When I look for deals for investors, I analyze the deal from every angle to make sure it is the right opportunity for any investor-new or seasoned. My goal is to find excellent cash flow or a minimum 20% first year ROI, but hopefully BOTH. This deal is one of those! Strong monthly cash flow (Over $500 month) with a 48.6% first year ROI!
Take your choice of one of two adjacent properties-or maybe both!
2548 and/or 2550 Druid Park Dr listed at just $79,999 each. Both are currently vacant for sale, but were inhabited within last few months. The below assessment works for either property.
- 3 bedroom
- 1 ba
- Absolutely Turnkey
- READY TO RENT
- Just listed-so take a look quick!
Deal Analysis Purchase:
- Purchase $79,999
- Down Payment (20%) $16,000
- Loan Closing: (6%) $3840
- Repair estimate: $1500 (added just for any incidentals-no real work needed)
- Mortgage Amount: $63,999
- Monthly PI: $425.79 (7% fixed 30 year)
- Annual Taxes $651 ($54.25 month)
- Hazard Ins: $480 ($40 month)
- Total monthly expense: $520.04
- Total Invested: $21,340 (DP, closing, & repairs)
- These numbers are all estimates and are not intended as commitments to loan.
Return on Investment:Buy & Hold Strategy (1st year)
- Market rent $1100
- PITI $520.04
- Cash Flow of $579.96 month $6959.52 annual 32.6% ROI ($6959.52/$21340 invested)
- Depreciation return: $31000 Tax Value/27.5 year depreciation schedule=$1127.27 year. Assume a 33% tax rate=$372 per year deduction or 1.7% ROI
- 1st year loan (principal) pay down- $650.11 or 3.0% ROI
- Appreciation: Using an appreciation rate in this market of 3% based on purchase price not market value-$2399.97 or 11.2% ROI
- Total 1 year ROI: $6959.52 + $372 + $650.11 + $2399.97 = $10381.60 or 48.6% ROI
For more information or your personal tour contact me or Amir Head 443-455-0029.
Stephen Luckett
LuckNet Real Estate Group
443-384-6000 Office 443-912-4866 Cell