Foreclosure Field Report

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Let’s Talk Numbers:As always, these are estimates! Please do your own due diligence as well-I work very hard to present honest and conservative scenarios, but I don’t know your own personal situation!

I talked to the agent yesterday, one bs offer, nothing else as of 24hrs ago. I have not been able to reach him again today. Let’s do the numbers:

Say on the not too high, not super low side each unit rents for $850. You get off street parking, garage storage space, washer and dryer, so that should be pretty easy to get.

The list price is $234,800, I think a conservative (i.e., high purchase price) number for this is at least $265,000. So let’s do the loan at 5% assuming owner occupied financing with 20% down. A 30 year fixed principal and interest will be $1,138. Plus $221 for tax. You’re clocking in at $1,359 total.

I’m assuming this would be self managed and am not including a 7% management fee, and as this is 2-4 units, not commercial loan is required. Your gross rents are $1,700, subtract the monthly payment, and you’re left with $341 POSITIVE CASHFLOW per month. Knock off the $41 for the heck of it and insurance, and you’re still up $300 bucks per month.

If you live in one of the units, you’re at $509 per month, with insurance, $550. This is your monthly payment. Unbelievable.

Pretty cool! This place pays for itself, and if you live in one of the units, you can do it for less than it would cost to rent it!

See how this investment performs over time!

This entry was posted on Friday, December 18th, 2009 at 4:39 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.