Can some experienced investors give me a few examples of some real world, good single-family home deals they’ve had? I’m looking for examples in all price ranges…thanks!!!
E.G.
~Deal Details~
20% down / 80% leverage on a $60k house…rent ready; $1000 closing costs / minimal since in this deal I’m not going through a bank, [using owner financing] and only paying title fees, title insurance, etc
+$800 a month rent
-$400, or 50%, allowed for vacancy & maintenance
-$150 a month mortage payment over X years at Y interest
-$50 a month insurance
-$100 a month property tax [it’s bad in Texas]
EQUALS
+$100 a month NET cashflow
Also, can anyone recommend a real estate book that shows SEVERAL financial breakdowns of various SFH deals. I’d like to see some of the accounting side of REI investing… note I’ve already read plenty of books on how to do deals. Thx
Hi motivated. Insurance and taxes are included in that 50% so it would look like this. By the way if you think 100 per month is bad for taxes then you havenet been to new york…
+$800 a month rent
-$400, or 50%, allowed for vacancy & maintenance
-$150 a month mortage payment over X years at Y interest
In Texas, you can easily pay 2.5%+ of the house value per year in property tax. Supposedly there is going to be decrease in property taxes, but that has yet to happen. So a $100,000 house probably has $2,500 in property tax — and if that house rents for $1000 a month you’d be looking at 2.5 months of the 12 months payments just going to property tax. That’s before the mortgage, insurance AND repairs which are guaranteed to happen.
ha new york is the result of voting for people like hillary clinton chucky shumer charlie rangel and the likes of other socialists/borderline communists. Thats a different website though. Anyway I pay 2500 on a 60k property.Sad to say, Beat that! I think new york is the highest taxed state hence the results of being a liberal one.
Hello Motivatedceo and dwj469
I’m trying to learn the ropes here since I am intrigued by the rental business.
Quick question?
In your example, Is your monthly mortgage pmnt $150/mth.
Excuse my ignorance…
Thanks,
Beginner
Yes. That assumes $12k down on a $60k note, with $48k in the balance. However I really doubt you can find a mortgage like that … unless it was interest free … it was just hyopthetical. Realistically, a $48k note for 30 years @ 5.75% interest would still be $280.11, and getting 5.75% from a private party noteholder is virtually impossible I bet.
Thanks,
I got it now.
I had done the numbers and kept getting more than $150.
I just thought, you were talking about an int. only loan and
trying to capitalize on the equity later.
Thanks for your input.