Investment Property In Mobile County

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.