I think there is a lot of truth in today's economic climate about people wanting to find alternative ways to invest for retirement or financial security. If you think about the rates of return and constant ups and downs in today's marketplace you can easily see why a double digit rate of return on your investment makes sense. Let me explain how we come up with these numbers... I will give you an actual scenario on a rental property currently in our portfolio.
Purchase price: $104,000
Total Investment: $24,000
Mortgage Payment: $549 Monthly (using 80k at 4.25% @ 30 years plus tax and homeowners)
I am currently renting this property for $1,050 a month. This leaves me after property management fees with a positive cash flow of $396 a month.
This leaves me with an average rate of return over the past 5 years of 15% on my initial $24,000. These figures also do not include the potential tax benefits of the mortgage interest write off and the value increase of my property and equity which is currently valued around $130,000. You can use the additional monthly money to pay down the mortgage or build a portfolio for income now. As you can see by doing this formula a number of times can snowball into a nice retirement or steady income in retirement. AND I have no rental management headaches.
If you would like to learn more about our investing strategy or assistance in getting more return on your existing real estate investments please contact us and we can work with you and your realtor.
www.865Properties.com
