How to Use Your Homes Equity…

Money is a funny thing.  When you leave it alone it is almost like a pile of sand that dissipates in the wind.  Inflation is not a pretty thing for money, however, if you deploy that money into something that can earn interest, cash flow, or increased equity…now we are talking.

One of my favorite things to do with equity is utilized it to purchase rental real estate.  What I mean by that is, I buy a duplex, 25% down, $175,000. My rental income for two units is $900 per side so $1,800 a month.

Check out  and put in $175,000 as the purchase price, 25% down, and a modest interest rate.  

Sitting at about $850 a month of principal, interest, taxes, and insurance means that you have around $900 left over monthly after tenants pay their rent.

There is still vacancy, maintenance, property management, and repair escrows, but you should still have around $400 left when all is said and done.


That is $4,800 a year.  25% down is $43,750. You are making 10% of your money!

The principal of your mortgage goes back to what you owe, interest is deductible, so is depreciation and the insurance cost.

Do the math, you end up making around 18-22% on your money cash on cash.

Let us know if we can help explain further.

To Buy or To Rent That is the Question…

If you buy a home as opposed to renting, what are you doing?  Well first off, let’s talk as if you were to own this home for the full 30 years of a mortgage and it was a $250,000 home. You put 10% down.  Your mortgage is about $1,400/month and it is a robust, 4 bedroom 2 bath home.  You love it.

During this time you have replaced the roof twice at $10,000 a pop and the a/c twice for $5,000 a pop, so you have $30,000 over a 30 year period of major repairs…the rest is paint, carpets, etc…  That is subjective but let’s pin that at $10,000 more dollars.
You have spent $40,000 over a 30 year period or $1,333 a year/$111 per month.  OK, so now what?
Here you are at the end of the 30 years and you now own this home and it has increased to a value of $325,000, pretty cool.  Take out the $40,000 you spent over the years and you are semi-wealthy.

If you rented for this 30 year period, you would have paid $1,750 a month in rent for that 4 bedroom 2 bath home.  When you consider that in the previous scenario, you were paying a mortgage that was $350 less…but take out the fact that $111/month on average was what you spent on repairs per our calculations.
OK, so what does this leave you with in 30 years?
Your deposit back of $1,750.

There are down payment assistance programs, historically low-interest rates, and off-market inventory that we specialize in….give us a call and let us tell you about how you can buy up to a fourplex with a VA or FHA loan and start cash flowing on your first purchase.
Are you a few years into the game?  We can help you invest your hard earned cash and purchase multi-family cash flowing property.
Either way, we are here to help.

Climbing a Mountain…

Finding your dream home or listing your home can be very similar to looking up aimages mountain.

In the beginning…there you are, you and your significant other, maybe family, and you have to find a way to get up there…

But what if you had a Sherpa?  What if that Sherpa had 5 more Sherpas that were his/her assistants?

What if that Sherpa scaled that mountain 3,000 times in the past few years with a perfect record and they were assigned to your family to get you up there?
Well, if you haven’t caught on yet… MavRealty is your Real Estate Sherpa.

Let’s go climbing!

Look at the Curbs on That One

Curb appeal can make or break your home sale. 

Hiring discount real estate professionals or even worse, trying to sell your home yourself can result in disaster all starting with the presentation.

The first 72 hours for a listing is the most crucial time…the way the home is presented to the world, at what price, and how inquiries are handled…

Accepting an offer too soon only for it to be cancelled because there was no pre-approval, your agent doesn’t answer their phone after 2 pm... the photos are horrendous, or because the price is too high! Bait and switch listing! ««See last blog post.»»

Bottom line is that when it comes to buying groceries, you can handle it yourself or better yet use Shipt, but when it comes to selling real estate, use an expert.

The specialization required to ensure a completely safe, legal, and financially beneficial transaction all lies in the world of a  real estate subject matter expert. RESME for short, or simply “Any MavRealty Agent”



Don’t Fall For It…

Don’t just let any real estate agent list your home. images (1)Don’t fall into a bait and switch listing. At MavRealty we are experts at deriving the current value of your home taking into consideration any and all future and current repairs required.

Time and time again we see listings expiring due to realtors who champion listing price points that are absolute exaggerations and a colossal waste of time for the seller.

If you would like an accurate depiction of your homes value and a true understanding of the current pulse of your market, give us a call or email today.