OfflineWe have a 2 Bed/1 Bath/1Car Garage with separate Den
or 3 Bedroom (1210 sq. ft. under central heat/air). Recently Remodeled Kitchen; Appliances; Bathroom; Laminate; Tile, etc.
Offered at $ 39,000 : Average Rent is $ 600/month;
Less expenses; Taxes-$45/month; Ins-$60/month; Property
Management-$60/month; Repairs/Maint.-$50/month = $ 385
per month.
If you finance $ 27,300 (70% LTV) the payment would be about $ 137/month; $ 385-137=248(positive cash flow)
$ 248 X 12 months = $ 2976; divide that into your down payment of $ 11,700 = 25.4% ROI.
If interested, send me a PM for more info. Thanks,
Gary/Jill
__________________
I wish I was in a position to pick that up
Working on getting there though.
Andrew Dean
and in no time you'll be in that position.
I'm confused...
Wouldn't you take the rent pmt of $600 and then subtract expenses ($385) and subtract your loan pmt ($137)?
$600-$385-$137=$78
I am only asking because I don't understand how ROI is figured, but it seems like that would make sense to me.
Thanks for any help in understanding.
Karen
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
Taxes-$45; Ins-$ 60;Prop.Mang-$ 60; Repairs/Maint-$ 50; = $ 215 : $ 600(rent) - $ 215 = $ 385 (gross cash flow, if you had no mortgage) Since the mortgage would run about $ 137 per month, subtract that from the $ 385 = $ 248(net positive cash flow).$ 248 X 12 months per year = $ 2976(total net rental income). Take $ 2976 divide into your down payment of $ 11,700(30% of the $ 39,000 purchase price) = 25.43% return on your investment. To double check it take your down payment of $ 11,700 X 25.43% = $ 2975.31/year income on your investment.
Do you know of any bank or lender that will lend that low of an amount? When I was trying to purchase some properties in Evansville, I ran across the problems of the fees that are charged, even though very minimal, did not meet the new guidelines of the % they are allowed to charge relative to the loan amount; so this usually makes loans below a certain amount not possible today. I don't remember the number, but I believe it was 40K minimum loan amount. I even tried some small banks in the area; none were able to lend on that amount. Any insight would be very appreciated!
Thank you so much for clarifying. I was misreading.
Now I get it.
Karen
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
Speaking of investments, I was wondering if someone could help me to see if i'm figuring right. A property is valued at 4,622,300 million but it's on the market for sale @340,000 thousand, would that mean that it has over 4 million and some change in equity?? Any help is appreciated.
Pone
We sold a house in the same area in the beginning of this year & the buyer
got a 29K mortgage. I don't know if the number has changed since then, but you can always go with a higher LTV like 80%. Even bigger banks like Suntrust
will go that high & just charge a little higher APR.
That is better because you leverage the property more, so your loan would be $ 31,200; payment is about $ 172/month; gives you $ 213/month net positive cash flow X 12 months(year) = $ 2556 income. $ 2556 divided into $ 7,800(down)
is 32.7% return on investment!
I'll send you some pics.