Investment Property In Mobile County

By
Real Estate Agent with RE/MAX Select

If you have been considering getting a piece of rental real estate for an investment, there has never been a better time!  Here is an example showing how great a return on your money that can be.  Let's make a couple of assumptions for the sake of this example:

  • you are paying $100,000 for your property
  • you are getting a 15 year loan at 8%
  • you are paying 20% down
  • you can lease the property for $1100 per month
  • closing costs are $3000
  • repairs and updating cost $7000
  • insurance costs $900 per year
  • taxes cost $600 per year
  • routine maintenance is $600 per year
  1. down payment               $20,000
  2. closing costs                     3,000
  3. repairs and updating         7,000

                                                ______

          total invested                 $30,000

 

  1. principle and interest            $765
  2. insurance                                 75
  3. taxes                                       50
  4. maintenance                            50

                                                _______                   

total monthly expense                   $890

 

$1100 - $890 = $110          $110 x 12 = $1320

 

  1. appreciation on value        $4,000
  2. principle reduction               3,100
  3. positive cash flow                1,320
  4. tax incentives              (ask your CPA)

                                                   ______

       total return first year             $8,420

 

$8,420 / 30,000 = 28.1% return on investment your first year.  This does not take into account tax incentives your CPA can help you with.  This property will be paid off with no further investment. 

If this doesn't light your fire, then your wood is wet!

Call me for more information.  I would be happy to get you investment properties to look at and help you find financing.

 

Posted by

John  

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate General Information
Location:
Alabama Mobile County
Tags:
real estate investing
cash flow
return on investment
roi

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
39,929
Mike Liess
Remax Custom - Penfield, NY

Thanks for the post John, looks like a good place to invest, much like Rochester NY. Can't believe how cheap the taxes are, I need to get out of NY AND MOVE SOUTH!

Jan 16, 2012 10:50 PM #1
Rainer
14,710
John Stikes
RE/MAX Select - Mobile, AL

Come down Mike.  I was born in Brooklyn and love it here.

Jan 16, 2012 11:05 PM #2
Post a Comment
Spam prevention
Show All Comments
Rainer
14,710

John Stikes

Ask me a question
*
*
*
Spam prevention

Additional Information