income and loan amout ratio, and comfort level

Here is my calculation.

Total loan amount $1M
rental income $2200/month

Two loans:
1. $730K super conforming, 30 year fixed, rate 6.625%, $4674/month
2. $270K equity line, rate 4.5% and dropping, $1368/month

Total mortgage payment $7042

Property tax : $1750/month
Insurance: $130/month
maintenances: $100/month (gardening for rental property)

Total cost monthly = $9022/month

less rental income = $6822/month

With 30% threshold, annual income = ($6822 * 12 * 10) / 3 = $272,880

I feel pretty comfortable with this. In fact I am looking forward to the tax benefit due to the higher mortgage payment and tax free income from the rental property.

I hope that this clarifies my position.

所有跟帖： 

• with this income, you hit AMT. so won't deduct as much -880101- ♀ (0 bytes) () 04/10/2008 postreply 22:47:02

• I hit AMT every year -skyport- ♂ (378 bytes) () 04/11/2008 postreply 06:42:28

• I have 3 issues with your calculation -Wisdom101- ♂ (953 bytes) () 04/11/2008 postreply 05:33:52

• I would like to take a little risk -skyport- ♂ (526 bytes) () 04/11/2008 postreply 06:37:28

• 回复：I would like to take a little risk -Wisdom101- ♂ (201 bytes) () 04/11/2008 postreply 06:44:28

• Thank you -skyport- ♂ (55 bytes) () 04/11/2008 postreply 06:49:51

• Another perspective -Wisdom101- ♂ (481 bytes) () 04/11/2008 postreply 05:45:32

• The actual number is -skyport- ♂ (133 bytes) () 04/11/2008 postreply 06:39:55

• 回复：The actual number is -Wisdom101- ♂ (26 bytes) () 04/11/2008 postreply 06:45:11

• 请问, 用home equity line 的钱会不会对你的credit有影响 -紫燕- ♀ (94 bytes) () 04/11/2008 postreply 09:07:09

• Absolutely -Wisdom101- ♂ (188 bytes) () 04/11/2008 postreply 09:20:17

• 影响肯定是有一些的，是赚钱重要，还是所谓高分数重要 -抛玉引砖- ♂ (119 bytes) () 04/11/2008 postreply 09:25:03

• Agree -Wisdom101- ♂ (41 bytes) () 04/11/2008 postreply 09:37:16