Author Topic: Acceptable amount of debt for mortgage loan??  (Read 887 times)


  • 5 O'Clock Shadow
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  • Posts: 39
Acceptable amount of debt for mortgage loan??
« on: December 30, 2015, 05:49:30 AM »
ran some numbers for

$120,000 Townhome                                                     Rent  a month (low end)    $1200

-$42,000 Down payment                                                Housing association fee   -$200

$78,000 loan @4.25% = $3315 interest /year                  TAXES                            -$200

                                                                                    INTEREST PAYMENT          -$277

                                                                                                                       $523 LEFT OVER (every month)
So im thinking this is reasonable for a mortgage on a rental property im also calculating conservatively so my interest rate is slightly higher and HOA A FEW HUNRED HIGHER and taxes a few hundred high and rent more reasonable to expect $1,300-1,400. One thing I would like to add is that the principal payment isn't in this at all if it was it would mean another $300 a month so only $223 left over but I plan on rolling everything left over into paying off the place. Also have another property that brings in around 6k a year after all expenses and no mortgage on that so I plan to use that as well to pay off the rental and hopefully another 10k a year to pay of the mortgage so in all 12k from rental income to pay it off plus 10k a year outta my pocket to pay it off ASAP. So my question is does this sound reasonable or does it look like im stretching myself? yes I have calculated maintenance but the place is fairly new and I already own a similar property and up keep is minimal also didn't add months vacant but again just throwing out general numbers but if there is any big thing im missing feel free to chime in.