Investment Property #Deuce
Purchase Price: $155,000
Loan Amount: $124,000
30 Year Fixed/3.75%
Initial Investment: $39,520(Down Payment, Closing, Repairs)
Exterior Paint
Interior Paint
New Flooring
New Appliances
Misc....
Rent: $1295 (1 year Lease)
Monthly Payment:$734
Gross Mo. Cash Flow: $561
Principal Reduction(Mo. 1st year):$175
Monthly Appreciation(3% Yearly): $387.50
Gross Monthly Financial Gain: $1123.50
Now you know why I no longer own a 1969 Camaro.
With all the costs, it ROI's 100% back in just under 4 years. I've decided to add $218 a month to reduce principal which pays off the mortgage in 18 years. Still cash flowing every month along the way. Yes, I'm building in 3% yearly appreciation along the way. I bought it for late 90's prices at 3.75% interest. Hell yes!
I fix them up NICE. I have the fringe benefits of being in the business. I received a 6% commission and manage my own properties. I had tenants beating down the door. I ended up with 5 that wanted it and picked a couple in there late 50's that had to short sale their home bought in the boom.
It's a prime location, backs to the community trail system with a private gate to the trail, two blocks to the community center, library, 3 blocks to one of the best elementary schols in town, walking distance to the hottest hang out spot in Henderson.
Four more to go.......
