Image via Wikipedia Would you like to add automatic deposits of several hundred dollars to your checking account on a regular basis? Everyone would answer” Yes, but what’s the catch?” Well before I tell you that, what if you also received interest write-offs on your taxes. You can also depreciate the source of this income. However, the ... [Read More]
Image via Wikipedia
Would you like to add automatic deposits of several hundred dollars to your checking account on a regular basis? Everyone would answer” Yes, but what’s the catch?” Well before I tell you that, what if you also received interest write-offs on your taxes. You can also depreciate the source of this income. However, the value of the source of the income is likely to increase in value over time. So what’s the catch? You have to make an investment just like any business. You have to manage the investment or have someone manage the investment for you. How much do I have to invest you may ask? What will it cost me you may ask? The question is perhaps not what if will cost, but HOW MUCH AM I GOING TO MAKE? If you invest $28,000 (20% down) on a $150,000 single-family home in today’s real estate market, your payment would be around $800 a month and the rent you collect each month could be as much as $1500 in some markets which would produce a POSITIVE INCOME of $700 per month. A simplified net ooperating cost would use 8% or $120 or management fees and for a one-month vacancy factor of $66 ($800/12) and you would still get a positive cash flow of more than $500 a month for long as you own the property !. So the question now is when will I get my investment back? Simply divide $28,000 by $6000 which is a little over four years and less than five years.
Now compare that with other investment opportunities. All have risk. Returns will vary and you could even lose money. You could make a return that would be so low, that at best, you would hope to beat the inflation rate . Yes, you could buy that lucky stock on the start up, but the odds are against it.
How can you get started? All you have to do is call a Realtor.
In an effort to speed up the short sale process, some lenders are choosing to automate the way approvals are given. Bank of America is using a new system to automate the approvals of short sales, called Equator. It uses an Automatic Valuation Model (AVM) like Zillow.com to determine the value of the home, and ... [Read More]
In an effort to speed up the short sale process, some lenders are choosing to automate the way approvals are given. Bank of America is using a new system to automate the approvals of short sales, called Equator. It uses an Automatic Valuation Model (AVM) like Zillow.com to determine the value of the home, and [...]
