095.32
Insurance - $600.00
Taxes annually - $2100.00
Operating Cost - $1500.00
Neither of us have car payments but I have a school loan of $25000 that is about $250 a month.
Thanks